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DOCUMENTS "COM"
COM(78)633
Vol.1978/0247

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(78)633 final
Brussels ,24November 1978
SEVENTH FINANCIAL REPORT
onthe
EUROPEAN AGRICULTURA !.GUIDANCE
AND GUARANTEE FUND
YEAR 1977
PART II GUARANTEE SECTION
V■."■A
•X,"
COM (78)633final

Introductory note
Article10ofRegulation (EEC)No729/70onthefinancing ofthecommon
agricultural policyprovidesthat"before 1Julyofeachyear,theCommission
shallsubmittotheCouncilandtotheEuropeanParliament afinancial report
ontheadministration oftheFundduringthepreceding financial yearand,
inparticular ,onthestateofitsresources andthenatureofitsexpenditure
andtheconditions underwhichCommunity financing hasbeeneffected".
TheCommission hasaccordingly submitted sixannualreportssince1971,
whenthedefinitive financing systemcameintoeffect.
Thisreportcoverstheactivities oftheGuarantee SectionoftheEAGGFfor
the1977financial year.Forpractical reasons,thisyear'sreportonthe
EAGGFwillbepublished intwoseparate parts,onecovering theGuarantee
Section andtheothertheGuidance Section .
TheGuaranteeSection partalsocoversthefinancial operation ofthe
Community Food-Aid programme forproducts comingwithinthecommonmarket
organisations .
TheGuarantee Sectionfinances expenditure resulting fromthecommonpolicy
onagricultural marketsandprices.UnderArticle 2and3ofRegulation
(EEC)No729/70thiscomprises refundsonexportstonon-member countries
wherebyCommunity agricultural productsaredisposedofontheworldmarket
andintervention intendedtostabilize agricultural markets.

I
SUMMARY OFTHESEVENTH FINANCIAL REPORT
Becauseoftheimportance oftheEAGGFanditsmultipleactivities /
forthefirsttimetheSeventhFinancial Reportisdividedintotwo
separateparts,onefortheGuarantee Sectionandtheotherforthe
Guidance Section.
PartI:Guarantee Section
1.Introductor^note
ItisrecalledthattheEAGGFGuarantee Sectionisresponsible
forfinancing expenditure inrespectofthecommonpolicyon
agricultural marketsandprices,including thatresulting from
currencyfluctuations .
Information ontheGuarantee Sectionhasbeenexpanded considerably .
Thenumberofannexeshasbeenincreased soastogivethefullest
detailspossible onthedevelopment ,distribution andnatureof
expenditure bytheEAGGFGuarantee Section.
2.TitleI:Developments inthe_Community_f inancing_of_the_agri cultural
marketsandprices_gôli C£
Thispartbeginsbydiscussing thoseamendments tomarketregulations
whichhadfinancial implications .In1977manysuchamendments were
made,particularly inthemilkandmilkproductssectorwiththe
adoption ofaseriesofmeasurestoimprovethebalanceonthemarket
intheseproducts .
TherulesrelatingtoCommunity financing werealsothesubjectofnumerous
amendments .Themostimportant oftheseweretheCommission proposal
ofDecember 1977ongeneralintervention rules,adoptedbytheCouncil
in1978,andnumerous amendments oradditions concerning specific
points.Totalprovisional expenditure is6662.4millionuaand
ishigherthanthatfor1976(5570millionua).Thisincreaseresults
mainlyfromthefollowing :

II
a)Increase inexpenditure inthemilkandmilkproductssector
(2545million uain1977compared with2051.5million ua
in1976)andthesugarsector (536.6million uain1977
compared with226.5millionuain1976)andforproducts
resulting fromtheprocessing ofagricultural products (124
million uain1977compared with67.5millionuain1976),
broughtaboutbytheriseinexportstonon-member countries
whichgenerally ledtoamarkedincrease inrefundexpenditure
(2496.8million uain1977compared with1666.2million uain
1976);
b)Thisincrease waspartially offsetbyadecrease inexpenditure
insomesectors,inparticular thebeefandvealsector(410.8
million uain1977compared with643.2million uain1976)in
expenditure resulting fromtheaccession compensatory amounts
(174.9million uain1977compared with359.9million uain1976)
andinthewine,seeds,hopsandpigmeatsectors.
3,TitleII:Financial_administrati_on
Theinitialappropriations amountedto6167.4millionuaanda
supplementary budgetbroughtthetotaloftheappropriations
available for1977to7195.5million ua.Attheendof1977
533.1millionuawasstillavailable,ofwhich23.7millionuawere
carriedforwardto1978and509.4million uawerecancelled .The
appropriations available werethusfoundtobeexcessive .
Asisthecaseeachyear,itwasnecessary tomakesizeabletransfers
ofappropriations withintheGuarantee Sectioninordertokeeppace
withactualpayments .
Withregardtothecashsituation,thefinancial resources made
available totheMemberStatesroseto7170millionuain1977,
thusleavingmorecashavailable atyear'sendthanattheendof
theprevious year.

III
•Iliii-ill ■y®Eill£3li2QS_and_ir regularities
TheCommission anditsstaffconcentrated theireffortonthe
systematic checkswhicharecarredoutinconnection withthe
preparation oftheclearance oftheaccounts,andonspecial
investigations intospecificcasesortoensurethattheprovisions
ofthecommonagricultural policywerebeingproperlyapplied.
Problemsspecifictothewinesectorandtheprivatestorageof
beefandpigmeatwerealsothesubjectofselective checks.
In1977theCommission departments andtheMemberStatescontinued
tointensify cooperation inthecampaignagainstirregularities ,
inparticular withaviewtoensuringthatthecommunication by
MemberStatesofcaseswhichcouldhaveimmediate repercussions
inotherMemberStateswasmoresatisfactory .Thetermofoffice
oftheSpecial Committee ofInquiry wasextended andtheworkon
handinthewinesectorwasthesubjectofareportcompleted at
theendof1977.Workwasalsobeguninthecerealssector.
InthecaseoftheGuarantee Sectiontheirregularities recorded
in1977mainlyinvolved monetary compensatory amounts,especially
inthebeef,winepigmeatandmilkandmilkproductssectors.The
169casescommunicated represented anamountof8.5million ua,of
which1.6million uahavebeenrecovered sofar.
5.litle_IV:Clearance_and_c losure_of_the_accounts
Inviewofthemultiplicity ,volumeandcomplexity ofthetypes
ofexpenditure financed bytheGuarantee Sectioncomparedwiththe
numberofstaffavailable,clearance oftheaccounts bythe
Commission isstillsubjecttoconsiderable delay.
Theprioritygiventoworkrelatingtotheperiodspriortothe
introduction ofthedefinitive financing system(1.1.1971 )enabled
theCommission toclosetheaccounts for1967/68,1968/69,the
secondhalfof1969and1970on20December 1977.Itwasnecessary
tomakenumerouscorrections totheaccounts andtoprepareanadhoc
financialregulation whichwasadoptedbytheCouncilinJune1978.

IV
The1973accounts,whichweresubmitted forthenineMember
Statesforthefirsttime,werethesubjectofintensive checks
whichdidnotresultinanyformalconclusions .
The1974and1975accounts werecheckedtogether inorderto
reducethedelayinclearing theaccounts .
6.Title_V :£inancing_of_food_aid
TheCommunity systemoffinancing expenditure resulting fromthe
supplyofagricultural products asfoodaidprovidesthatall
expenditure beenteredintheFoodAidchapterofthebudget,
exceptfortheportioncorresponding totherefund,whichcontinues
tobefinanced bytheEAGGFGuarantee Section.TheCommission has
proposed thattheseappropriations becombined,buttheCouncilhas
notaccepted theproposal sofar.
Themonthlyadvances whichwerethesubjectofCommission decisions
wereupin1977C202.3million ua).Thisincrease wasduemainly
tothedelaysintheimplementation oftheaidprogrammes involving
cerealshavingbeenmadeup.Ofthisamount,183.7million uawere
committed in1977andchargedaspayments,mainlyfortheaid
programmes involving cereals (104.5million ua),milkandmilk
products (77.4million ua)andsugar(1.8million ua).Ninety-one
percentoftheappropriations wereusedcompared with80%in1976.
Unusedappropriations amounting to56.43million uawerecancelled .
TheCommission closedtheaccounts for1974.However,therateat
whichtheaccounts areclearedisslowing downbecauseoftheincrease
inthenumberofactivities .

ν
CONTENTS
Page
TITLEI;DEVELOPMENTS INTHECOMMUNITY FINANCING OF
THEAGRICULTURAL MARKETS ANDPRICESPOLICY
1.Adjustment ofmarketmechanisms withfinancial
repercussions
1.1Alterations incertainsectors 1
1.2Newcommonorganisations ofmarkets 5
1.3Agricultural prices 5
2.Additions totheRegulations governing theEAGGF
Guarantee Section
2.1CouncilRegulations 6
2.2Commission implementation procédures 8
3.Expenditure in1977
3.1General 10
3.2Comparison betweeninitial 1977appropriations
andpayments 13
3.3Breakdown ofexpenditure byeconomic category 19
3.4Agricultural levies 21
3.5Comparison oftheoverallcostoftheGuarantee
SectionwiththeCommunity 'sgrossdomestic
productatmarketprices(GDP) 22
TITLEII:FINANCIAL ADMINISTRATION
4.Cashposition
4.1Advances toMemberStates 24
4.2Fundsavailable intheMemberStatesduringthe
financial year 24
•4.3Percentage utilization offundsavailable 24
5.Appropriations
5.1Summaryofavailable appropriations 28
5.2Transfers ofappropriations 28
5.3Expenditure 30
5.4Appropriations carriedover 33
5.5Summaryoftheimplementation ofthebudget 34
5.6Payingdepartments 35

VI
TITLEIII:VERIFICATIONS ANDIRREGULARITIES
6.Verifications
6.1Characteristics
6.2Inspection visits
6.3.Specialenquiries andvisits
6.4Selective checks
7.Irregularities
7.1Implementation ofRegulation (EEC)No283/72
7.2Thecasesofirregularity
7.3TheSpecial Committee ofInquiry
TITLEIV:CLEARANCE ANDCLOSURE OFTHEACCOUNTS
8.
8.1Characteristics
8.2Periodspriorto1.1.1971
8.31971and1972accounts
8.41973accounts
8.51974,1975and1976accounts
TITLE V:FINANCING OFFOODAID
9.
*9.1Characteristics ofCommunity Foodaid
9.2Thecashposition
9.3Administration ofappropriations andpayments
9.4Closureoftheaccounts
ANNEX:Listoftables36
37
37
39
40
45
46
49
49
55
55
56
58
59
60
63
65

VII
LIST OFTABLES INTHE TEXT
Page
GUARANTEE SECTION
1.Comparison between initial appropriations andexpenditure 14
2.Levels ofMonetary Compensatory Amounts applied intrade 18
3.Breakdown ofcorrected expenditure byMember States 19
4.Levies under theCommon Agriculture Policy 21
5.Funds available toandexpenditure byMember States 25
6.Average percentage utilization ofCommunity funds 26
7.Transfers ofappropriations 29
8.Breakdown ofexpenditure byMember State andtype of
financing 31
9.Cases ofirregularity (1971 to1977 )andsums recovered 47
10.Dates ofdispatch ofrequests forrepayment 57
FOOD AID
11.Breakdown andutilization ofmonthly advances 60
12.Total appropriations available in1977 61
13.Direct payments 62

TITLEI
DEVELOPMENTS INTHECOMMUNITY FINANCING OFTHEAGRICULTURAL MARKETS AND
PRICES POLICY
1-Adjustment ofmarketmechanisms withFinancial repercussions
1.1£lterations_in_çertain sectors
Asinprevious years,adjustments insomesectorshavehadfinancial
repercussions ,themostsignificant ofwhichconcerncereals,milk
products,beefandveal,andwine.
a)Cerealssector
Substantial alterations weremadein1976tothecommonorganization
ofthemarketincereals;themainfeatureofthenewsystemisthe
distinction inrespectofcommonwheatbetweenthequalities which
aresuitable forbreadmaking andthosewhicharenot.In1977the
possibility ofbuyinginwheatofbreadmaking qualityatthe
reference pricefixedforsuchwheatwasalsointroduced ,which
dividedthemarketmoreclearlybetween wheatsuitable for
breadmaking andotherwheat.
b)Dairyproducts sector
TheCouncilapproved theprogramme fortheprogressive achievement
ofbalance onthemilkmarketCcf.SixthFinancial Report,point
1.1.2.b)on26April1977andtheCommission hasadopteddetailed
rulesforitsimplementation .
Theprogrammefirstofallcoverstheintroduction byCouncil
1Regulation (EEC)No1079/77,ofaco-responsibility levyon
producers amounting from1%to4%ofthetargetpriceformilkand
theadoptionofmeasurestoexpandthemarketformilkproducts.
Thelatterarefinanced bythereceipts fromtheco-responsibility
levy.Asystemofconsultation withtradecircleshasbeen
established ,particulartywithaviewtoimplementing thesemarket
expansion measures.For1977/78thelevyisfixedat1.5%andit
1
OJNOL131,26May1977,p.6

-2-
cameintoforceasfrom16September 1977.Asregardsfinancing,
thislevyandthemeasures toencourage marketexpansion fall
undertheGuarantee SectionoftheEAGGF,withspecific mention
1ofthelevyandthemeasures inthebudgetnomenclature .
2Secondly,Regulation (EEC)No1078/77hasestablished asystemof
premiums forthenon-marketing ofdairyproducts andtheconversion
ofdairyherdstobeefproduction .Sincethesepremiums haveboth
amarketaspect(re-establishment ofbalance )andastructural aspect
(rational development ofproduction ),thesameRegulation provides
thattheyaretobefinanced 60%bytheGuarantee Section and40%
bytheGuidance SectionoftheEAGGF.
Thirdly,byRegulation (EEC)No1080/77"*,theCouncilhas
introduced aCommunity contribution ,foraperiodofatleastfive
years,toMemberStates *programmes forproviding milkandcertain
milkproducts atreducedpricestoschoolchildren .
TheCommunity contribution amountsto50%ofthetargetpricefor
milkandispartofthemeasures forexpanding themarketfinanced
bytheco-responsibility levy.
Atthesametimeasthisprogramme ,inviewofthesurpluses inthe
sector,anumberofcomplementary measures wereintroduced ,extended
oramplified inordereithertoincrease existing consumption of
dairyproducts ortocreatenewoutlets.Mentionshouldbemadeof
4
theaidforbutterconsumption (Regulation (EEC)No880/77)
partially financed bytheEAGGFandthesaleofintervention butter
atreducedpricesattheendof1977Cthristmas butter").For
liquidandpowdered skimmedmilkthemeasures werereinforced to
increase consumption inanimalfeedgenerally andamoremarked
difference inthelevelofaidwasintroduced according toutilization ,
inordertoincrease consumption incertainspecific areasofanimal
feedinginparticular .
pThebudgetpresentation wassettledinthesecondsupplementary budget
30JNoL131,26May1977,p.1
,0JNoL131,26May1977,p.8
0JNoL106,29April1977,p.31

-3-
Thispackageofmeasuresforrestoring balanceonthemilkmarket,
directed atbothproduction andconsumption -someofwhichwill
starttotakeeffectonlyfromtheendof1977,whichmakesit
impossible tomakeanyassessment oftheirfinancial effectatthis
stage-andthemajorefforts madeontheexportfronthaveeffected
aslightfallinintervention stocks,althoughtheseremainfairlyhigh.
c)Beefandvealsector
Inviewoftheexperience gainedinthissectorfollowing suchextreme
marketsituations asthescarcity of1972followed bypricecollapse
in1973,largelycausedbycontinuing large-scale importsforacertain
periodatthesametimeasCommunity production increased,anewimportt
systemwassetupbyRegulation (EEC)No425/77.
Thisnewsystemshouldmakeitpossible toavoidanyrepetition of
theimportsituation in1973byusingnotonlyworldpricesbutalso
pricetrendsontheinternal marketforthepurposes ofdetermining
thelevytobechargedonimports.
Although thesituation onthismarkethasimproved somewhat ascompared
withprevious years,andthisisreflected byreducedexpenditure ,it
wasnecessary tocontinue specialmeasures suchastheslaughter
premium(Regulation (EEC)No870/77^)andthecalvingpremium
(Regulation (EEC)No871/77^)forthe1977/78marketingyear.
d)Fruitandvegetables sector
Inordertofacilitate themarketing ofcertaincitrusfruitsinthe
Community asystemofaidwasintroduced byRegulation (EEC)No1035/77^
toencourage thesaleofproductsprocessed fromlemonsharvested
withintheCommunity from1977/78to1979/80.
Furthermore,Regulation (EEC)No1034/77^hasmaintainedthemarketing
premiumforlemonsforthe1977/78marketing year.
,0JNoL61,5March1977,p.1
30JNoL106,29Aprii1977
0JNoL125,19May1977

_L-
e)Winesector
Apackageofmeasures wasadoptedon19Julytoimprovetheprovisions
ofthecommonorganization ofthemarketinwine(Regulations (EEC)
1Nos1675to1679/77).Thisnewsystemincludes :additions and
amendments tothebasicRegulation ,newprovisions onauthorized
oenological practices andalterations tothemaximumtotalsulphur
dioxidelevelsinwinesotherthanliqueurwines.
Theamendments tothebasicRegulation (Regulation (EEC)No1677/77)
include aredefinition ofthesystemofprivatestorageforgrape
mustandconcentrated grapemust,andtheconditions fortriggering
preventive distillation andthedistillation ofwinessuitable for
producing certain winespiritswithregistered designation oforigin.
Furthermore ,inordertomovethesurpluswineonthemarket,the
guarantees introduced in1976,whichprovides forthepossibility
ofdistillation afterprolonged privatestorageofwine,wasbrought
intoforceon12September 1977byRegulation (EEC)No2027/77of
2
12September 1977.
f)Rawtobaccosector
Inthissector,particularly withregardtotobaccooftheBeneventano
variety,inspiteofaverycautiouspricepolicyandanincrease in
"thepremiumforfirst-stage processing ,therehavebeenserious
marketing difficulties inthelastfewyearswhichhaveledto
intervention buyingofsubstantial quantities exceeding thoselaid
downfortriggering specialmeasures (Article 13ofthebasic
Regulation (EEC)No727/70^)designedtorestoreacertainbalance
betweenproduction anddemand.TheCouncilaccordingly adopted
Regulation (EEC)No339/77^whichprovides,inrespectofthevariety
inquestion,forareduction inthequantities whichcanbesoldto
intervention and,atthesametime,forspecialaidperhectareto
planters whoconverttoothervarieties andwhoundertake notto
replantBeneventano foraperiodoffiveyears.
'0JNoL187,27July1977
_OJNoL235,14September 1977,p.6
OJNoL94,28April1970,p.1
4OJNoL48,19February .1977,p.4

-5-
g)ALLsectors
Inviewofthegrowingproblems posedbythestorageandmarketing
outsideitsterritory ofproducts purchased byaMemberState's
intervention agency-theCommunity hasintroduced rulesonthe
1
subject.Regulation (EEC)No1055/77wasadoptedon17May1977.
ItprovidesforpriorCommunity authorization forstorageina
MemberState(orpossibly anon-member country)otherthanthat
wheretheintervention measures weretakenandforexemption from
customsdutyandotheramountsprovidedforunderthecommon
agricultural policyforsuchconsignments atthefrontier .
Thetransport costsresulting fromsuchauthorised storageborne
bytheintervention agencywillbefinanced bytheEAGGF.
1.2New_common_o rganisations_of_markets
Nonewcommonorganisation oftheMarketinvolving financial consequences
wassetupin1977.Itshouldbenoted,however,thatthereareproposals
beforetheCouncilinrespectofthreesectors,namely,sheepmeat ,
potatoes,andethylalcohol.Furthermore ,inconnection withtheprice
proposals forthe1978/1979marketing year,theCommission putforward,
inDecember 1977,special measures forpeasandbeansusedforanimal
fodder.Thesemeasures wereadopted bytheCouncilinMay1978andare
contained inRegulation (EEC)1119/78.
1.3Aaricultural_griçes
a)On26April1977theCouncil,withinanoverallagreement covering
agri-monetary questions aswellasthemarketorganizations proper
tookdecisions onpricesforthe1977/78marketing year.Theaverage
increase incommonpricesdecidedonwasaround3.9%,whereasthat
proposed bytheCommission wasabout3%.
Asregardsagri-monetary matters,adjustment oftherepresentative
ratesmadepossible somereduction ofmonetary compensatory amounts.
ThesewerereducedforGermany,Ireland,France,Italyandthe
UnitedKingdombutremained unchanged forBenelux.
1
?0JNoL128,24May1977,p.1
0JNoL142,30May1978,p.8

-6-
Mattersrelatedtotheannualpricereviewwerealsoadopted,
particularly inthecereals (cf.1.1.a),milk(cf.1.1.b )and
fruitandvegetables sectorsmaintenance ofthemarketing premium
forcitrusfruits.
Suchdecisions aretakenaftertheadoption ofthebudgetforthe
yearinprogress andhaveanappreciable effectuponit,particularly
fromthestartofthemarketing yearsforthevariousagricultural
sectors .
Thefinancial effectofthisoverallagreement onthe1977budget
amountstosome270Mua.Thisexpenditure resultslessfromthe
increase inpricesthanfromtheadoption ofrelatedmeasures,
particularly inthemilkproducts sector.
b)InDecember 1977theCommission putforwarditsproposals onprices
for1978/79,whichalsoincludedrelatedmeasures andmeasures to
improvetheorganization ofmarketsinMediterranean produce.The
mainpointsoftheseproposals wereadopted bytheCouncilin
May1978.
2.Additions totheRegulations governing theEAGGFGuarantee Section
2.1
*
2.1.1Definition ofthe2eneral_rul^es_for_intervention_ ^
a)TheAnnextoRegulation (EEC)No2824/72layingdowngeneralrules
forthefinancing ofintervention bytheEAGGF,whichliststhe
intervention measures tobefinanced,hadbeenbrought uptodate
2neartheendof1976(Regulation (EEC)No2917/76).Towardsthe
endof1977theCommission proposed anotherupdating,adoptedas
Regulation (EEC)No299/78^.
b)Withregardtothegeneralrulestobelaiddownforintervention
operations consisting ofbuying-in,storageandsale,thesame
Regulation (EEC)No2824/72,asamendedon25March1976by
Regulation (EEC)No709/76^providesforthecontinuation until
Λ... .0JNoL298,31December 1972,p.5
,0JNoL333,2December 1976,p.1
,0JNoL45,16February 1978,p.3
0JNoL84,31March1976,p.5

-7-
theendof1977ofthetransitional financial rulesbysector,
someofWnichdatefrombefore1970.Thesefinancial rulesprovide
forsomestandardization infinancing theseintervention operations ,
namely:
-financing atflat-rate amountsofexpenditure incurred by
intervention agencies forphysical operations suchasmovement
intoandoutofsiloandstorage;
-financing atauniforminterestrate(8%atpresent)ofthe
costoftyingupthesumsnecessary forthepurchase of
agricultural produce.
Astheseprovisions wereonlytemporary,theCommission wasboundto
respectitsundertaking toputforward aproposal sothatanew
stagecouldbereachedasfrom1January 1978.
Thisiswhy,on31December 1977,theCommission putbeforethe
Council andtheEuropean Parliament aproposal foraRegulation
layingdowngeneralrulesforfinancing thisintervention bythe
1Guarantee Section .Thisproposal wasadopted bytheCouncil on
2August1978(Regulation (EEC)No1883/78^)andhasledtothe
changesinthefollowing :
-fromtheentryintointervention ,thefinancial consequences of
anylossinqualityresulting fromstorage,willbebornebythe
EAGGF
-thebookvalueofintervention stockscarriedforwardattheend
ofthefinancial yearwillbeadjusted according tothelevelof
thepurchasing price
-suchstocksbroughtforward maybevaluedatalowerratethan
thatcalculated byreference tothepurchasepriceinsuchcases
whereeithergoverning pricewhenthegoodscomeoutof
intervention ,issubstantially lowerthanthepurchasepriceor
therearebudgeting appropriations stillavailable attheendof
thefinancial year.
1
20JNoC21,26January1978,p.6
0JNoL216,5August1978,p.1

-8-
2.1.2Extension_or_adiustment_of _Comtriunit^finaricinq
a)Inordertofacilitate thesupplyofagricultural produceto
Italy,theCouncildecidedin1977,asin1973and1976,by
meansofRegulations ,totransfer 500.000tonnesofcommon
wheatheldbytheGermanintervention agencyand20.000tonnes
ofskimmedmilkpowderheldbyotherMemberStates'intervention
agencies .
Infinancial terms,thesolutionconsists oftransfer at"zero"
prices,wherebytheintervention agencytransferring thegoods
enterstheconsignment asagift;theagencyreceiving thegoods,
ontheotherhand,registers themfortheEAGGFaccounteitherat
theintervention price,iftheproductisstillinstockon
31December,oratthesellingprice.Thevalueoftheproduce
calculated byreference totheintervention priceinrespectof
whichtransferat"zero"pricewasdecidedin1977andinrespect
ofwhicha"transfer "ofreceipts fromsalesfromintervention will
benecessary induecourseisoftheorderof85Muaofwhich67
MuarelatestogoodscomingfromtheGermanintervention agency,
and9MuaeachtogoodsfromtheFrenchandLuxembourg intervention
agencies .
1
«b)On8March1977,Regulation (EEC)No496/77wasadopted;it
amendsRegulations (EEC)No787/69,2305/70and2306/70onthe
financing ofintervention expenditure ontheinternal markets
in,respectively ,cerealsandrice,beefandvealandmilkand
milkproducts.ThisRegulation isintendedtosupplement the
existing onessothat,inindividual caseswhereagricultural
produceinintervention istransferrred fromtheintervention
agencyofoneMemberStatetothatofanother MemberState,the
transport costsincurred bytheseagenciesareenteredintheir
accounts andthusfinanced bytheGuarantee SectionoftheEAGGF
underthearrangements forfinancing thenetlossesofintervention
agencies .
0JL66,12March1977,p.3

-9-
c)Alsoon8March,Regulation (EEC)No565/77wasadopted,
amendingRegulation (EEC)No2305/70onthefinancing of
intervention expenditure inrespectofthedomesticmarketin
beefandveal.Thisisintendedtoharmonise thefinancial rules
inthissectorwiththosealreadyexistinginothersectorsand
meansthatexpenditure onthetransport ofproductsnecessarily
incurredaftertheyareaccepted byintervention agenciesis
financed bytheGuarantee SectionoftheEAGGF,onthebasisof
aCommission authorization .
d)Regulation (EEC)No1386/77,amendingthebasicRegulation (EEC)
No2727/75^inrespectofcereals,extendedfinancingbytheEAGGF
Guarantee SectionforthissectortotheFrenchOverseas Departments .
ItshouldbenotedthattheCommunity provisions onagriculture apply
intheseDepartments andyettheprovisions onfinancing thecommon
agricultural policyapplythereonlyafteradecision onthesubject
bytheCouncilafterParliament hasbeenconsulted .Ingeneral,
suchadecisionistakenwhenthesectorinquestionisofsome
importance fortheeconomyoftheseDepartments ,whichwasthecase
inthepastforsugar,rawtobaccoandpineapples .Inviewofthe
increase inmillingcapacity,itbecamenecessary totakesucha
decision forthecerealssectoralso.
2.1.3Arrangements_for_al locating_the_"dual_rate_ef feet"
Forthe1977financial year,theEuropean Communities' budgetprovides
forseparateallocation ofthefinancial effectsofusingdifferent
conversion ratesformeasures financed bytheGuarantee Sectionofthe
EAGGF.Theratesinquestion are,ontheonehand,therepresentative
ratesusedfortheconversion intonational currencies ofamounts
resulting fromoperations financed bytheGuarantee Sectionand,on
3theother,thebudgetary ratestobeusedwhenconverting expenditure
expressed innationalcurrencies forthepurposeofchargingitagainst
theCommunity budget.Thiseffect,calledthe"dualrateeffect",is
notstrictly speakingagricultural expenditure andisaccordingly ,from
1January1977,enteredseparately frommarketexpenditure .
Withregardtoentryintheaccounts,thegeneralruleprovidesthat
thepayingagenciesdeclaretheirexpenditure innationalcurrency
20JNoL158,29June1977,p.1,0JNoL281,1November 1975,p.1
For1977theseconversions weremadeattheInternational Monetary Fund(IMF)rates

-10-
totheEAGGFinaccordance withthebudgetary nomenclature .Since
thisisreallyabreakdown inaccordance withbudgetheadings within
thesamebudget,withoutoverallfinancial effect,theCouncildecided
1(Regulation (EEC)No474/77)thatthisseparateallocation shouldbe
carriedoutbyamethodtobedrawnupbytheCommission .Thismethod
wasdefinedinRegulation (EEC)No679/77^.
2.2Commission_imglementation_grocedures
Thefollowing changeshavebeenmadetothedetailedrulesforfinancing
intervention expenditure ontheinternal market:
a)AsaresultofRegulation (EEC)No3180/76^adoptedbytheCouncil
on21December 1976andintendedtoharmonize,forallthesectors
concerned (oilsandfats,cereals,rice,pigmeat,beefandveal,
milkproducts andtobacco),themethodofcalculating interest on
fundsimmobilized byintervention agencies forbuyinginproducts
forstorage,thestandard amountforwarehousing costsishenceforth
separated fromthepartcovering theinterest chargesmentioned above.
Asaresultofthisharmonization ,theCommission adoptedon7March:
4-Regulation (EEC)No467/77onthemethodandtherateofinterest
tobeusedforcalculating thecostsoffinancing intervention
measures comprising thebuyingin,storageanddisposal of
agricultural produce;
4
-adecisionaltering thestandard amountsforcalculating warehousing
costs.
b)On31October1977,theCommission adaptedthestandard amountsfor
thestorageandprocessing ofagricultural products boughtinfor
intervention asfixedbytheCommission Decision of15September 1976.
Thisadjustment wasmadewitheffectfrom1January 1977,totake
accountofchangesinthecostsincurred byintervention agencies .
3.Expenditure in1977
3.1General
Itshouldberecalled (cf.SixthFinancial Report,p.7)thatexpenditure
20JNoL64,10March1977,p.2
^0JNoL84,1Aprii1977,p.45
,OJNoL359,30December 1976,p.11
0JNoL62,8March1977,p.9
»
J

-11-
bytheGuarantee Sectionisunpredictable onaccountofagricultural
factors (production ,internal andworldprices)whichinevitably involve
adivergence betweenactualexpenditure andtheassumptions madewhen
drawing upthe1977budget.Moreover,certainnon-agricultural factors
tendtoaggravate theuncertainty ,namely:
a)developments inthemonetary situations whichleadtosubstantial
expenditure occasioned byMonetary Compensatory Amounts andthedual
conversion rate(cf.3.2.CandD);
b)variations inthetimelapsebetweenthecarrying outatransaction
andpaymentbeingmadeinrespectthereofbythepayingagencies can
resultinincrease orreduction ofexpenditure fromoneyeartothe
next.Thistimelapseisaboutonetotwomonthsbutitbecomes much
moresubstantial inItalyparticularly asregardspayments ofaidfor
theproduction ofoliveoil,,thecalving premium andtheaidfordurum
wheat.Forthelattersincethenewregulations havereplaced the
aidcalculated withreference totheareaundercultivation delaysin
makingpayments havebeensubstantially reduced.Forthesethree
sectorstogether thesumasyetunpaidappearstobeoftheorderof
700-800Mua.
TheCommission hadannounced whenputtingforwarditspriceproposals
andrelated measures inFebruary 1977thatasupplementary budgetwould
benecessary .Thenecessary supplementary appropriations werethen
estimated at476Mua,ofwhich354Muawastocoverdevelopments in
themonetarysituation,including theeffectofthedualrate,39Mua
onaccountofdevelopments intheagricultural situation and83Mua
onaccountofthepriceproposals andrelatedmeasures .
Thesefigureshavehadtoberevisedupwardsfollowing theprice
decisions takenattheendofApril1977.On7July1977the
Budgetary Authority adoptedthefirstsupplementary andamending
budget,providing forsupplementary appropriations of714.4Mua
including 399Muafordevelopments inthemonetarysituation,44.9
Muafordevelopments intheagricultural situation,41.9Muaasa
resultofsetting newpricesand228.6Muaforrelatedmeasures.

-12-
Thefirstsupplementary budgetalsoprovided foratransfer,following
partialapplication oftheco-responsibility levy,of219.8 Muafrom
appropriations reserved inChapter 100Ccf.3.2.A.b).The
appropriations forTitles6and7(EAGGFGuarantee Section)were
increased by219.8 Muafrom714.AMuato934.2 Muaaccordingly .
Takingintoaccountthenon-automatic carryforwardof92.4Mua
andatransfer of1.5Muafordenaturing sugarintended foragriculture
(seepart3.2.A.d),appropriations available amounted to7195.5 Mua.
AsshowninTable1,expenditure inrespectofthefinancial year1977
finallyamounted to6662.4 Mua.Thedifference of.533Muabetween
appropriations available andpayments isexplained,inspiteof
supplementary expenditure inthesugarsector,thedairyproducts
sector,andinrespectofproducts outside AnnexII,andaboveall
byeconomies (cf.3.2.A)in
-thecerealssector (available appropriations :634.5 Mua-
expenditure :586Mua)
-theoilsandfatssector (available appropriations :356.6 Mua-
expendiure :305Mua)
-thebeeforvealsector (available appropriations :495.4 Mua-
expenditure :410.8Mua)
Sofarasagri-monetary expenditure isconcerned
-expenditure onMCAsremained belowtheforecast levelforthe
firstsupplementary andamending budget (available appropriations -
970Mua-expenditure :849.9 Mua)largelyasaresultofthe
strengthening ofthepoundsterling inthecourseofthelatter
partof1977.
-thesocalled"dualrate"expenditure alsoremained belowthe
forecast levelsinthefirstsupplementary andamending budget
(available appropriations :603.5 Mua-expenditure :509.5 Mua)
asaresultofthedecrease inotherexpenditure aswellasthe
delayinpaymentoftheaidfortheproduction ofoliveoil,and
thecalvingpremium,wherethisexpenditure hasaparticularly
noticeable effect.

-13-
3.2Comparison betweeninitial1977appropriations andpayments
TheNo1tablecomparesinitialbudgetappropriations withactual
expenditure bytheendofthefinancial year,afteradjustment of
theappropriations available bythefirstsupplementary andamending
budget,drawnupon7July,appropriations broughtforwardfrom1976
andtransfers ofappropriations .Forcomparison,paymentsin1976
arealsoshown.
A.Jhe_agri^cuuraL^_sectors
Adetailedexamination ofthedifferent sectorsleadstothefollowing
observations :
a)Cereals
Overallexpenditure was172Mualessthantheinitialappropriations .
Sincetheharvestwasbelowthatforecast,andthankstoacareful
exportrefundpolicy,refundexpenditure was132Muabwer.The
leveloftheharvestandtheprogressive introduction ofthenew
pricesysteminthissector (see1.2.a)havehadafavourable effect
onintervention buyingandaccordingly onintervention expenditure
(40Mualessthaninitialappropriations ).Itshouldbenoted
thatthisfairlysubstantial discrepancy ispartlycausedbycertain
financial effects (paperprofitonthedualrate)resulting from
transfers atzeropricesbetweenintervention agencies .Reducing
thetimelaginpaymentfordurumwheatmeantthatexpenditure
exceeded theinitialappropriations .
b)Inthedairysector,expenditure amountedto2545Mua.Theinitial
estimates were2219.8 Mua;butinviewoftheintroduction ofthe
co-responsibility levytheappropriations inChapter 62werelimited
to2000Muathedifference of219Muabeingenteredunderchapter
100asprovisional appropriations .
Theco-responsibility levybeingappliedonlyfrom16September 1977
thereceipts takenintoaccountamountonlyto22Mua.Thusitwas
necessary totransfertheamountof219.8MuafromChapter100to
thevariousbudgetary linesinthedairyproducesector.

"TABLE"I
COMPARISON BETWEEN THEINITIAL 1977BUDGET ANDEXPENDITURE
Mu.a.(1)-
Sector*,Initial
^rppropri-
etions
•1977
Jcereais
,-^^d^j|3^uruniwheat
olive.oli
t-.oilseeds/A)iSugar •**"
«"B'èefariaveal
4Pigmeat -
iEagsV-poultreyroeat *
iFruit/vegetables
•Wine "
•Tobacco
;|Ε2Ώ!^ί*β
|Hops
»QmILi^TtHUCTTHI S sJIIRWUI maiDeJiydrated fodderiNOn-^flnriex IIproducts
ICompensatory 1)Acceision
fAmount's2)_Monetary
nEffectofDualRatff
«Total
!*
i-®l.-
138,-
29.-
2.000,-
290,-
118,5
£°."609,-
80,-
85.-
126,5
124,-
206,4
10,-
13,5
20,-
8,-
1.2
15,3
48,-
230,-
582,-
:532.-
6.167,4Expenditure in1977
Total
416.5
170.1
13.9
2.545.0
221.6
83,4
536.7
410.8
31.9
22.3
186.2
90,9
205.3
7,9
13.8
lf.18.2
0.3
12.9
124,1
174.9
859,9
509,5
6.662,4«,3
2,6
38,2
3.J
8,1
«,2
2.6
1.4
3.1
1.7
1.9
Μ£2.6
12,9
7,6
100ofwnic+i
Refunds »1st.cat.•»2nd-cat,
*Werven£2)iinterven .
325Α
13,7
1.237,0
/•°363,3
114,2
24,9
22,3
52,0
1.1
4.5
3.3
124,1
209.8(5:
2.496,8«,7
170,1
0,2871,4
212.4
82,4"
171.8
118.97,0
134,2
89,8
193,74.6
13.8
1«,1
8,2
0,3
12.9
174,9
650,1
509.5
3.512,1
J. JL21,1
436,6
9,2
1,6ιπ,β
7,1
653,4Differences betweenExpenditure 1976
ομμιυ»ο<
I
!Mu.a.cxpcnu.1y1f,
I I
I I
I*II
Total 11
1
1<
5) 1 •
1h•I 1-■I
4 <1k
1
»-204.5–• 1 ■■–
1 it
1*32,9 1■I
495.5!Ia,9
1♦32,1•♦23,3 «114,4 112,1
1-15,11-52.1 »26,9 10,5
1♦545,0•♦27,3•
• Λ2.051,5 ·36,8
-«,4•-23,6I212,6 13,9-35,1•-2*.6-t96,1·1,7
♦216,7'♦67.7 »226,5••4.0-198,2 »-32,5 «643,2 111,5-48,1 »-60,1•28,010,5-2,7»-10,8 113,110,2
♦59,7 «♦47,2 •244,4 14,4-33,1 »-26,7 »172,9 »3,1-1,1•-0,5•223,9•4,1-2,1>-21,0 I10,5 »0,2
♦0,3•♦2,2I19,3I0,3
-3,9«-19,5 »22,7 »0,4
*0,2»♦2,5 »14,5 10,3
-0,9«-75.-»0,6·-2,41-15.7•15,2«0.3
♦76,1 «♦158,5 ««7,5»1,2-75,11-30,0 1359,9·6,5
♦277,9 »♦47,7 «504,8I9,1-22,5t-4,2 »
1 1I
♦495,-•♦8,-·5.570,0 1
• 9
« I
t t■
«
«100
(4)
(5)Mua=millionunitsofaccount. .". ».. ._..
Intervention forwhichunitamountsofexpenditure are!fixedby-Communityregulations
•f?5fI!^fl4tk0ncAr?^ft^n9buyins-'''?/storageanddisposal,expenditure onwhichisTinancedbyEAGGFbymeansofannualaccountsandiscalculated atstandardrates,including production aidforsoya
MCAsinextra-Community tradeareregardedasrefunds.-Τ­
Ι

-15-
Furthermore ,inviewofthetransferofappropriations forwhich
provision hadbeenmadeintheoriginal budgetitmaybeconsidered ,
thatinthissectortheamountbywhichtheexpenditure exceeded
initialappropriations was325.2Mua(2545Mua-2219.8 Mua).
Sofarasexportsareconcerned,theriseinquantities exported
whichresulted fromtheimproved marketinthirdcountries andthe
fallinpricesontheworldmarketitselfcausedtheinitial
appropriations forexportrefundsinthedairysectortobeexceeded
by442Mua.
Withregardtothedisposal ofskimmedmilk,itshouldbenoted
thatexpenditure onaidforskimmedmilkpowderintendedforanimal
feedexceeded theinitialappropriations by119Mua.Expenditure
onthedisposal ofmilkforanimalfeedinliquidformexceeded
theinitialappropriations by48Mua,thusreflecting theeffort
madetoavoidtheexpenseofprocessing skimmedmilkintopowder.
Expenditure onpublicstorage andspecialdisposal measures remained
84Muabelowtheinitialappropriations .During1977,thanksto
theefforts madeasregardsdisposal,intervention stockswereslightly
reduced andlessusethananticipated wasmadeoftheveryexpensive
specialdisposal measures .
Expenditure onintervention forbutterremainedatthelevelofthe
initialappropriations ,including thespecialsaleof"Christmas
butter"attheendof1977,(cf.point1.2.b)whichinvolved
expenditure ofsome50Mua.
Asfortheothermeasures inthissector,mentionshouldbemadeof
thestartofthenon-marketing premiumsystem.In1977,this
involvedexpenditure bytheGuarantee SectionoftheEAGGFof6Mua
representing 60%ofthesumofthepremiumsgrantedin1977.
c)Withrespecttooilsandfats,thedelayinpaymentsforoliveoil
continued in1977totheextentthatpayments weresome57Mua
belowtheinitialappropriations .Fairlyhighpricesontheworld

-16-
marketforoilseeds alsomadeitpossible toreduceproduction
aid,whichmeantsthattheintervention appropriations were
under-used bysome34Mua.
d)Inthesugarsectorthesurplus grewin1977asaresultofan
increaseinCommunity production .Accordingly ithasbecome
necessary toincrease exportstothirdcountries .Asworldprices
werefairlylow,surpluses couldbedisposed ofontheworldmarket
onlywithquitehighrefunds.Expenditure onthissectoraccordingly
exceeded by217Muatheinitialappropriations ,including 201Mua
inrespectofexportrefunds.
e)Inthebeefandvealsector,expenditure in1977(410.8Mua)was
considerably lessthanin1976(643.2Mua)and198Mualowerthan
theappropriations provided for,thankstoanimprovement inthe
marketandareduction inexpenditure onpublicandprivatestorage.
Moreover,thepayments laginrespectofthecalving premium,was
notreduced ashadbeenanticipated whenthetheappropriations were
drawnup.
f)Inthepigmeatsector,owingtothefavourable stateofthemarket
during1977,expenditure onexportrefunds washalftheinitial
appropriations ;expenditure onprivatestorageaidwas23Muabelow
theinitialappropriations .
g)Inthefruitandvegetables sector,largelythroughmassive
withdrawals oforangesfromthemarket,expenditure was60Muahigher
thantheinitialappropriations .
Inthewinesector,ontheotherhand,itshouldbenotedthatthe
expenditure ,at91Mua,wassubstantially belowthatrecordedin
previous yearsandeven33Muabelowtheinitialappropriations .
Thisistheresultofafairlylowharvest.
Itshould,finally,bepointedoi±thatexpenditure onrefundsfor
certaingoodsobtained byprocessing agricultural products exceeded
theinitialappropriations by76Mua.Sincetheserefundswere

-17-
calculated onthebasicproducts (cereals,milkproducts,sugar)
contained intheprocessed products,theyhadtobeincreased by
reference totheworldpricesandrefundsforthesebasicproducts.
B.Accession compensatory amounts
Thesehavefallensubstantially compared with1976(175Muain1977
against360Muain1976),largelyasaresultofafallinimports
particularly ofcerealsandbutterbytheUnitedKingdom.In
accordance withArticle 55oftheActofAccession theseamountswill
nolongerbeappliedafter1January1978,sincetheywereintendedto
compensate,intradeinagricultural products bytheUnitedKingdom,
DenmarkandIreland,forthedifference between commonpricesandthe
priceactuallyappliedinthenewMemberStatesofeachstageofthe
transitional period,whichendedon31December 1977.
C.Monetary compensatory amounts (MCAs)
Thedifference betweentheappropriations provided forinthebudget
(582Mua)andexpenditure (860Mua)ismainlyaccounted forbythe
factthattheassumptions madewhendrawing upthebudgetinSeptember
1976,andparticularly thelevelofMCAsforthevariouscurrencies ,
differed fromwhatactually happened during1977.Inparticular ,the
downward movement ofthepoundsterling sinceSeptember 1976wasnot
followed byachangeintherepresentative rateuntilthebeginning
of1978,whichresulted inMCAratesofupto40%.Astothelira,
although anadjustment initsrepresentative ratewasmadeatthetime
ofthepricedecisions,itsmovement sinceSeptember 1976hasresulted
inMCAlevelswhichsubstantially exceedthebudgetassumptions .Onthe
otherhand,therepresentative ratefortheDanishkronewaschanged,
thusavoidingtheintroduction ofMCAsforthiscurrency .TheMCArates
appliedfortheFrenchfrancalsosubstantially exceededbudget
assumptions .However,sinceFranceisanetexportertheMCAscharged
onexportexceededthosegrantedonimport,whichmadeitpossibleto
limitoverallexpenditure onMCAsto860Mua.

-18-
TABLE2
MCAlevelsappliedintrade
:Ratesusedfordrawing upthe::Ratesrecorded in1977 :
:1977budget (September 1976):
i#uiiciii■>/:Year !:Year :Minima Maxima
:1976/77 ;:1977/78 :
DM +7.5 +3.7 '+7.5 +9.3
BFR/LFR +1.4 0 +1.4 +1.4
HFL +1.4 0 i+1.4 +1.4
FF '-9.6 -4.8 '-13.2 :-19.4
LIT '-10.0 -10.0 1-13.1 -22.5
UKL -25.8 -16.1 -28.9 -38.5
IRL '~21.5 ;-16.1 ;
I I-1.9 :-23.5 ;
D.Theeffectofthedualconversion rate
Alignment oftherepresentative rates(usedforconversion intonational
currencies oftheagricultural monetary amountsexpressed inua)onactuBl
marketratesincreases thedifference betweenrepresentative ratesand
theIMFbudgetary rates(usedwhenchanging expenditure innational
currencies againstthebudgetexpressed inua).Thefinancial effect
ofthisdifference (usually knownastheeffectofthedualconversion
rate)isconsequently increased .Thiseffect,whichuntil1976wasnot
chargedasaseparate itembutwasdistributed amonqthedifferent budget
headings,involved expenditure ofsome40CMuain1976.
Asfrom1977,thebudgethasprovided fortheeffecttobecharged
separately .Anoverallmethodwasused,asindicated in2.1.3.In
1977theeffectofthedualrate,calculated bythisoverallmethod,
reached509Mua,closetothe532Muaprovided forasinitial
appropriations .
Itshouldbenotedthattheeffectofthedualratehasbeenreduced by
thetransfers ofagricultural producetotheItalianintervention agency
underthe"zeroprice"system(cf.2.1.2).Chargingthereceiptsin
lirafromresale,orvaluation asat31December,tothebudgetattheIMF
ratehasinvolved aneconomyonthedualrateofsome50Muafortransfers
decided onin1977.

-19-
Asin1976,forcertainexpenditure in1977,particularly that
connected withMCAstheeffectofthedualconversion ratewasheavily
circumscribed bypaymentoftheMCAsbeingmadebytheexporting Member
State,whosecurrencydidnotgiverisetothiseffect,insteadofthe
importing MemberState,whichwouldotherwise havepaid.Withoutthis
system,theoveralleffectofthedualratewouldhaveexceeded 900Mua.
Thissystem,ofcourse,altersthebreakdown ofexpenditure between
MemberStates.Inordertomakethemagreewiththeexpenditure actually
incurred bytheMemberStates,thetablesinthisreportwhichgivea
breakdown ofexpenditure byMemberStatehavenotbeencorrected forthe
effectofthissystem.Theattachedtabletherefore providesthe
corrections totheexpenditure breakdown byMemberStateresulting from
theapplication ofthissystem.
TABLE3
Corrections tobemadeinthebreakdown ofexpenditure byMemberState
asaresultofthesystemwherebytheexporting MemberStatepaysthe
MCAsfortheimporting MemberState.(Regulation 974/71,Article 2a)
Mua
:MemberStateUncorrected
breakdown of
expenditureCorrectionsCorrected
breakdown of
expenditure
:Belgium ;:418.7 : 40.9 : 377.8 ;
'Denmark
• ■624.8 -196.8 428.0 ;
:Germany : 1245.9 -133.3 : 1112.6 :
]France :1572.4 ;-262.1 ;1310.3
:Ireland !588.1 :-188.0 : 400.1 :
;!taly ; 965.8 +315.4 ;1281.2
:Luxembourg : 8.1 : 0.1 8.0 :
^Netherlands:887.3 '
ι I-163.4 723.9
:UmtedKingdom ::351.4 +669.3 : 1020.7 :
"TotalEEC :
• <6662.4 : 0; 6662.4
•^§£®§!sdown_of _exgenditure_b^_econom ic_categor^
ThetableinAnnex GVIIIshowsthefollowing :
a)Expenditure onrefundscontinued togrowin1977comparedwith1975
and1976.Theshareofthisexpenditure inallexpenditure on

-20-
agricultural markets rosefrom31.3%in1976to44.7%in1977.
Thissubstantial increaseisduetothecontinuing fallinworld
pricesandtotheeffortthattheCommunity hasmadetoincrease
exportsofsurplusproducts (milkproducts andsugar).
b)Intervention expenditure formarketsupportfellappreciably to
represent 55.3%ofexpenditure onmarketsinplaceof68.6%.The
mostsignificant category,compensatory pricemeasures,accounts
for33%ofthisexpenditure .Expenditure onmarketwithdrawals ,
whichhadreached anexceptionally highlevelin1976asaresult
ofthelargequantities offruitandvegetables andwineproduced,
fellfrom6.4%in1976to3.3%in1977.
Withregardtosecond-category intervention expenditure ,covering
thebuying-in ,storage anddisposal ofproducts byintervention
agencies,AnnexGIX(columns 4to6)breaksthisdowninto:
-technical expenses involved inmovement intoandoutof
warehouse,storage andanypackaging orprocessing ;
-expenditure onfinancing atauniforminterest rate(8%)the
costoftyingupthesumsnecessary forbuyinginagricultural
produce;thesesumsareestimated atsome2.300Muaattheend
of1977;thedetails bysectoraregiveninAnnexGX;
expenditure resulting fromthedifference betweenthecostof
purchase onentryintowarehouse andthereceipts obtained from
thesaleoftheproducts instorage.Insomesectors (milkand
beef)thedifference betweenthepurchase andsellingpricesis
quitehighasaresultofspecial measures todisposeof
intervention stocks,inparticular thosedesigned toincrease
consumption ofcertainproducts .
c)Expenditure resulting fromthemonetary situation,particularly
thatonmonetary compensatory amounts,increased from504.7Mua
in1976to849.9MuainT977andnowrepresents 12.9%oftotal
expenditure bytheGuarantee Section.

-21-
Ifaccountisalsotakenofexpenditure ontheapplication of
different exchangerates(dualrate),whichamountedto509Mua
for1977,thetotalofthisexpenditure risesto1.369.4 Mua,or
20.6%ofthetotalexpenditure oftheGuarantee Section.
3.4Agricultural levies
Agricultural levies,andthelevyonsugarproduction arepartof
theCommunities ownresources .Thefollowing table,givenfor
information inviewofthecloseeconomic connection between such
resources andcertainexpenditure oftheEAGGF-Guarantee Section,
showsthatreceipts fromimportlevies,andproduction leviesin
thesugarsectorin1977havegrowncompared withprevious years.
Table4:Leviesunderthecommonagricultural policy
Mua
:Natureof
:agricultural
:levy19721973 19741975 19761•1977 :
:Importlevy :618 ::411 ::255 ::510::1'035::1972:
.Sugarproduction levy ,'181;;98':75;801'128''318•
:Total 799 50933059011632290:
Thesubstantial growthinreceipts in1977iscausedmainlybythe
generallowering ofworldagricultural priceswhileCommunity prices
roseonaverageby3.9%for1977/78(cf.1.1.3)andbytheincrease
inthemonetary compensatory amountscharged.
TheFinancial Regulation of21December 1977requiresthelevies
fromNovember andDecember 1977tobeenteredasreceipts forthe
financial year1978.Nevertheless ,tomakecomparison withother
financial reportspossible,thedatagivenherecoverthetwelve
monthsoftheyear.Theconversion intouaoftheamountspaidin
national currencies hasbeenmadeonthebasisoftheIMFparities,
including thefiguresforNovember andDecember 1977.Ifthis
conversion hadbeencarriedoutfor1977onthebasisoftherate
fortheEUAon30December 1977,thefigureof2.290Muawould
correspond to2.110 MEUA.

-22-
3.5Comgarison_of_the_overaL l_cost_of _the_Guarantee_Sect ion_with_the
Communit^s_gross_domest ic_groduct_at_market_gri ces_^GDP )
Asaresultoftheexceptional increase inagricultural levies,thenet
expenditure oftheGuarantee Section waslowerin1977thanin1976.As
theCommunity'sGDPatmarketpricesalsorosesteadily,thepercentage
represented bythisexpenditure showedaclearfallinspiteofthe
increase inMCAs(cf.Annex GXII).

TITLEII
FINANCIAL ADMINISTRATION
Inthe1977financial year,initialappropriations underTitles6
and7ofthebudget (6.167.4 Mua)provedtobewellshortofrequirements .
Furtherappropriations weremadeavailable byasupplementary budget
(934.2 Mua)andbyatransfer fromChapter 100(1.5Mua).
Takingaccountofnon-automatic carry-over fromthefinancial year1976
(92.4Mua)thetotalavailable appropriations amounted to7.195.5 Mua.
Attheendofthefinancial yearpractically alltheseappropriations had
beenplacedatthedisposal oftheMemberStates(7.171.2 Mua).
Aspecialfeatureofthe1977budget,andtherefore oftheaccounting data
giveninthisreport,isthefactthattheuamentioned ineachofthe
budgetitemsaretheuausedbyoperators underthecommonagricultural
1policy,whereasthetotalsofTitles6and7andthoseoftheMember
Statesareexpressed inIMFua,thedifference beingenteredunder
Article790(expenditure resulting fromtheapplication ofdifferent
exchange rates).
Cashposition
TheMemberStatescommunicate totheCommission eachmonthinformation
prepared bythedepartments andagenciesauthorized tomakepayments
concerning thecashposition,thepayments madeintheprevious month
andestimated expenditure forthecurrentandfollowing twomonths.
Onthebasisofthisinformation theCommission ,afterconsulting the
EAGGFCommittee,determines andpaysouteachmonthtotheMember
Statestheadvancesrequired bythepayingdepartments andagencies
untiltheendofthefollowing month,i.e.thelastmonthcoveredbythe
expenditure estimates .
Obtainedbyapplyingthecoefficients fixedbyCommission Regulation
(EEC)No679/77(0JNoL84,1April1977)toexpenditure innational
currencies .

-24-
Ifthefundsmadeavailable toaMemberStatearelikelytobe
exhausted beforethedateonwhichthenextadvanceisduetobe
made/aspecialadvance maybedecided on.
TheMemberStatesallocate thefundsreceived betweenthepaying
departments andinformtheCommission thereofbytelexeachweek.
4.1Advances_to_Member_States (Annex6V)
Inaccordance withArticles 4and5ofRegulation (EEC)No729/70
andRegulation (EEC)No2697/70theCommission decided onfifteen
advances/twoofwhichwerespecialadvances,inrespectofthe1977
financial year.Thespecialadvances weremadenecessary as
expenditure duringJuneandAugusthadbeenunderestimated .
Regulation (EEC)No1078/77laiddown,inrespectofexpenditure on
non-marketing premiums formilkandpremiums fortheconversion of
dairyherds,that60%shouldbefinanced bytheGuarantee Section and
40%bytheGuidance Section.
Thispartofthereportdealsonlywiththeshareofexpenditure
chargedtotheGuarantee Section.
4.2Funds_avai tableintheMemberStates_during_the_f inancial_year
1Apartfromthebalanceof137.9Muaon1January/theMemberStates
.hadattheirdisposal duringthe1977financial yearadvancestotalling
7.033.3 Mua.
Totalfundsavailable were7.171.2 Mua,ofwhich6.662.4 Muawere
1used,leaving abalanceof508.8Muaon31December 1977.
4.3P££centage_uti lization_of_funds_avai lable
Acomparison ofexpenditure inthe1977financial yearwiththefunds
available toMemberStatesforthatyearshowsthat92.9%ofthefunds
madeavailable wereused(Table5,column h).
SeeTable5andexplanatory notethereto.

TABLE 5
FUNDSAVAILABLE TOANDEXPENDITURE BYMEMBER STATESIN1977
InMua
MemberState Fundsavailable
on1Jan.1977Corrections Corrected funds
available on
1Jan.1977Advances for
the1977
financial ]
yeaKAn.G I)jTotalavail­
ablefor
"1977finan­
cialyear\Expenditure
"between
:1Jan1977
31.12.77Available \
on
31Dec1977Utilization .
ofadvances'
%
(a) (b)(c)=(a)+(b);'(e)=(c)+(d)'(f) ;"(gî(e)-(f)Kh)=f/e.100"
BELGIUM 0.2 (1)-0.1 :0.1 426.1 426.2 ;418.6 |7.6 ;98.2
:DENMARK :0.5 ::(1)+0.1 :0.6 ::630.3 ::630.9 :624.8 ::6.1 :99.-:
IGERMANY ':o-i :■(1)-0.1 p■m■ 11274.6 ;;1274.6 ;■1245.9 28.7 97.7
:FRANCE :0.5 : :0.5 ::1701.- :1701.5 ::1572.4 ::129.1 :92.4 :
IRELAND 0.7 0.7 586.-:586.7 |588.1 ;!-1.4:100.2
:ITALY :99.8 :(2)+31.7 :131.5 :1126.- :1257.5 ::965.8 ::291.7 :76.8 :
'LUXEMBOURG 0.1 0.1 8.5 8.6 8.1 0.5 94.2
:NETHERLANDS :0.2 :0.2 :910.8 :911.- ::997.3 ::23.7 :97.4 :
'UNITED KINGDOM 0.4 (1)+0.1 4.2 370.-:374.2 ;351.4 22.8 93.9
:TOTAL :106.2 :+31.7 :137.9 :7033.3 :7171.2 ;:6662.4 ::(3)508.8 :92.9 :
(1)Changes causedbyroundingoff
(2)Reduction ofAIMAcategory 1expenditure in1976
(3)Thisbalancewillbechangedfollowing corrections tobemadetodeclared expenditure ,particularly byItaly(AIMA)

-26-
TABLE6
AVERAGE RATEOFUSEOFCOMMUNITY FUNDS
INTHE1977FINANCIAL YEAR
Mua
:MEMBER STATEMeanlevelof
Community funds
available inthe
MemberStatesfor
onemonth'sexpenditure
(seeAnnex GVI,lineC)Meanbalance
available after
onemonth's
expenditure
(seeAnnexGVI,
lineE)Meanpercentage :
utilization :
: (a) :: (b):(o=c>-(b).100;
: (a) :
:BELGIUM 39.- : 4.1 :: 89% :
'DENMARK j 54.1 ; 2.1 96%
:GERMANY : 127.6 ::23.8 : 81% :
'FRANCE ; 200.4 ;69.4 65X ;
:IRELAND : 48.9 :-0.1 : 100% :
*ITALY ' 265.2 ;184.7 30% ;
:LUXEMBOURG :: 1.17 !: 0.50 : 57% :
INETHERLANDS ' 84.1 10.1 88% ;
:UNITED KINGDOM :: 41.5 ::12.2 :: 71% :
:EEC. : 862.- 306.8 : 64%

-27-
Acomparison ofthefundsavailable eachmonthintheMemberStates
withfundsremainingafterpaymentofexpenditure (Table6)showsan
averageutilization ofsome64%.
Ananalysis ofthemeanrateofutilisation offundsrevealsanomalies
thatareinthecasesofLuxembourg andtheUnitedKingdomapparent/but
veryrealinthecasesofFrance,andaboveall,Italy.
InLuxembourg therewereexceptionally highbalancesattheendofthe
monthsofJune,JulyandAugustasaresultofthetransfer of12000t
ofbutter,whichbeganon23Mayandwasnotcompleted untilAugust-
September .
TheratefortheUnitedKingdomhasbeensubstantially influenced during
March,November andDecember bythereceiptofMonetary Compensatory
Amountsatalevelverymuchhigherthanthatforeseen.
SofarasFranceisconcerned,theadvances requested substantially
exceeded therequirements atthebeginning andendoftheyear.
AsregardsItaly,therateofutilization isnotwhollysatisfactory ;
itresultslargelyfromthesystemusedfortheadministration offunds
madeavailable tothatcountry.Although thesituation hadimproved in
1975and1976,itgotverymuchworsein1977.Eventhoughthe
financial benefits whichresulted fromtransfers ofproduceinintervention
hasthemselves helpedtoreducethemeanrateofutilization ananalysis
ofthesituation showsthatduringthefirstelevenmonthsoftheyear
Italyhadatitsdisposal averysubstantial workingcapital,sufficient
tocoverexpenditure forupwardsoffiftydays.Accumulated delaysin
thepaymentofclaims (amounting toabout500Mua)andcertain
administrative andfinancial practices havetogethercreatedthis
situation .TheCommission hasstressedtheneedtoreducesuchdelays
butdoesnotwishlaterontoreducetheamountofadvances whichhave
beenrequested,inordernottoputanyobstacleinthewayofimproving
thesituation .
TheCommission hasinmindthepossibility ofchargingtheMemberStates
interestonanyexcessive workingcapitalthattheymayhold.

-28-
5.Management ofappropriations
5.1Summaryofavailable appropriations
Initialbudget 6167400000ua
Firstsupplementary andamending budget:
a)supplementary appropriations 714400000ua
b)transfers fromChapter 100 219800000ua
(provisional appropriations )
Transfer fromChapter 100toChapter 64(sugar)1500000ua
Non-automatic carry-forward from1976to1977
-foodaid,refunds 92355262.43ua
7195455265.43
5.2Transfer ofappropriations
Thedevelopment ofexpenditure duringthefinancial yearledtheCommission
topropose athree-stage transfer ofappropriations betweenthechapters
ofTitles6and7ofthebudget:
a)Thefirstsupplementary andamending budgetincludedthetransfers
betweenchapters givenincolumnbofTable7;
b)AftertheCommission hadreceived thestatements ofexpenditure up
to31.7.1977 andtheestimates forthefollowing threemonths,it
appearedthatappropriations wouldbeinsufficient insomesectors.
On30January 1978aproposal fromtheCommission theCouncil
•decidedonthetransfers neededtomeetexpenditure inthefollowing
sectors;milkanddairyproducts (+30Mua),sugar(+45Mua),
fruitandvegetables (+20Mua)andnon-Annex IIproducts (+60Mua).
InTable7thesetransfers areincluded intheamountsundercolumnc.
c)Inthelightoftotalexpenditure incurred in1977,afinalseriesof
transfers wasdecided onbytheCouncil on17April1978.
Inadditiontothetransfer of1.5MuafromChapter 100,the
transfers referred toinsubparagraphs bandcareshownin
column c.

-29-
TABLE7
Transfers ofappropriations
1000ua
•Chap.
Sector_lQltiâi_^ydget _
for1977
' ιFirstsupp­
lementary &
amending
!budgetOthers^Non-automatic
:carry-over
:ofapprop­
riations from
:1976:Total
:approp-
:ciations
:avaiLable
a b c d■ •
e
:60CEREALS :759000■ ––––-
:+4300 156783+27996• ■
:634513:
!61 ;RICE :29000 -8000 '+1144;22144"
:62 ::DAIRYPRODUCTS :2000000 :+484900 :+51783+63215:2599898:
:63 ^0ILSANDFATS 08500 i+4100 56000 I356600"
:64 ::SUGAR :320000 :+94000 ::+131500 :545500:
!65:BEEFANDVEAL 609000 |-113600 ' ;495400'
:66 ::PIGMEAT ::80000 :+10000 :45000 :45000:
:67i;EGGS/POULTRYMEAT '!25000:25000"
:68::FRUIT/VEGETABLES :126500 :+21000 ::+40000 :187500:
.69:.WINE 124000 ;-15000 ' I109000*
:70::T0BACC0 ::20600 :-3400 ::+6000 :209000:
71 ■FISHERY PRODUCTS !10000;10000-
:72::ALCOHOL :: Ρ>.m. ::p.m.:
:73:|OTHERSECTORS !58000 I-3600 ■ l54400-
:74::REF.ONPROC.PROB.48000 :+80000 :128000:
:75:'ACC.COMP.AMOUNTS 250000 5000D;200ooo-
:78:MCAs :582000 :+388000 : :970000:
;79:|DUALRATE 532000 +71500;603500*
:T0TALS ::6167400 :+934200 ::+150C +92355::7195455:
100Provision for
partial
application of
coresponsibi lity
levy-219800

-30-
5.3Expenditure
5.3.1Expenditure takenincharge
Expenditure declared bytheMemberStatesashavingbeenpaid
upto31December 1977andchargedagainstthe1977financial
yearbytheGuarantee Sectionamountsto6662375553.51ua.
Ofthistotal,598487577.02ua(8.98%)represents netlossesby
intervention agencies and6063887976.49ua(91.02%)export
refunds andotherintervention measures .
Adetailedanalysis ofexpenditure bysectorisgiveninthefirst
partofthisreportinTable 1andinAnnexGVII.Thebreakdown
ofexpenditure byMemberStateisgiveninthetablebelow.
Itshouldbenotedthatthisbreakdown shouldbetreated withcaution
givenontheonehandthedelaysinmakingpayments,andontheother
hand,theexpenditures madebythepayingagencies cannotbeconsidered
asitsown,havingregardtothefactthattheCommunity isasingle
economicentity.Thebreakdown isonthebasisoftheIMFunitsof
accountusedintheCommunity budget,whicharenolongerrepresentative
oftheratesofexchange oftheMemberStates.

-31-
Table8
Breakdown of1977expenditure
1
byMemberStateandtypeoffinancing
Mua
MemberState ,Refunds ,Intervention:Totals :
'"1977 1976 ":%
'1977 "1976"*
"BELGIUM !279.4 1!139.2 :'418.6 ";337.2 !:6.28':6.05*
:DENMARK :229.1 ::395.7 ::624.8 ::432.4 ::9.38::7.76:
GERMANY ;404.3 ;i841.6 '1245.9' ;880.0 ;18.70''15.70'
:FRANCE :664.1 ::908.3 ::1572.4 ::1408.8 ::23.60 ::25.29:
"IRELAND i132.1'i456.0 !588.1'l225.1 ''8.83''4.04'
:ITALY 111.4 ::854.4 ::965.8 ::1053.4 ::14.50 ::18.91:
ILUXEMBOURG ;:1-3:: 6.8 8.1 8.1 0.12';0.15-
NETHERLANDS ::483.6 ::403.7 •:887.3 ::756.8 ::13.32 ::13.59:
.UNITEDKINGDOM' 191.6 ;159.8 ;
» <i351.4 ;
i i468.2 i5.27''8.41*
:EECTOTAL :
■
■:2496.8 ::4165.5 :ι ι
:6662.4 ::5570.0 ::100.–::100.–:
Takingintoaccountneithercorrections forthebreakdown byMember
Stateunderthesystemwherebytheexporting MemberStatepaysMCAs
inintra-Community tradefortheimporting MemberState(seeTable
3,page43),norofthemovement ofreceipts betweenintervention
agencies resulting fromthetransfer ofproducts ata"zero"price.
5.3.2Budgetoperations
Thestatements ofexpenditure byMemberStatesupto31December 1977
werescrutinized bythestaffoftheEAGGFGuarantee Sectionandgave
risetoanumberofcommitments andpayments againstthebudget.
5.3.2.1 Commitments
Amountscommitted globally :
Periodically twotypesofcommitment aremade:globalcommitments for
fundsavailable toMemberStatesforpayments andspecific commitments
bybudgetitembasedonpayments bythepayingdepartments .

-32-
Attheendofthefinancial yearabalanceofglobalcommitments
usuallyremainswhichisusedtocoverpayments chargedinrespect
ofcertainexpenditure whichcouldnotbemadeingoodtime;this
balanceisreleased inrespectofthecurrentfinancial yearand
recommitted inthenextfinancial year.
Amountavailable toMemberStatesatthe
beginning ofthe1977financial year 137851852.52ua
Advances toMemberStatesfor1977 7033318019.20ua
Totalglobalcommitments 7171169871.72ua
Specific commitments bybudgetitem 6662375553.51ua
Balanceofglobalcommitments tobe
released 508794318.21ua
5.3.2.2 Payments
a)1977expenditure
Amountofexpenditure committed bybudget ,,
item 6662375553.51ua
. 1Amountofpayments charged 5663314092.98ua
Thebalance of 999061460.53uaIMF
wascarriedforwardtothe1978financial year,aspecific commitment
(foritsequivalent inEUA.namely609814454.78 EUA),andwillbe
«usedforthesubsequent charging ofexpenditure notified bythe
Italianintervention agencyAIMA,whichissubjecttomodification
afterthereceiptofdataconcerning paymentsactually madeto
beneficiaries .
b)1976expenditure
Adistinction shouldbemadebetweenappropriations automatically
carriedforwardforamountscommitted bybudgetheadingbutnotpaid
andappropriations automatically carriedforwardspecifically for
theGuarantee Sectionforsumsglobally committed foradvances .
1including 92355265.43fromappropriations carriedforward.

-33-
ba)Automatic carry-over ofappropriations (Article6(1)ofthe
Financial Regulation )
Totalappropriations carriedover 529196386.39ua
Payments chargedinrespectof
corrected AIMAexpenditure in1976 500443154.10ua
Appropriations unusedandtherefore
lapsed 28753232.29ua
bb)Appropriations automatically carried
over(Article 111oftheFinancial
Regulation )
Totalappropriations carriedover
globally 56181519.72ua
Commitment andpaymentcharged 3082342.99ua
Forcorrected expenditure byAIMAin
1976whichcouldnotbechargedagainst
theappropriations carriedforwardfor
thispurpose (seeba)owingtothe
absenceoffundsavailable undertwo
budgetheadings
Appropriations unusedandtherefore
lapsed 53099176.73ua
4Aggro£r2ations_carM ed_over
4.1Use_of_aggrogriations_carried_over_from_1976_to_1977
Theappropriations carriedoverfrom1976to1977wereusedasfollows :
Appropriations automatically carriedover
(specific commitment ) 529196386.39ua
Appropriations automatically carriedover
(globally ) 56181519.72ua
2Non-automatic carry-over 92355265.43ua
677773171.54 ua
Payments charged 595880762.52ua
Appropriations lapsed 81852409.02ua
1Corrected datefromAIMAalsoinclude areduction of5999443.50ua
inexpenditure onproduction aidforoliveoilwhichhadbeencharged
againstthefinancial year1976.Thiscorrection canonlybeentered
intheaccount;.at thetimeofclearance (Article 110oftheFinancial
Regulation).Itis,however,immediately takenintoaccountfromthe
pointofviewofthecashposition .
2Expenditure forthefinancialyear1977hasbeencommitted andcharged
againsttheseappropriations inrespectofrefundsforCommunity_jfood
aidunderearlierprogrammes (cereals,riceandmilkproductssectors).»

-34-
5.4.2Çarr^-o\/ers_from_1977_to_1978
Automatic carry-overs amountto:
609814454.78 (=999061460.53 IMFua)
forpayments chargedin1978inrespectofcorrected expenditure
byAIMAfor1977.
TheCommission requested theBudgetAuthority tocarryover23700000ua
ofappropriations outofthe533079711.92uaremaining unusedon
31December 1977.
Theamounttobecarriedovercorresponds tothereceipts fromthe
financial contribution bymilkproducers leviedin1977bytheMember
States.Theexpenditure programme basedonthesereceipts couldnot
bedrawnupintimeandthecarry-over oftheseappropriations to
1978istherefore intended tomakeitpossible tochargeexpenditure
ofanequivalent amountin1978.
5.5Summar^_of _the_im£lementation_of _the_budget
Briefly,implementation ofthebudgetforthe1977financial year,
Titles6and7(EA6GFGuarantee Section),isasfollows:
Appropriations available Csee2.3.3) 7195455265.43ua
Payments charged 5663314092.98ua
1532141172.45 ua
Appropriations specifically committed and
automatically carriedoverto1978 999061460.53 ua
Unusedappropriations
Unusedappropriations whosecarry-over to
1978isrequested533079711.92 ua
23700000.00 ua
Appropriations unusedandtherefore lapsed 509379711.92 ua
Asummaryofthisimplementation isgiveninAnnexGI,together
withtablesontheutilization ofcommitment appropriations ,payment
appropriations andcarry-overs (Annexes GII,IIIandIV).

-35-
5-6PayiD9_2ËEiLÎ.!!!ËDi §
FinancebytheCommunity ofthecommonagricultural marketsand
pricespolicydependsonanumberofagenciesinMemberStates
whoseoperationisgovernedbynational laws,regulations and
administrative provisions .Themostimportantarethepaying
agencieswithinthemeaningofArticle4ofRegulation (EEC)No729/70,
thatistosaydepartments oragencies inMemberStatesauthorized
bythemtomakepayments ofexpenditure bytheGuarantee Sectionof
theEAGGF.Thesedepartments receivethemonthlyadvancesthrough
acentralbodyintheMemberState,carryoutthepaymentsto
beneficiaries andkeeptheaccounts andthenumeroussupporting
documents .
Thesepayingdepartments dependinturnontechnical offices and
othernational orregional departments whichcarryoutvarious
functions inthepaymentofcontrolprocedures .
ThefactthattheCommission hastobaseitsfinancial management on
differing nationalstructures isoneofthedifficulties inrunning
theGuarantee Section.
Althoughcertainchangeswerementioned intheSixthFinancial
Report,therewerenonewdevelopments in1977whichrequiremention.

-36-
TITLEIII
VERIFICATIONS ANDIRREGULARITIES
6.Verifications
6.1Çt§îl§£Î.Ë!Il§£i£5
6.1.1General
Asstatedintheprevious paragraph,theMemberStates'authorities
areresponsible forputtingintoeffectCommunity rulesandthey
keeptheaccounts anddetailed supporting evidencerelatingtomost
EAGGFexpenditure .Forthisreasoninspection visits,whichthe
Commission hasmadeanefforttocontinue anddevelopin1977,are
ofparticular importance .
Inthisconnection ,theCommission stafforganize aseriesofchecks
onEAGGFexpenditure ,initiated eitherbytheauthorizing department
(EAGGFDirectorate oftheDirectorate-General forAgriculture )orby
theFinancial Controller .
6.1.2Di_fferent_t^ges_of.verification
Thesecontrols areasfollows :
-verification whenvalidating anoperation oratagivenperiod
(clearance oftheaccounts),
-spécialenquiries,
-selective controls .
Verifications whenvalidating anoperation andthoseinconnection
withclearance oftheaccounts aretheresponsibility ofthe
authorizing department .
TheCommission hasgivenresponsibility forspecialenquiries to
theauthorizing department andforselective checkstoFinancial
Control^.withoutgivingeitherofthesetwodepartments anexclusive
verification role.
Directorates-General VIandXXoftheCommission worktogether to
carryoutthechecksundersystemswhichvaryaccording tothe
department whichinitiated themeasureandthestaffavailable .

-37-
a)Controls inconnection withclearance oftheaccounts
Thesecontrolsareofasystematic natureandareorganized
bytheauthorizing department .According tothetypeof
control,aprogramme isdrawnupforeitheroneortwoconsecutive
years.
b)Spécialenquiries
Theseareenquiries initiated forspecificreasons,forexample
inindividual caseswhichplaceEAGGFfundsatriskorinorder
toensurecorrectapplication ofcommonagricultural policy (CAP)
provisions withfinancial effects.
c)Selective checks
ThecheckscoveralltheMemberStatesingeneralandaredirected
towardsproblems encountered inaspecificsectororfield.
Furthermore ,DGVI,asdepartment responsible formanagingtheCAP,
undertakes visitstoensurethattheCommunity provisions arecorrectly
appliedandthatCommunity finances areproperly managed.These
visitsarepartoftheday-to-daymanagement oftheCAPandits
financing .
6.2l!]S£ection_yi sits_in_connection_with_the_annual_c learance_of_ac counts
Inspection visitsinconnection withtheclearance ofaccounts are
dealtwithinTitleIV.Altogether ,223workingdayswerespenton
thespotchecking 1973expenditure and26checking 1974and1975
expenditure .Ofthese,202"working dayswerespentbytheEAGGF
and47byFinancialControl.^
6.3§gecial_engui ries_and_visits
TheEAGGFandotherdepartments withintheDirectorate-General for
Agriculture spent83dayscarrying outon-the-spotchecksofvarious
typesandFinancial Controltookpartduring46days.
Itshouldbenotedthaton-the-spotinspection visitsin
connection withagricultural leviesarecarriedoutunderthe
framework oftheCommunity'sownresources .Severalworking
dayswerespientonthespotforthispurpose.

-38-
Visitsaccordingly represented 129workingdays,brokendown
asfollows :
a)Butteratreducedpricesforuseintheconfectionary and
bakingindustry
Forty-eight dayswerespentinconnection withthecaseofthe
importandexportofbutteratreducedpricesforuseinthe
convectionary andbakingindustry (Regulations Nos1259/72and
232/75).
Afterthediscovery ofirregularities intheFederalRepublic of
Germany,theEAGGFtogether withFinancial Controlcarriedouta
seriesofchecksinseveral MemberStates (Belgium,Denmark,France,
GermanyandtheNetherlands )onthewayinwhichtheCommunity
rulesinthissectorweremanagedbytheintervention agencies in
question .
Theresultsofthisenquiryarebeingexamined andcouldgiverise
tosomerecommendations forimproving thecontrolsystemapplied
bytheMemberStates.
b)Tradeinbeefandvealbetween twocountries
Ontheinstigation oftheEAGGFandwiththeparticipation of
Financial Controltwenty-one dayswerespentoncontrolsinthebeef
andvealsectorintheUnitedKingdomandFrance.TheUK
authorities hadcomplained ofthelargenumberofconsignments
ofbeefandvealthattheportauthorities hadbeenobligedto
rejectforveterinary reasons.
TheEAGGFwasconcerned atthepossibility ofirregularities
throughthegrantofMCAsandaccession compensatory amounts,
butnoirregular operations couldbeestablished asaresultof
thecheckscarriedout.Theenquirynevertheless madetheproblem
clearer anditsresults havebeencommunicated tothetwoMember
Statesconcerned .
c)Controlofthequalityofcertainproducts inintervention storage
Thirty-two dayswerespentchecking thequalityofcertain
intervention products storedbytheItalianintervention agency.

-39-
Firstly 24dayswerespentonsampling,sealingandchemical
analysis oftheorganoleptic qualities ofintervention olive
oilboughtinduring1975/6.TheCommission hadheardrumours
6boutthequalityoftheoliveoilinstorage,buttheresults
ofanalysis provedthattheproductcomplied withCommunity
standards .Eightdayswerespentchecking stocksofcereals
whichtheItalianauthorities hadreportedtobedeteriorating
andintakingsamplesforanalysis .
Following thesechecks,theCommission adoptedtwoRegulations
authorizing Italytoinvitetendersforsomeofthequantities
instorageanddecidedtocarryoutanenquiryonstorage
conditions since1976.
d)Foodaid
TheDirectorate GeneralforAgriculture andFinancial Control
devotedsixteenworkingdaystoon-the-spotcheckofone
particular problem.
e)Irregularities
Twelveworkingdayswerespentonthespotinconnection with
casesofirregularity ,mainlytoobtainfurtherparticulars .
6.4 Sélective checks
In1977122workingdayswerespentonselective checkscarried
outundertheauspices ofFinancial Control,towit64bythat
department and58bytheDGforAgriculture .Theycoveredthe
winesectorandprivatestorageofbeefandpigmeat.
a)Winesector (Financial Control 22days;DGforAgriculture 23)
Itwasdiscovered that,insomecases,therelevant Regulations
werenotcomplied withorwereincorrectly interpreted ,particularly
inrespectofprivatestorageaidandvoluntary distillation
TheCommission sentletterstotheMemberStates'departments
concerned todrawtheirattention tosomespecific aspects
revealed bythechecks.

-40-
b)Privatestorageofbeefandpigmeat (Financial Control42days;
DGforAgriculture 35days)
TheCommission staffsuggested improvements asregardsthe
identification ofthemeatinstorageandthecontrolsystems
employed bytheMemberStates'departments concerned .
7.Irregu^aMt^es ^(Guarantee section)
1
7.1ImQlementation_of _Re2ulat2on_(EEC)_No_283 /72
ThisRegulation isbasedonArticle 8ofRegulation No729/70on
thefinancing ofthecommonagricultural policywhich/whilelaying
downtheprinciple ofCommunity financial responsibility forthe
financial consequences ofiregularities ,nevertheless specifies
thattheMemberStatesmusttakethenecessary measures toprevent
andprosecute suchirregularities andtoreaoverthesumsowed.
ThisRegulation wasdescribed inthereportfor1972(Second
Financial Report,point6.1).
TheEAGGFhasalwaysconcentrated onitensifying theapplication
ofRegulation 283/72asfarasthestaffavailable permitsandon
stepping upcooperation withtheMemberStates'authorities .This
isalsoinlinewiththedecisions takenbytheCommission after
reportsdrawnupbytheSpecial Committee ofInquiryhadunderlined
thatthisisthemostimportant instrument atCommunity levelin
the'campaign againstirregularities tothedetriment oftheEAGGF.
Astudyofthecasesofirregularity broughttotheattention ofthe
EAGGFunderthisRegulation showedthatsome80to90%ofcasesare
discovered duringcheckswithinundertakings .
ForthisreasontheCouncil'sadoption ofthe"scrutiny ofcommercial
2documents "Directive ,aftertenmonthsofnegotiations ,isconsidered
animportant stepforward.TheDirective makesthistypeofcheck
of7February 1972concerning irregularities andtherecovery of
sumswronglypaidinconnection withthefinancing ofthecommon
agricultural policyandtheorganization ofaninformation system
inthisfield,0JNoL36,10February 1972,p.1.
CouncilDirective of27June1977onscrutiny byMemberStatesof
transactions formingpartofthesystemoffinancing bytheGuarantee
SectionoftheEAGGF,0JNoL172,12July1977,p.17.

-41-
obligatory fortransactions whichformpartofthesystem
offinancing bytheGuarantee SectionoftheEAGGF.
A"compendium ofirregularities "hasbeendistributed withineach
MemberStatetosomeofficials responsible forchecksandforthe
campaign againstirregularities .
Thenational administrations willbeabletofindinformation initon
thecircumstances ofthecasesexamined andonthemethods usedby
dishonest operators andonthecorrectapplication ofCummunity
rulesinthecasesinquestion .Aguidefordirectcontacts anda
listofnational andCommission officials tobecontacted incase
ofurgency (Article 4ofRegulation No283/72)areattachedtothis
compendium ,whichwillbeupdated bysupplements describing
particularly interesting cases.
7.1.2Communication_of_thejarovisi^ons_Iaid_down_by _Iaw^_reguIation_or
£^2iDi§iE§tive_a£tion_and_a_list_of theauthorities andbodies
EËEE2G£l^iê_Î2!I_î.!lË_EîlËÏËD£i2Q_ËD^_E!l2§É£yî.i2D_2Î_i!l£®3yi§£2£iê §
(Artiçle_2_of Régulation 283/72)
AtaseminarheldinOctober 1977Ccf.7.1.7)aworking paper
concerning thenational authorities andbodiesresponsible forthe
prevention andprosecution ,ofirregularities tothedetriment of
theEAGGFwasbrought uptodate.Reference wasmadetothe
provisions laiddownbylaw,regulation oradministrative action
previously communicated bytheMemberStatesinindividual cases,
although theCommission staffhavenotyetbeenabletocomplete an
analysis ofthisdataowingtoothermoreurgenttasksinthecampaign
againstirregularities .
7.1.3Communication_by_Member_States_of_a_list_of_irregular ities_(Articles
3jand_5_of_Regulati£n_283 /72)
Although theinformation systemworkswellingeneral,timelimits
forthesubmission ofreturnsarenotalwaysobserved .
TheMemberStatesmustalsogivemoredetailed information sothatcases
maybeanalysedindepth.TheCommission staffhaveonseveral
occasions madethisrequestofMemberStates.

-42-
7.1.4Communication_of_^rreguIarities_IiabLe_to_have_immediate_effect
lD_2itl®!I_!3®!D^®Il_§tit®§_§Dd_of_new_fraudu Lent_gractices_(ArtieLe
4_of_Re2uLation_283 /72)
Therapidexchange ofinformation betweennational departments and
betweenthemandtheCommission isnowoperating asaresultofthe
instructionson contactinthecompendium ofirregularities (cf.7.1.1).
Unfortunately ,addresse.es sometimes donotalwaysreact,oradditional
information issentonlyafteranappreciable delay.Suggestions
forimprovement arebeingstudiedbytheEAGGFIrregularities' Group.
Annex GXIValsoshowsthattherearedifferences intheMemberStates'
readiness tomakeuseofArticle 4.
Somenewcaseswerebroughttolightbytherapidinformation system
in1977.Someofthemlatergaverisetocommunications underArticle
3wheretheywerethesubjectofprimaryadministrative orjudicial
findings offact.
Inthebeefandvealandpigmeatsectorscaseswerenotified,asin
previous years,oftheuseoflostandstolenrubberstamps,false
declarations ofweightorqualityandforgedveterinary orimport
papers.Clandestine trafficbetweentwocountries toqualifyfor
monetary compensatory amountscontinues inspiteoftherecent
measures takeninthepigmeatsector.
Onecasehasbeennotified inthecerealssector,alsoconcerning a
falsedeclaration ofquantitytoobtainpaymentofahighermonetary
compensatory amount.
Thefollowing wereobserved inthedairyproducts sector:
-falsetariffheadingonimportintoaMemberStateformaltedmilk
powderfromanon-member country;riskofsetting upto-and-fro
trafficeitherintheoriginalstateorafterextraction ;
-falsetariffheadingforachocolate-flavoured mixtureforusein
automatic drink-vending machines;
-falsecustomsandsalesdocuments toreceive MCAsontheimportof
emptycontainers statedtocontain 18000kilosofbutter;

-43-
-changeofdestination of200tonnesofbutteroil,apparently
intended asfoodaid.
Onecaseconcerning pigmeatandpoultrymeat forthevictualling of
ships,butwhichcouldequallywellhaveoccuredinanyothersector/
hasalsobeennotified .Thoseresponsible arebeingprosecuted in
theircountryandthecaseisunderstudybytheEAGGFIrregularities
GroupandotherCommission departments .
7.1.5.Inltlation_of_admini strative_enguiries_at_the_reguest_of_tlie_Commiss ion
iArtlcle_6j)f_Re2ulation_283 /72)
Inaccordance withArticle 6ofRegulation 283/72anadministrative
enquiry wassetupattheCommission 'srequestintoacaseofexport
ofsoftcheesesbetween twoMemberStates.Theseexportswere
exempted frompaymentofMCAsonthebasisofpredated contracts .
Inonecaseconcerning thenon-grant ofMCAsinthepigmeatsector
(acasenotified totheMemberStatesinaccordance withArticle 4of
Regulation 283/72),theCommission madeuseofthe"pre-6"procedure
wherebyinformation isrequested fromtheMemberStatesaboutsuspected
irregularities orattempted fraudbeforeaformalenquiryunderArticle
6isinitiated .Communications inaccordance withArticle 4,which
weremorefrequent,madeitpossibletothrowlightrapidlyon
individual problems withoutusingthatprocedure veryoften.
Thefollowing questions havestilltobesettled :
-premiums forslaughtering heifers (see7.1.9);
-acaseoffraudulent trafficinbutterattracting consumer subsidies .
7.1.6Convenin2_of_information_meetings_to_assist_Member_States_(Arti cle
7G)_of_Regulation_283 /72)
Twomainmeetings ofthe£AGGFIrregularities Grouptookplacein1977.
Itwasnotpossible toholdothermeetings,partlybecausetheEAGGF
staffhadtoconcentrate onpriority worksuchasthe"controlof
commercial documents "Directive andtheCompendium ofIrregularities .
However,theindividual problems studiedduringthesemeetings areof
someimportance ,i.e.:
-studyofirregularities notified inthecerealssectorwithrespect

-44-
tospecial Bintervention measures forprivatestorage;
-assessment oftheextenttowhichtheprovisions ofArticle 4of
Regulation 283/72areapplied;
-transmission ofdocuments withinpayingdepartments ;
-themeansatthedisposal ofpayingagencies forchecking the
authenticity ofdocuments ;
-thepossibility ofirregularities inthefisheries sector.
However,inspiteoftheimportance ofthesemeetings andtheneed
forthem,theEA6GFfeltthatfurther workwasnecessary .In
additiontotheplenarysessionsitwasdecide^foratrialperiod,
toholdrestricted meetings atintervals fornationalofficials
responsible forinvestigations ofirregularities .Confidential
exchanges oftechnical information onthemostrecentirregularities
couldmoreconveniently bemadeinthiscontext.
7.1.7Community measuresrelatingtothetraining ofEAGGFinspectors
CArticle_7(3)_of_Regulation_No_283 /72)
ThegeneralbudgetoftheEuropean Communities has,since1976,
included anArticle 315"training ofnationalofficials responsible
formonitoring EAGGFexpenditure "(cf.alsoChapterIIoftheCouncil
Resolution of16December 1975).
4
Aseminartookplacefrom29Juneto1July1977,organized bythe
Directorate-General forAgriculture together withtheDirectorate -
GeneralforFinancial .ControlandtheAdministration oftheCustoms
Union,onthedocumentary proofnecessary forvalidation ofrefund
payments .
TheDirectorates-General forFinancial ControlandforAgriculture
alsoorganized,on20and21October1977,aseminaronthestructures
andorganization ofthenational departments formanagement and
control oftheEAGGF.
Duringthesetwoseminarstherewerepresentations bynationalofficials
responsible fordrawing upandsupervising controloperations ,followed
bydiscussions .
0JNoC298,30December 1975,p.1

-45-
7.1.8£2§§l!2Í®_Í22Et!2ÍÊ§_ÍQ_Ç2!!!!!!!yE!Í*Z_.kÊ9l§.kãtÍ2E3_í £rticle_7(4^)
Inaddition tothemeasures appliedwithaviewtothecontinuous
improvement ofCommunity agricultural rules,Regulation No283/72
makesprovision forthereporting ofloopholes .UnderArticle7(4)
oneloophole wasnotified in1977.Itconcernspossibleirregularities
inrespectofgoodssubjecttoamarketorganization whichars
transported undertheCummunity transitsystem.Itisbeingstudied
bytheCommunity Transit Committee .
7.1.9C2mmunicati2D£_lD_!l§§2t££_2l_i££§9yi§£ill®§_^§i2y_l_QQ9_y§_l l£i£
11_2f_Regulation_283 /72)
TheMemberStateshavebeenrequested tocommunicate casesof
irregularities concerning sumsbelow1000uathattheymayhave
discovered inthesectorofpremiumsforbeefandveal,since
irregularities inthisareahavebeendetected inoneMemberState.
7.2Jhe_cases_of_i££eg^ul^a£^t^
7.2.11977
1Ofthe169casescommunicated ,70concerned beefandveal,26wine.
123pigmeat,22dairyproducts,16cereals,9non-annex IIproducts,
5eggsandpoultrymeat ,2fisheryproducts,2oilsandfats,1fruit
andvegetables and1flax.
Sixofthecasescommunicated concerned severalsectors.Ofthe
caseslisted,somealsoconcerned MCAs(81cases)oraccession
compensatory amounts.
7.2.2Exportrefundsand_com£ensatory_amounts
Themostcommonfraudsinrespectofrefundsstillconsistoffalse
declarations astodestination ,nature,quantity,qualityortariff
heading.
mainlyinvolving monetary compensatory amounts

-46-
Thecontrolarrangements inrespectofcompensatory amountshave
beenimproved,particularly theprocedures forlevyonexport.The
problemcausedbythedifferences intheratesforcurrencies is,
however,stillworryingsincethesumsinvolvedarestilltempting
foroperators .
7.2.3 Market_intervention_measures
Inthewinesector,26casesinvolving restorage aidorprivatestorage
werecommunicated byoneMemberStatefollowing enquiries .Inthe
milkproducts sectorsalesofbutteratreducedpricesorfalse
qualitydeclarations werediscovered .Inthecerealssectorthere
arestillsomecasesdatingfrom1973concerning denaturing premiums .
Intheoilsandfatssectortherewerefalsedeclarations ofarea
orofolivegrovesinproduction .
7.2.4flQancial_extentof_theirregularities recorded andcommunicated in
accordance_w]_th Articles 3and_5
Thenumberofcasesofirregularities in1977amounted to169,
representing asumof8.5Mua.Table9shows,overaperiodof
years,thenumberofcasesofirregularities ,theamountsinvolved
andthesumsrecovered .
AnnexGXIIIgivesabreakdown ofthesecasesbyMemberStatesand
bysectorfor1977.
Thereissomereduction inthenumberofcasescompared withthe
previous yearbutthis .isunfortunately counterbalanced byanincrease
of42%inthesumsinvolved .
Attempted irregularities arealwayscarefully studiedandcanbe
included inthecompendium ofirregularities iftheyareofspecial
interest buttheyarenotincluded inthetablessincetheyhaveno
financial implications .
7.3!!2®_§Ee£iai_Committee_of_Inguir ^(SCI)
TheSCIcontinued itsworkin1977,concentrating onthewinesector.
ItsreportontheEAGGFGuarantee Sectioninthissectorwascompleted
attheendof1977.

TABLE9
EAGGFGUARANTEE SECTION-CASESOFIRREGULARITY 1971-1977
ANDSUMSRECOVERED
(Amountsinua)
I1971 1972 1973 1974 :1975 :1976 :1977(1)::Total I
.J_9-7_1'_19_7Z___„J
cases:AmountNoof
casesAmountNoof
casesAmountNoof
'casesAmount :Noof
'casesAmount :Noof.
cases'■Amount
L-–Noof'
cases':Amount ■Noof,
cases':AmountJ
ICasescommunicated83234436;20207756251fl399829;93£721165139 ;£547582;
i I2575984664169853941973733504657
ofwhich,
recovered7-8027225146959813759846646849564818340651042211059451580188334=14796548
(1)SeeannexGXIIIp.32,forfulldetailsofirregularities communicated in1977.I
x

-48-
Therecommendations inrespectofcontrol andintervention in
thewinesectorconcern :
-makingcontrols morethorough andselective,
-betterinforming andcoordinating national administrations ,
-re-examining privatestorageaid,
-theproblems posedbyaidtovoluntary distillation .
Initial workonthecerealssectorhasalsobeenundertaken .

-49-
TITLEIV
AUDITANDCLEARANCE -ANDCLOSURE OFTHEACCOUNTS
8.1Cnaracteristics
Itisrecalledthatthepayments carriedoutbytheCommission /as
referred toin5.3,arewithoutprejudice totheannualauditand
clearance ofaccounts .Forthispurpose,theCommission receives
annualstatements whicharemoredetailed thanthemonthlystatements .
Scrutinyoftheseonthebasisofthedocuments provided followed by
inspection visitsgivesrise,afterabilateral andthenmultilateral
procedure intheEAGGFCommittee,toCommission Decisions forthe
clearance ofaccounts .
TheseDecisions constitute recognition ofthecorrectness ofCommunity
expenditure paidoutbyMemberStates,subjecttosubsequent appealto
theCourtofJusticeorcomments bytheBudgetAuthority atthetime
whentheCommission 'smanagement issubjecttotheannualdischarge
procedure .
Theauditandclearance ofaccounts issubjecttoaconsiderable backlog
owingtothelargenumberoftypesofexpenditure ,thevolumeand
complexity oftheexpenditure ,whichthemonetary situation hasonce
moreincreased,theextentoftheCommunity legislation implemented ,
thenumberofnational departments involved andtheparticularly acute
shortage ofpersonnel inthissectorofCommunity financing .The
priority grantedtocompletion ofworkonclosureoftheaccounts for
periodspriorto1January 1971hasmeantthattheCommission couldgive
approvals inrespectoftheseperiods on20December 1977.Atthesame
time,andwithoutwaitingforthefinalclearance ofthe1973accounts,
efforts havebeenconcentrated fromsummer1977onverification for
the1974and1975financial yearscombined .
8.2Periods_grior_to_1_January_1£71
8.2.1Aggroval_deci sions
Theaccountsrelatetofourperiods-1967/68,1968/69,secondhalfof
1969and1970-whichhadalreadygivenrisetopayments onaccount
effected bypaymentscalculated onthebasisofprovisional accounts,

-50-
andtobeincluded eventually inthefinal.Afterageneral
reportwassentattheendof1976tothesixMemberStatesconcerned
forcomments,twoimportant additions weredrawnupinAugustand
October 1977totakeaccountofthefollowing newfacts:
a)supplementary oramending statements sentinbysomeMember
States,particularly concerning payments orrecoveries entered
intheaccounts in1976and1977inrespectoftheseperiods;
b)comments madebytheMemberStatesduringthefirsthalfof1977
whichhaveledtheEAGGFdepartments ,afterthorough reexamination
(including twofurtherinspection visits),torevisetheirposition
onseveralpoints (including packaging costsinBelgiumforpublic
storageofbutter,calculating thelossesanddepreciation inN
Germany oncerealsstoredandrefunds onItalianexportsofcommon
wheattoEgypt)i
Afterexamination intheExperts 1groupandintheEAGGFCommittee on
10November 1977,theCommittee wasconsulted on22November and
13December onthedraftdecision .TheCommission hadtogiveits
approval on20December 1977.Totaleligible expenditure forallfour
periods was7006133244.14ua;takingaccountoftheadvances already
paid,thebalanceofexpenditure takenintoaccountforeachofthe
periods underconsideration isasfollowsinua:
:Period Totaleligible
expenditureAdvances Balance
;1967/68
1968/69
2ndhalf1969
19701068308431.11
1698444736.35
1710562'716.86
2528817359.82935157869
1478365223
1224150378
1655203701133150562.11
220079504.35
486412338.86
873613658.82
;TOTAL ;
•... ■\1006133244.14 |
» i:5292877180|!1.713256064.14 |
Thebalanceofexpenditure notcovered byadvances isthussome
24%overallofeligible expenditure ;theapproval decisions,however,
relatetoalleligible expenditure .

-51-
3.2.2Corrections_to_the_exgend2ture_fi_2ures
Non-eLigible expenditure amountsto41047385.05uaandthus
represents some0.6%oftotalexpenditure putforwardforapproval .
Itbroadlyresultsfromthedifference betweenanoverallreduction
inexpenditure ofsome56Muaandanincrease inexpenditure of
some15Mua.
Themainpositivecorrection isexplained bythefactthatrepayment
ofnetlossesonbutterwaslimitedin1967/68toeitheractualcost
offlat-rate cost,whichever wasthelower;aftercorrection itisnot
theactualcostwhichiseligible buttheflat-rate expenditure
(France :+15.1Mua).
Refusalofexpenditure represents overall some56Muaforthefour
periodsandismainlyaccounted forbythefollowing cases:
a)Insufficient valueoftheskimmedmilkpowderstockcarried
forwardcalculated onthebasisofthebuying-in priceofone
qualityandnottheintervention pricesapplicable tothevarious
qualities present (France:carryover on29July1968-6.5Mua,
carryover on1July1969-3.9Mua);
b)Expenditure stilltobepaidandincluded indeclarations of
expenditure (Italy-8.8Mua);
c)Expenditure declarations notinconformity withtheaccounts
(inFrance :denaturing ofcerealsandcarryover payments +0.1
Mua,aidforskimmedmilkforanimalfeedandcaseinmanufacture -
6.6Mua,refundsforexportofnon-Annex IIproducts-0.7Mua;
inItaly:production refundoncereals,tobaccoandnon-Annex II
products-1.5Hua).
d)Omission ofacorrective factorfornetlossesonbutterlaiddown
inArticle4(2)(g)ofRegulation No2306/70totakeaccountof
salesofbutteratreducedprices (France-6.9Mua);
e)Omission inthenetlossesaccounts formilkproducts ofa
corrective factorlaiddowninRegulation No2306/70foroneMember
State(application toFranceofArticle4(1)(j)and4(2)(f)for
butter:-0.9Mua,andofArticle5(1)(c)and5(2)(f)forskimmed
milkpowder:-4.2Mua);

-52-
f)Expenditure declaredfor67/68andagainfor68/69(denaturing
ofsugarinGermany-2.7Mua,entrycostsforpublicstorage
ofbutterinFrance-2.0Mua);
g)Incorrect application offlat-rate amountsfordryingcereals
(Germany-2.5Mua),entryandremovalofsugar(Germany-0.1
1
Mua),andstorageofcereals (Italy+0.2Mua);
h)Exceeding thedeadline of21October 1970laiddowninRegulation
1308/68forthesaleofbutteratreducedprices(Germany-1Mua,
1France-0.6Mua,Netherlands -0.4Mua);
i)Underestimation ofreceipts fromsalesofintervention butterin
France,particularly inthecaseofsaleatreducedpricesunder
Regulation 1308/68(-0.8Mua)andinonecaseofaccident
(-1.1Mua);
j)Effectofanincorrect calculation ofaveragestockonstorage and
financing costs(France;netlossesbutter-1.1Mua,netlosses
skimmedmilkpowder-0.5Mua);
k)Non-application oftheagreement of18December 1974onmonetary
parities (France :netlossescereals-1.2Mua,netlossesbeef
andveal-0.2Mua);
I)Non-eligibility oftherefundspaidforcaseinexported between
29July1968and1April1969intheabsenceofaCommunity refund
-rate(France-1.2Mua);
m)Incorrect application ofthetolerance andofthecalculation of
lossesoncereals (Germany-0.2Mua,Italy-0.3Mua);
n)Incorrect rounding-off oftherefundrateforstoragecostsinthe
sugarsector(Germany-0.3Mua);
o)Declaration ofremovalcostsforcereals whichhadalready been
enteredintheaccounts andfinanced underfoodaid(Italy-0.2Mua);
Thereasonsfortheserealignments mayberoughlycategorized asfollows :
1.Non-application orincorrect application ofCommunity provision
accounting for33.7Muainrespectof:
Withoutprejudice tothedecisionoftheCourtofJusticeofthe
European Communities incase11/76(Netherlands )andcase18/76
(FederalRepublic ofGermany)

-53-
-timeLimits(2Mua);
-fixingratesforcasein (1.2Mua)
-application oftheflat-rate amounts (6.2Mua);
-valueofpurchases,sales,carryovers (12.3Mua);
-application ofcorrective factorsinrespectofmilkproducts
(12Mua).
2.Discrepancies recorded inentering payments amounting to22.4Mua
asaresultof:
-failuretocorrespond withtheaccounts (8.7Mua);
-expenditure declared butnotyetpaid(8.8Mua);
-expenditure declared asecondtime(4.9Mua).
8.2.3IndividuaI_cases_of_exgenditure_refused_fo11owing_naturaI_disasters
Onecaseofrefusalofrelatively minorexpenditure (28000ua)not
listedaboveshouldbepointedoutbecauseitillustrates theproblem
oftheCommunity'sfinancial responsibility inthecaseofsome
naturaldisasters .Thiswastheearthquake inSicilyon14January 1968
whichcausedthelossofsome200tonnesofdurumwheatinintervention
andmadeitnecessary totransfer afurther 4650tonnes.Underthe
existing financial rules,twothirdsofthisexpenditure wascovered
bytheEAGGF,i.e.
-paymentofallthetransport costsfoundnecessary ;
-paymentofpartoftherecovery costsproportionately tothe
flat-rate amountsforentryandremoval.
Thevalueofthegoodslostisnoteligible underexistingrulesand
hasaccordingly notbeenpaid;theCommission preferred,intheabsence
ofathoroughdiscussion intheCouncilofallaspectsofthequestion,
nottofinanceallthedamagethatintervention stocksmightsuffer
throughnaturaldisasters .
8.2.4Adjustment s_to_the _levies
Theleviesdeclared byItalyinthesecondhalfof1969havebeen
increased byapproximately 17000millionlirecorresponding toan
increaseinthefirstpartofthecontribution (90%ofthelevies)
by+24.5Mua.
Thisreferstoreceipts cominginafter31December 1969whichthrough
amisinterpretation ofRegulation 728/70/EECwerenotdeclaredinthe
requestforapproval .

-54-
8.2.5 Clearing
Itisrecalled that ,inthefinancing system forperiods prior to
1January 1971 ,theannual approval decisions bywhich theCommission
fixes theamount oftherepayments granted areimplemented by
clearing ,that istosaybybalancing therepayments granted and
the contributions due from Member States .
Theresultant balances arecredit ordebit according towhether the
repayments exceed thecontributions ornot .TheCommission receives
payments from thedebtor Member States andtransfers them tocreditor
Member States .
Bearing inmind theclearing already carried outunder thedecision
foradvances andtheadvance payments made inapplication ofthe so
called "aggregation "resolutions (Council Resolutions of21April 1970
and30May 1972 )thepayments outstanding amount to46885372.20 ua
asshown inthe table below :
Balances remaining tobepaid
for final closure ofthe accounts
mua
Member State debit balance crédit balance
• <
:BELGIUM : 3434 000.27 :
*GERMANY ! 2439 303.95
:FRANCE : : 29701 530.24 :
!ITALY ' 39996 439.56 '
:LUXEMBOURG :: 1015 628.42 :
"NETHERLANDS 17183 841.96
TOTAL ' 46885 372.20 '
• ι46885 372.20 "
Aproposal foranadhocFinancial Regulation wasputbefore the Council
bytheCommission on13October 1977 inorder both tomake itpossible
tocarry outtheclearing forthese four periods andtofind asimpler
waywithin thebudget tobring thesituation back tonormal after
application ofthe "aggregation "Resolutions .
1This Regulation wasadopted bytheCouncil on6June 1978 thebalances
could bepaid during thesecond half of1978 .

-55-
8.3Accounts_for_the_1971_and_1972_f InanciaL_^ears
Theproceedings intheappealsenteredbythreeMemberStates
(Germany,France,TheNetherlands )following theclearance decisions
of2December 1975wentforwardin1977aftertheyhadbeensuspended
in1976inthehopeofcomingtoarrangements astoprinciple and
reaching settlements whichwouldmaketheappealsunnecessary .The
judgments (Cases11/76,15/76,16/76and18/76)areexpected during
1978.
8.4£ccounts_for_the_1973_f;[nanciaI_year
Theinspection vists,whichforthefirsttimeinvolved thenine
MemberStaes,startedinMay1976andwereactively pursueduntil
theircompletion inJuly1977.Adozenmissions wereaccordingly
accomplished in1977representing altogether 223working dayson
thespot,including 190workedbytheEAGGFand37byFinancial
Control .
Thefactthattheinspections covered alongerperiodthanwasoriginally
estimated andthattheirnumbergrewtoover20isduetothedifficulties
1encoutered ,alreadydescribed inpartintheprevious report,which
necessitated furthervisitsinseveral MemberStates.Moreover,some
questions ofinterpretation ,particularly inrespectofthetypeof
proofrequired toshowthatgoodshadarrivedattheirdestination in
thecaseofexportwithvariable ratesofrefund,required considerable
workbothtoreachanexactdefinition ofthecontentofCommunity law
andtobringabouttheadjustments necessary whentheproofputforward
wasnotacceptable .
Aseriesofinter-departmental meetings withintheCommission and
bilateral meetings withseveral MemberStateshavemadeitpossible to
approach asolutiontothisquestion andotherswhicharestillpending;
however,sincesomeofthesequestions arecomparable tothoseraised
inconnection withclearance oftheaccounts for1971and1972and
whichhavebeensubmitted totheCourtofJustice,itmayunfortunately
bepossibletoreachadefinite conclusion onlyafterthejudgmentin
thesecases,expected duringthesecondhalfof1978.
seepoint6.2.2(SixthFinancial Report).

-56-
Itshouldalsobeemphasised thattheworkinprogress hasbeen
generally sloweddownor^hinderedbyloopholes whichhavealready
beenpointedoutmanytimes,particularly inrespectof:
-administrative andaccountancy techniques whichinsomecasesdo
notallow,forreasonsconnected withthedesignation ofproducts,
ofaccesstodocumentary evidence oraccountancy procedures ,
verification intheaccounts ofthecorrectness ofMemberStates'
declarations ;
-theinadequacy ofinternal checkscarriedoutbynational
administrations inrespectofCommunity expenditure andthelack
ofinformation fortheCommission staffontheverifications carried
out,whichdeprives thembothofaccesstofactorsessential for
assessment andofsubstantial assistance ;
-theinadequacy ofthereports madetotheCommission onthemanagement
ofCommunity fundsbypayingagencies,wherebytheEAGGFdepartments
arekeptinthedarkastotherealproblems involved inrunningthese
agencies .
Inviewofthesemanydifficulties andthesmallstaffavailable,the
workinprogress willprobably notenabletheCommission totake
decisions onclearance ofthe1973accounts beforethefirsthalfof
1979.
8.5Accounts_for_197A^_1 975_and_1976
a)Whileworkcontinued onclearance ofthe1973accounts,documentary
verification inrespectoffinancial years1974and1975combined
beganinmid-1977 andinspection visits,representing 26working
daysincluding 16bytheEAGGFand10byFinancial Control,took
placefromNovember .Thisworkwillcontinue throughout 1978and
inearly1979;itshouldleadtodecisions onclearance ofthe
accounts bytheCommission attheendof1979.
b)Asforthe1976accounts,although norequestwasmadetothe
FundCommittee foranearlierdatethanthatagreedfortheprevious
year(October1976forthe1975financial year),thetablefollowing
nevertheless makesitclearthatonlyfiveMemberStateshadput
forwardtheirrequestbyOctober1977(including fourforpartof

-57-
theirdeclaration only).Inviewoftheprocessofcatching
upnowunderway,suchdelaysarelikelytohamperthefuture
workofauditandclearance ofaccounts .
TABLE10
MemberState Dateofdispatch ofrequests
forauditandclearance
Belgium 28.10.1977
18.2.1978 (supplement )
IDenmark 28.10.1977
Germany 9.12.1977 (refunds )
10.3.1978 (intervention )
France 23.2.1978
Ireland (1)
Italy 12.5.1978
Luxembourg 27.9.1977
Netherlands 27.10.19 77
30.3.1978 (supplement )
UnitedKingdom 15.8.1977
2.2.1978 (supplement )
DepositoftherequestsisexpectedinSeptember 1978

-58-
TITLE V
FINANCING OFCOMMUNITY FOODAIDFORPRODUCTS SUBJECT TO
COMMON ORGANIZATION OFTHEIRMARKETS
9.Community foodaidintheformofproducts coveredbycommon
organization oftheirmarketsisfinanced underthesamerules
asthoseapplying totheGuarantee SectionoftheEAGGF.
9.1Characteristics
9.1.1Implementation
1Theimplementation ofthesupplyagreements concluded bythe
Community withtherecipient countries oragencies callsfora
mobilization procedure effected withintheframework ofthe
commonorganization ofthemarket.Thisprocedure isimplemented
bythenational intervention agencies andisbasedontheprinciples
ofthefreeplayofsupplyanddemand (tendering procedure).Inthe
caseofurgentdeliveries however,privatecontracts areamore
efficient meansforcarrying outmeasures quickly.
9.1.2FinanciaI_and_budgetary_asgects
Community foodaidexpenditure isfinanced fromthefollowing
appropriations :
«
a)-Chapter 92(Community FoodAid)ofthebudget,whichcovers
allfoodaidexpenditure withtheexception oftheamounts
forrefunds,
b)-Title6ofthe-budget,"Guarantee",whichcoverstheamounts
forrefundsaccording tosector(cereals,dairyproducts,
sugar),allowance beingmadefortheeffectofthedualrate.
Forthecommitment ofthefundsrequired byMemberStatesagainst
Chapter92,asystemofmonthlyadvances,similartothatusedfor
theGuarantee Section,isapplied.
Asfrom14April1975theseagreements areconcluded intheform
ofanexchange ofletters.

-59-
9.1.3Changes_in_therules
Anothermatterthatshouldbepointedoutistheentryinto
forceson2February 1977ofCommission Regulation (EEC)No249/77
of2February 1977layingdowndetailed rulesfortheimplementation
ofRegulation (EEC)No2681/74onCommunity financing ofexpenditure
incurred inrespectofthesupplyofagricultural products asfood
1aidandthedistribution ofamemorandum toassistMemberStates
atthevariousstagesoffinancing suchaid.
TheCommission alsoputbeforetheCouncil aproposal toconsolidate
allthefoodaidappropriations intoonechapterinordertomake
thebudgetsimplerandmoretransparent (inclusion offoodaid
2refundappropriations inChapter 92);
Thisproposal wasnotadoptedbytheCouncil.
9.2Jhe.cash_gosi_tIon
9.2.1Advances
Themonthlyadvances (ordinary andextraordinary )requested bythe
MemberStatesandmadethesubjectofCommission decisions totalled
202.27 Muainthe1977financial year.
Theseadvances werethesubjectofprovisional globalcommitments
andtheamountsdecided uponwereplacedatMemberStates'disposal
forfinancing Community foodaid.
Abreakdown byMemberStateoftheadvances decidedupon,expenditure
carriedoutandtherateofutilization oftheadvances isgivenin
thefollowing table:
0JNoL34,5February 1977,p.21
20JNoC228,24September 1977,p.3
/

-60-
TABLE11:Breakdown andutilization ofmonthly advances in1977
.MemberState Advances
ua(1)Expenditure asat
31.12.1977 ua(2)Percentage
utilized
• i
:BELGIUM ::23785688.70 ::24084947.84 ::100%
"DENMARK 0 ;0 :» •
!p-m« I
:GERMANY ::61381889.59 ::56063002.86 91% :
"FRANCE ;64456330.34 'I53699023.65 ;83%
:IRELAND ::6555229.09 ::6442805.69 !98% :
.ITALY '■35084312.28 j;33002076.82 94%
:LUXEMBOURG ::355044.38 ::355044.38 ::100Z :
"NETHERLANDS '10651197.23 '10050089.84 94%
:UNITED KINGDOM :
• i: 0 :: 0 :p.m. :
'202269691.61 ''182676991.08 '91%
(1)Including 27152911.45ua,thebalanceavailable on31December as
showninthefinancial reportfor1976(page123,TableA2)
(2)Expenditure declared bytheMemberStates.
Comparison ofthesefigureswiththosefor1976showsthatthe
advances haverisenfrom138.82 Muato202.27 Mua.
Thisismainlyduetomakingupthedelayincarrying outthe
cereals programmes .Therateofusehasalsorisenfrom80%in
1976to91%.Thisislargelytheresultofimproved expenditure
estimates bythepayingagencies .
9.2.2Çhanges_2n_the cashjDOsition
Annexes AIandAllshowthecashposition on31December 1977.
Fundsavailable,brokendownbyMemberState,amountto
18818213.76uafortheCommunity .
9.3Administration_of_aggrogriations_and_Ba^ments
9.3.1l2t§i^§EBE2E£l§ti2D§_§vai lable_in_1977
Thefollowing appropriations wereavailable :

-61-
-Appropriations carriedforward from1976becauseofdelaysinthe
implementation ofsomeprogrammes ;
-Newappropriations inthe1977budget;
TABLE12:Totalappropriations available in1977
• •• •
Cereals,milkproducts and
sugarconventions
• ■
■ ■
• • •• • mu.a.
• • •
• • •
*1976budgetTcarry-over 189302910.88
*1977budget 178400000.00
TOTAL :367702910.88 :
highfigureowingtodelayincarrying outthe1976programmes .
9.3.2Payments
a)§xgenditure_dec lared_by_the_Membe r_Stat.es
TableNo11andAnnexAIIIshowexpenditure declared (183676991.08ua)
bytheMemberSatesandeffected inthecourseof1977againstthe
advances granted.
Thecharging oftheseamountsinthecourseofthefinancial year
doesnotofcourseprejudge thefinalaccounts,asapproved bythe
Commission aftertheprocedure forauditandclearance ofaccounts .
Thedifferences betweentheadvances decided andexpenditure
constitute thebalances available on31December 1977,whichthe
Member "Statesmayusefortheirexpenditure in1978.
b)Directpayments
Apartfromadvances paidtotheintervention agencies intheMember
StatestheCommission madevariousdirectpayments tocertain
recipient countries oragencies asfinancial contributions for
forwarding anddistributing foodproductssuppliedasgifts.
Thesedirectpayments amountedtoA007545.10ua.Thefollowing
tableshowsthebreakdown ofthisamountbyrecipient .

-62-
TABLE13:Directpayments
Beneficiary countryoragency Amountinua
:SOMALIA–r*-––_____
:904926.10 :
:ETHIOPIA :381057.09 :
:MALI ::237653.98 :
:CHAD :151237.18 :
:U.N.R.W.A. :329675.46 :
:W.F.P. :1299446.98 :
:I.R.C.C. :10060.00 :
:UPPERV0LTA ::15737.36 :
:VARIOUS C1) :677750.95 :
: Total :4007545.10 :
9.3.3 Aggrogriations_carried_forward_to_1 978_(cf._Annex_A_I )
Theappropriations whichwerecommitted in1977butdidnotresultin
payments bytheMemberStateswereautomatically carriedforwardto
1978.
Theamountinvolved was123.82 Mua,including 105Muacommitted under
Article 40oftheFinancial Regulation and18.82 Muainaccordance
withArticleIIIofthesameRegulation .
*Theamountcommitted underArticle 40(105Mua)isbasedonthe
estimated costoffoodaidmeasures inrespectofwhichofficial
exchanges ofletterswithaviewtoarranging supplies havealready
takenplacebetweentheEECandthebeneficiary countries .These
exchanges oflettersconstitute thelegalbasisandtheoperative
eventfortheadvance commitment ofexpenditure againstthebudget.
Thesumof18.82 Muaisthedifference betweentheadvances granted
totheMemberStatesduring1977andtheexpenditure declared for
thesameperiod.
Unusedappropriations totalling 56.43 Muawerecancelled .
(1)Mainlynon-governmental organisations suchasCaritas,Oxfam,
Ecumenical ChurchCouncil.

-63-
9.4Closure_of_the_ac counts
9.4.1Verifications
Eachfoodaidmeasureisthesubjectofastatment ofexpenditure
drawnupbytheintervention agencyconcerned inaccordance with
theprocedures LaiddownintheFinancial Regulations .
Onreceipt,documents arethoroughly checkedagainsttheinformation
inthepossession oftheCommission ,inparticular intervention
prices,tenderprices,amountsofrefunds,etc.
Thisscrutiny isthenfollowed byinspection visitstothepaying
agencies .Twentyworking dayswerespentonsuchvisitsofwhich
fourwerebyFinancial Control.
9.4.2Audit_and_clearajxe_of_the_ac counts
Thedevelopment anddiversification offoodaidmeasures meant
increased workfortheCommission staffwiththeresultthatthe
auditandclearance ofaccounts hasproceeded moreslowly.
Priority wasgiventothe1974accounts amounting tosome105.5Mua.
1TheCommission decisions onclearance wereissuedinNovember 1977.
TheCommission hasreceived therequests fromtheMemberStates
concerning the1975accounts andtheworkonverification which
commenced during1977willcontinue in1978.
0JNoL313,7December 1977.

-64-
ANNEXES

-65-
LISTOFTABLES
GUARANTEE SECTION Page
G.ISummaryofimplementation forthe1977financial year 66
G.IIUtilization ofappropriations forcommitment 67
G.IllUtilization ofappropriations committed forpayment 68
G.IVUtilization ofappropriations automatically carried
over 69
G.VAdvances andfundsavailable inMemberStatesfor1977 70
G.VIFundsavailable intheMemberStatesfor1977 71
G.VIIExpenditure chargedforthe1977financial year 72
G.VIIIBreakdown ofexpenditure byeconomic category 86
G.IXBreakdown ofintervention inrespectofstoragecosts 88
G.XProducts inpublicstorage on31December 1977 89
G.XIExpenditure bysectory (1972-1977) 90
G.XIIAssessment ofthecostoftheGuarantee Sectionin
relation toGDP 91
G.XIIICasesofirregularity communicated in1977 92
G.XIVCommunication ofirregularities underArticle 4of
Regulation 283/72 93
FOODAID
A.ISummaryofimplementation forthe1977financial year 94
A.IICashposition at31December 1977 95
A.IllExpenditure declared 96
A.IVFinancefromtheCommunity budget 97
A.VAppropriations -1977budget 99

ANNEXGI
SUMMARY OFIMPLEMENTATION FORTHE1977FINANCIAL YEAR
:APPROPRIATIONS :IMPLEMENTATION :Mu.a. :%UTILIZATION :
:A.APPROPRIATIONS FORTHEYEAR•r.COMMITMENTS
1.Initialappropriations
2.Supplementary budget
a)supplementary appropriations
b)transfers Chapter 1006.167,4
714,4
219,81.Globalcommitments
-amountsspecifically committed
-balanceofglobalcommitments
.carried overto1978
.lapsed7.078,8
6.570,0
508,899,7
13.Transfer
■L5:2.Amountnotcommitted:24.3 ; 0,3Total:7.103,1 : Total :7.103,1 :: 100 :
:B.APPROPRIATIONS FROMTHE .nPAYMENTS
PREVIOUS YEAR
-Automatic carryover from1976
-Non-automatic carryover from
1976585,4
92,41.Application ofcarryover from1976
-Payments a)fromautomatic carryover
b)fromnon-automatic carryover503,5
92,4-Lapsed:81,9 :
Total 677,8 Totalcarryover from1976
2.Application of1977appropriations
a)Payments
b)Carryover to1978
.Appropriations specifically committed and
automatically carriedoverto1978
.Appropriations globally committed and
automatically carriedoverto1978
.Appropriations unused:non-automatic
carryover to1978677,8
5.570,9
999,1
23,78,7
71,6
Totalcarryover from1977to1978:1.022,8 :13,1 :
:3.Appropriations lapsed
.fromglobalcommitments
.notfromglobalcommitments
Totalappropriations lapsed508,8
0,6
509,4 6,6 :
Total:7.780,9 : Total ::7.780,9 : 100 :
Thisisatransfer fromtitletotitlewhichaffected thetotalsumavailable underTitles6and7.

ANNEXGil
UTILIZATION OFAPPROPRIATIONS FORCOMMITMENT
u.a.
:NomenclatureAppropriations .
available for1977Utilisation in1977
[Specific commitments ;
•in1977Xutilization :Appropriations :
available at31.1277 ;
: 1 2 3 4 : 5 :
chap.sector
:60cereals 634.513.000 586.652.155 92,46 :47.860.845 :
:61 rice 22.144.000 13.862.041 62,60 :8.281.959 :
:62dairyproducts 2.599.898.000 2.544.966.025 97,89 :54.931.975 :
:63oils/fats 356.600.000 304.997.736 85,53 51.602.264 :
:64sugar 545.500.000 536.677.738 98,38 8.822.262 :
:65beef/veal 495.400.000 410.846.023 82,93 84.553.977 :
:66pigmeat 45.000.000 31.868.727 70,82 13.131.273 :
:67eggs/poultrymeat 25.000.000 22.284.163 89,14 2.715.837 :
:68fruit/vegetables :187.500.000 186.228.564 99,32 1.271.436 :
:69 wine 109.000.000 90.918.813 83,41 18.081.187 :
:70tobacco 209.000.000 205.284.649 98,22 :3.715.351 :
:71fisheryproducts 10.000.000 7.904.093 79,04 2.095.907 :
:72alcohol p.m.
:73othersectors 54.400.000 51.380.129 94,45 3.019.871 :
:74refunds on :128.000.000 124.147.057 96,99 ;3.852.943 :
processed products
:75acc.comp.amount :200.000.000 174.929.919 87,46 25.070.081 :
:78 MCAs 970.000.000 859.937.628 :88,65 110.062.372 :
:79dualrate :603.500.000 509.490.094 84,42 :94.009.906 :
:Total 7.195.455.000 6.662.375.554 92,59 533.079.446 :
ΛTotalappropriations available for1977 7.195.455.000
Totalspecific commitments 6.662.375.554
Globalcommitments 7.171.169.872
Totalcommitments available 508.794.318
(1)Including non-automatic carryover of92355265.43u.a.(foodaid)tofinanceexpenditure forthe1977financial year

ANNEX GIII
UTILIZATION OFAPPROPRIATIONS COMMITTED FORPAYMENT
AppropHattons spedflcally .commi ttedin1977 *
[from carryover ,'front 1977
.from 1976 .appropriations , total
,(non-automat1c ),
: 1 i 2 3 ! 4
:chap .Sector :
60 cereals 27.995.9 » :558 .656 .170 !586.652.155 :
:61 rice 1.144.486 : 12.717.555 i 13.862.041 :
:62 dairy products 63.214.794 !:2.481.751.231 ::2.544.966.025 :
:63 oHs /fats ι304.997.736 ι304.997.736 :
;64 sugar :536.677.738 1ι536.677.738 !
:65 beef /veal 410.846.023 : 410.846.023 ;
:66 plgmeat 31.868.727 i 31.868.727 :
:67 eggs /poultrymeat : 22.284.163 : 22.284.163 :
:68 fruit /vegetables :186.228.564 : 186.228.564 :
:69 wine : : 90.918.813 : 90.918.813 :
:70 tobacco 205.284.649 : 205.284.649 :
71 fishery products ί I 7.904.093 ι 7.904.093 :
:72 alcohol: : i
:73 other sectors X 51.380.129 ι 51.380.129 :
:74 ref .onproc .products : i 124.147.057 : 124.147.057 :
:75 acc .comp .amounts : : 174.929.919 :;174.929.919 :
:78 MCAs 859.937.628 : 859.937.628 :
:79 dual rate :509.490.094 :
: ::509.490.094 :
Total 92.355.265 6.570.020.289 6.662.375.554 :Payments made 1n1977 'Committed appropriations unused :
at31.12.1977 :
from carryover 'from 1977 ,from carryover'from 1977
from 1976 .appropriations i total from 1976 .appropriations .
(non-automat ic)
5 6 7 8 9
27.995.985 378.297.481 406.293.466 180.358.689 :
1.144.486 : 12.717.555r : 13.862.041 :
63.214.794 ::2.465.643.688 ::2.528.858.482 : : 16.107.543 :
! 92.993.643 :! 92.993.643 : :212.004.093 :
536.677.738 :!536.677.738 :
i354.923.130 ::354.923.130 : Î 55.922.893 :
: 30.926.903 : .30.926.903 : 941.824 :
: 22.284.163 :: 22.284.163 :
: 58.572.860 :: 58.572.860 : 127.655.704 :
: 64.293.030 : 64.293.030 : : 26.625.783 :
: 100.711.327 ι! 100.711.327 : : -104.573.322 :
7.867.782 : 7.867.782 : 36.311 :
49.230.028 : 49.230.028 : 2.150.101 :
:124.147.057 : 124.147.057 !
174.929.919 ! 174.929.919 :
859.937.628 : 859.937.628 !
236.804.896 : 236.804.896 : 272.685.198 :
92.355.265 5.570.958.828 5.663.314.093 999.061.461 :

ANNEX GIV
UTILIZATION OFAPPROPRIATIONS AUTOMATICALLY CARRIED OVERFORPAYMENT
u.a.
:Nomenclature Appropriations auto­
matically carriedover
availalbe in1977Payments madein1977
fromappropriations auton
matically carriedover:Appropriations unused :
iat31Dec.1977 :
Automatic carryover
(global)
Automatic carryover AIM/!56.181.519,72
k529.196.386,393.082.342,99
500.443.154,1053.099.176,73
28.753.232,29
:Total :585.377.906,11 503.525.497,09 81.852.409,02 :

ANNEX 6V
ADVANCES AND FUNDS AVAILABLE INMEMBER STATES FOR 1977
u.a .
DATE OF
DECISIONBELGIUM DENMARK GERMANY FRANCE IRELAND ITALY LUXEMBOURG NETHERLANDS UNITED KINGOOM EEC TOTAL
17.12.76
19.1.77
17.2.77
18.3.77
19.4.77
18.5.77
10.6.77
14.6.77
13.7.77
27.7.77
23.S.77
13 .9.77
13.10.77
20.10.77
15.11.7725.000.000 ,-
32.000.000 ,-
46.000.000 ,-
58.800.000 ,-
38.000.000 ,-
30.000.000 ,-
20.000.000 ,-
34.000.000 ,-
29.000.000 ,-
39.000.000 ,-
56.300.000 ,-
72.000 ,-
17.900.000 ,-49.000.000 ,
53.000.000 ,
53.500.000 ,
53.500.000 ,
53.000.000 ,
49.000.000 ,
52.000.000 ,
59.000.000 ,
62.000.000 ,
45.000.000 ,
49.500.000 ,
1.300.000 ,
50.500.000 ,117.000.000 ,-
47.000.000 ,-
104.300.000 ,-
.140.400.000 ,-
146.500.000 ,-
84.300.000 ,-
100.000 .
76.000 .
101.000 .
30.000 .
111.000 .
88.300 .
7.260 .
121.500 .000 ,-
000 ,-
000 ,-
000 ,-
000 ,-
000 ,-
000 ,-
000 ,-210.000.000 ,-
140.000.000 ,-
83.000.000 ,*
173.000.000 ,-
87.000.000 ,-
87.100.000 ,-
95.000.000 ,-
204.000.000 ,-
153.000.000 ,-
167.000.000 ,-
152.000.000 ,-
5.400.000 ,-
144.500.000 ,-45.000.000 ,-
14.000.000 ,-
24.000.000 ,-
44.000.000 ,-
55.000.000 ,-
63.000.000 ,-
68.000.000 ,-
70.000.000 ,-
53.000.000 ,-
25.000.000 ,-
90.000.000 ,-
35.000.000 ,-120.000 ,
135.000 ,
129.000 .
30.000 .
70.000 ,
72.000 .
64.000 .
130.000 .
120.000 .
160.000 .000 ,-
000 ,-
000 ,-
000 ,-
000 ,-
000 ,-
000 ,-
000 ,-
000 ,-
000 .-
96.000.000 ,-1.140.000 ,
100.000,
1.280.000 ,
200.000 ,
660.000 ,
3.000.000 ,
300.000 ,
180.000,
1.200.000 ,
260.000 ,
36.000 ,
170.000 ,80.000.000 ,
70.000.000 ,
68.000.000 ,
87.500.000 ,
67.500.000 ,
75.000.000 ,
75.000.000 ,
72.000.000 ,
124.000.000 ,
50.000.000 ,
50.000.000 ,
1.860.000 ,
90.000.000 ,39.000.000 ,-
12.000.000 ,-
43.000.000 ,-
18.000.000 ,-
5.000.000 ,-
28.000.000 ,- :
42.000.000 ,- :
36.000.000 .- t
39.000 .000 ,«
40.000.000 ,-
*3.000.000 ,-
5.100.000 ,-
19.900.019,20 :686.140 .
503.100 .
552.090 .
605.400
522.660
*91 .*C?
64.000 .
582.300 .
671.000 .
721.190 .
30.000 .
574.200 .
529.360
21.028 .
*79.470 .000 .-
000 ,-
090 ,-
000 ,-
000 ,-
000 ,-
oo»,-
000 .-
000 ,-
000 ,-
000 ,-
000 ,-
000,-.
000 ,-
019,20I)-
TOTAL ADVANCED 426.072.000 ,- 630.300.000 , 1.274 .560 .000 ,- :1.701.000.000 ,- 586 .000.000 ,*1.126.000.000 ,- 8.526.000 , 910.860.000 , 370.000.019,20 :7.033.318.019,20
AVAILABLE FUNDS
AT1.1.77171.147,10 529.477,49 81.854,46 :
t534.130,24 723.693,65 131.454.850,56 88.435,58 148.866,22 4.199.397,22 :137.851.852.52
ι
TOTAL AVAILABLE
FUN9S426.243.147.10 630.829.477,49 1.274.641.854,46 :1.701.534.130,24 586.723.693 . 1.257.454.850,56 .8.614.435,58 911.008.866,22 374.119.416.42 :7.171.169.871,72
1>These figures represent onthe60%tobecharged totheGuarantee Section oftheEAGGF -Regulation 1078 /77(advances under
thesystea ofpremiums forthenon-*arket1ng of»Ukanddairy products andtheconversion ofdairy herds )*

-fi-
ANNEX CVI
FUNDSAVAHAfJLE INTHEHEMDCR STATES FOR1977
:MEM8ER STATE JAN.FEB.:MARCH APRIL :MAY:JUNC JULY :
:BELGIUM :A:0,1:: :
: i !
Β:25,-s32,-:46,-:58.β:38,-:30,-:20,-t
: :C:25,1:23,9:37,8:56,5:4S,6:46,7:31,3:
D:33,2:32,1:40,1:48,9:28,9:35,4:26,1:
: :
: tE:-8,1:•8,2:-2,3:7,6:16,7:11,3:5,2:
;DENMARK :A:0,6:
Β:49,-î53,-:53,5:53,5:53,-:49,-:52,-:
C:49,6:57,1:56,1:54,5î57,5 s58,9:42,3:
D:45,5:54,5:55,1:50,-:47,6:68,6:52,7:
Κ:4,1:2,6Îl»-:4,5:9.9:-9,7-10,4:
:GERMANY :A:PN
Β:117,-:47,-:104,3:140,4:146,5:84,3:100,-î
C:117,-:76.6:83,4:109,9:154,6:137,9:148,1:
D:87,4:97,5:113,9 :101,8:101,-:89,8:104,4:
E:29,6:-20,9:•30,5:8,1:53,6:48,1s43,7:
:FRANCE :A:0,5:
Β:210,-:140,-:83,-:173,-:87,-:67,1:95,-:
C:210,5:255,6:173,2 :;204,8:182,9 :172,8:117,5:
D:94,9:165,4:141,4 ;108,9:97,2::150,3:141,8:
E:115,6 :90,2:31,8:95,9:85,7:22,5:-24,3:
IRELAND :A:0,7:
Β:45,-:14,-:24,-:44,-:55,-î63,-:68,-:
C:45,7:32,-:28,4:38,7 s53,7 :60,-:63,-:
D:27,7 s27,6:33,7 :40.-:56.7 s65,-î53,9:
E:18,-;4,4:-5,3:;-1,3:-3,-::-5,-i9,1:
SITALY :A:131,5 :
Β:120,-:ι135,-:129,-:30,-s70,-î!136,-:ι130,-:
C:251,5 ::326,6:358,6 :ι244,5:203,1 ::253,2 ::278,8:
fi:59,9 :97,-ί144,1 :ί111,4 85,9 :;104,4i91,9:
E:191,6 ::229,6:214,5 ::133,1:117,2 :ι148,8 ::186,9:
^LUXEMBOURG :A:0,09 ί
Β:1,14:0,10:1,23 :0,20:0,66:3,-:0,30:
C:1,23:0,53:0,49 :0,27:0,48 :2,96:2,85:
0:0,80 :1,32:0,42 :0,45:0,52 :0,41 :0,43:
E:0,43 ::-0,79:0,07::0,18:-0,04 :2,55 ;2,42:
: s,
•NETHERLANDS :A:0,2 is
75,-î Β:80,-:70,-:68,-:67,5:67,5 :75,-:
C:60,2 :77,4:75,8 :82,1î76,-i:82,2 :71,5:
:0:72.8 69,6 81,2 73,6 68,8:65,7:78,3ι
:E:7,4 7,6î-5,4 6,5:7,2:-3,5Î-6,6I
: t
:UNITED KINGDOM:A,4,2
s28,-: t
ίΒ;39.-:12.-43.-18,- 5,- :42,·ι
:C:43.2:24,1:51,7 53,6:39,3:25,2 32,3(
:D:31.1 15,4:15,9:19,5 42,1 34,9:28,1i
iE12,1 6,7:35,6 34,3:-2,8:-9,7:4,2:
: ι
:EECTOTAL :A:137.9 t
:582,3::Β:686.1:503.1 :552,1:605,4:522,7 :555,4
:C:824.-:673.6 :865,5:845,1:613,2 s839,9:787,7 :
:Β:453.3 s560,4:625,6:554,6 s528,7:634,5:577,7 :
:E:370,7:313,4 s239,7:290,5 s284,5:205,4:210,*::
AUG.:SEPT. OCT. NOV. DEC. MEAN
34,- 29,-:39,-:56,4 17,9 35,5:
39,2 35,-î41,6:52,2•:32,5:39,-:
33,2 :33,2 :46,-:37,6 :24,9 :34,9:
6,- 2,8:-4,2 s14,6 :7,6:4,1:
59,- 62,-45,-50,8i
50,5 ;52,5:
48,6 56,4 ;61,5 :59,4 :47,8 :54,1;
54,2 39,9 ;52,9i62,1 41,7 :52,-i
-5,6 16,5 :6,6::-2,7:6,1:2,1:
76,-131,-111,-95,6 121,5 :106,2:
119,7 :138,1 ::146,7 !:145,3 ::153,5 i127,6:
112,6 :102,4 :97,-i:113,3 ::124,8 ι:.103,8 :
7,1 35,7 :49,7 ί32,-ι26,7 :23,6:
204,-153,-167,-157,4 144,5 141,8:
179,7 :193,8 :;207,4 ::240,5 ::266,6 ::200,4 :
138,9 :153,4 :i124,3 :ί118,4 ::137,5 ::131,-:
40,8 40,4 :83,1 ::122,1 ::129,1 :69,4:
70,- 53,-25,-90,-35,-46,8:
79,1:66,1:21,-:61,9 37,-48,9:
66,-:70,1 :49,1 :59,9:.38,4:49,-:
13,1 s-4,-:-28,1 :2,-:-1,4:-0,1:
120,-:
:160,-:
:96,- 93,9
306,9 :293,1:297,5 :224,4:144,6:265,2:
173,8 :91,6:73,1 :79,8:-147,1:80,5:
133,1:201,5:224,4 :144,6:291,7 s184,7.:
0,18 1,20 0,29 0,17 0,71
2,42 1,81:0,34 0,35 0,26:1,17:
0,79:2,67:0,28 0,26:-0,29:0,67:
1,63:-0,86,0,06 0,09:0,55 0,50:
72,-124,-50,-51,8 90,-75,9
65,2:116,2:99.6:63,5:99,2 84,1:
73.-66.6:67,9:74,3:75,5:74,-:
-7,8 49,6:31,7:9,2:23,7:10,1:
36.- 39,-40,-48,1 19,9 30,8:
40.2 40,2 :45,4:58,8 :43,8 :41,5:
39.-34,8 :34,7;34,9 :21,-s29,3:
1.2 5,4 :10,7:23,9 :
: l22,6:
t :12,2:
671.-751.2 574,2 550,4 479,4 586,1:
881.-:940,7 ::921,3 ::926,4 :i825,2 ::862,-:
691.5 :593,6 ::545,3 ::580,6 ::316,4 ι:555,2 :
189,5 :347,1 :s376,-':345,6 ::508,8 ::306,8 :
A•Balance«t31.12.1976
••Advances forthemonth
C■Totalavailable fortheMonth
9■Expenditure forthemonth
I«Balancestillcallable
Thebalancesremainingavailableattheando'themonthrepresentthedifference
betweentheamountavailable atthe o' andtheexpenditure
declaredforthatnon?h?otheCollision,withoutt.*k»nyintoaccountsumspaidafter
the20thoftheir.onthtnreioectofthefollowing month.
Thl*procedurtejpialnswhynegativebalance#areshownattheendofthemonthforsome
MemberStates.

ANNEX 6VII
« – –––
EXPENDITURE CHARGED FOR THE 1977 FINANCIAL YEAR–– "Mu.a.
Item Belgium Denmark Germany France Ireland Italy LuxembourgNether­
lands .United
KingdomEEC TOTAL
CEREALS 33,656 10,137 184,988 169,746 0,487 135,746 0,227 47,218 4,447 586,652
REFUNDS 28,302 9,060 88,266 136,507 0,457 33,440 0,147 28,330 1,162 325,671
Refunds 22,857 9,060 69,853 113,317 0,457 27,462 0,147 27,847 1,162 272,162
Community food aid 1977 9,727 9,727
Community food aidunder
preced .prog .5,445 18,413 13,463 5,978 0,483 43,782
:INTERVENTION 5,354 1,077 96,722 33,239 0,030 102,306 0,080 18,888 3,285 260,981
|Premiums fortheincor -
*poration ofwheat inanimal
"feed -0,102 -0,102 :
:Production refunds for
:potato ,starch 1,151 1,869 1,669 11,147 15,836 :
:Other production refunds 5,325 11,805 15,614 0,030 8,171 7,743 3,285 51,973 :

Mu.a.
: Item Belgium Denmark Germany France Ireland Italy LuxembourgNether­
landsUnited
KingdomEECTOTAL
:Aidfordurumwheat 5,236 164,875 170,111
:Carryover payments -0,002 0,012 0,010
:Buying-in andsubsequent
:operations 0,029-0,074 83,245 8,619 -70,782 0,080-0,002 21,115
:Specialintervention measures -0,093 1,537 1,444
:Otherintervention 0,564 0,030 0,594
:RICE 0,062 0,003 0,587 0,045 12,870 0,293 0,002 13,862
:REFUNDS 0,000 0,003 0,553 0,045 12,855 0,258 0,002 13,716
:Refunds 0,000 0,003 0,553 0,045 6,023 0,258 0,002 6,884
;Commonmeasure foodaid1977 3,217 3,217
:Common measure foodaid
:preced.prog. 3,615 3,615
•ι
:INTERVENTION 0,062 0,034 0,015 0,035 0,146

Mu.a .
Item Belgium Denmark Germany France Ireland Italy LuxembourgNether­
landsUnited
Kingdom£EC TOTAL :
MILK /DAIRY PRODUCTS 215,608 218,580 :>621,177 700,030 131,862 -1,171 7,538 522,885 128,457 2.544,966 :
REFUNDS 158,437 139,208 144,052 301,278 99,901 9,884 1,073 363,333 19,802 1.236,968 :
Refunds 126,788 139,208 74,812 278,051 92,425 9,884 0,424 345,510 19,802 1.086,904 :
Common measures food aid
in1977 1,783 8,844 10,627 :
Common measures food aid
under preced .prog . 29,866 60,396 23,226 7,477 0,649 17,823 139,437 :
INTERVENTION /SKIMMED MILK 47,984 71,619 343,782 342,567 24,038 -1,311 2,070 133,004 33,019 996,772 :
Aidskimmed milk powder -
animal feed 12,797 6,674 105,662 231,190 9,306 3,378 0,220 77,608 11,622 458,457 :
:Aid liquid skimmed milk -
:animal feed 16,685 59,513 83,033 2,848 1,292 1,566 0,220 1,626 9,108 175,891 :
:Aidskimmed milk processed
:into casein 1,274 25,588 37,182 14,831 30,395 3,046 112,316 :

Mu.a.
Item Belgium Denmark Germany France Ireland Italy LuxembourgNether­
landsUnited
Kingdom:EECTOTAL
Privatestorage
Publicstorage andspecial
disposal measures 18,502 4,158 129,499 71,347 -1,391-6,255 1,630 23,375 9,243250,108 :
Foodaidfrompublicstocks
ofskimmedmilkpowder
:Otherintervention
:INTERVENTION /BUTTER &CREAM 9,871 8,383 135,178 57,428 8,980-20,908 4,365 29,340 79,270 311,907 :
:Privatestorage 2,430 0,015 6,779 11,116 1,031 0,127 7,454 7,491 36,443 :
:PublicStorageandspecial
:disposai measures 7,441 6,188124,724 39,127 -20,908 4,098 21,886 3,944186,500 :
:Specialmeasures forabsorb­
:ingsurpluses ofbutterfats 2,180 3,675 7,185 7,949 0,140 67,835 88,964 :
:Foodaid-publicstocks
:ofbutter
:Otherintervention

Mu.a.
: Item Belgium Denmark Germany France Ireland ItalyLuxembourgNether­
landsUnited
KingdomEECTOTAL
:INTERVENTION /OTHERDAIRYPROD 0,039 3,699 11,164 14,902:
:Storageofcheese 0,039 3,699 11,164 14,902 :
.Participation schoolmilk
:Otherintervention
:Non-marketing &conversion
:premiums 0,073 0,725 3,900 0,029 0,036 0,549 0,888 6,200:
:Financial participation by
:milkproducers -0,757-1,355-5,774-4,970-1,508 -0,006-3,341-4,522-21,783 :
:0ILS/FATS 0,578 0,692 28,360 33,482 227,404 2,973 11,509 304,998 :
:REFUNDS/OLIVEOIL 0,004 0,002 0,005 0,011:
:INTERVENTION /OLIVEOIL 0,001 1,847 219,762 221,610 :
•Production aid 1,022 204,054 205,076 :
•Storage 9,172 9,172:
:Otherintervention 0,001 0,825 6,536 7,362:

Mu.a.
Item Belgium Denmark Germany France Ireland ItalyLuxembourgNether­
landsUnited
KingdomEECTOTAL:
REFUNDS/COLZA,RAPE,SUNFLOWER 0,004 0,897 0,057 0,958
INTER./COLZA,RAPE,SUNFLOWER 0,046 0,680 28,356 26,708 7,225 2,544 11,504 77,063 :
:Production aid 0,046 0,679 28,355 26,708 7,225 2,544 11,504 77,061 :
:Storage 0,001 0,001 0,002:
:Otherintervention
:INTERVENTION /OTHERSEEDS
: (ITEM1201)0,531 0,012 4,026 0,415 0,372 5,356:
:Aidforcotton seeds 0,410 0,410:
:Aidforsoyaseeds 0,208 0,005 0,213:
:Aidforflaxseed 0,531 0,012 3,818 0,372 4,733:
:SUGAR 80,041 34,054 107,289 233,371 2,103 26,144 39,081 14,595 536,678 :
:REFUNDS/SUGAR 67,033 27,315 67,637 174,928 0,006 0,001 26,100 0,241 363,261 :
:Reffunds
t67,033 27,315 67,230 174,628 0,006 0,001 26,100 0,241 362,554 :

Mu.a.
: Item Belgium Denmark :Germany :
L* JFrance Ireland ItalyLuxembourgNether­
landsUnited
KingdomEECTOTAL:
:Refunds Community foodaid
:19770,407 0,300 0,707 :
|RefundsCommunity foodaid
'underpreced.prog.
:INTERVENTION /SUGAR 13,008 6,739 39,652 58,443 2,097 26,143 12,981 14,354 173,417 :
:Denaturing premiums 0,357 0,134 0,028 0,004 0,523 :
;Refundsforuseinthe
•chemical industry -0,005 -0,005:
:Reimbursement of
:storagecosts 12,069 6,739 39,483 50,293 2,097 26,148 12,953 11,808 161,590 :
:Publicstorage 0,939 -0,188 0,823 1,574:
:Measures forsugarproduced
:inFrenchoverseas depts. 7,182 2,542 9,724:
:Sugarimportsubsidy 0,011 0,011:
:Otherintervention

Mu.a.
Item Belgium Denmark Germany France Ireland ItalyLuxembourg'Nether­
'landsUnited
KingdomEECTOTAL
BEEF/VEAL 12,400 40,173 154,399 59,241 80,055 7,514 0,027 35,105 21,932 410,846
REFUNDS 7,965 11,037 36,659 27,034 19,864 0,282 10,135 1,224114,200
:Refunds 7,965 11,037 36,659 27,034 19,864 0,282 10,135 1,224114,200 :
Refunds Community foodaid
:INTERVENTION /STORAGE 4,428 29,142 117,836 32,209 60,084 -45,119 0,027 24,971 16,038 239,616 :
'Privatestorage 3,649 1,335 14,808 13,351 9,502 3,571 0,022 1,783 13,815 61,836 :
:Publicstorage 0,779 27,807 103,028 18,858 50,582 -48,690 0,005 23,188 2,223 177,780 :
:OTHERINTERVENTION 0,007-0,006-0,096-0,002 0,107 52,351 -0,001 4,670 57,030 :
•Aidforsocialpurposes 0,001 0,000 0,001:
:Premiums fororderlymarket­
:ing&slaughter ofbeef
:cattle0,007-0,006-0,096 0,107 -0,001 4,566 4,577:
.Premiums forreconstitution
!ofherds-0,003 52,351 52,348 :
• ι
:Other . 0,104 0,104:

Mu.a.
Item Belgium :Denmark :
L c*Germany France Ireland ItalyLuxembourgNether­
landsUnited
KingdomEECTOTAL:
PIGMEAT 1,771 17,920 2,395 0,553 0,286 0,999 0,000 7,712 0,233 31,869
REFUNDS 0,684 17,135 1,615 0,030 0,265 0,057 0,000 5,141 0,000 24,927
INTERVENTION 1,087 0,785 0,780 0,523 0,021 0,942 2,571 0,233 6,942
EGGS/POULTRYMEAT 1,307 4,425 4,190 6,447 0,145 0,000 5,520 0,250 22,284
REFUNDS ONEGGS 0,324 0,254 1,721 0,368 0,136 0,000 1,964 0,075 4,842
REFUNDS ONPOULTRYMEAT 0,983 4,171 2,469 6,079 0,009 0,000 3,556 0,175 17,442
FRUIT/VEGETABLES 0,838 0,848 0,670 10,675 0,126170,206 1,968 0,898186,229
:REFUNDS 0,088 0,848 0,432 6,056 0,126 42,550 0,999 0,874 51,973
:Refunds onfreshfruitand
:vegetables 0,071 0,586 0,318 5,188 24,028 0,843 0,002 31,036
:Refunds onproducts processed
:fromfruitandvegetables 0,017 0,262 0,114 0,868 0,126 18,522 0,156 0,872 20,937 :
INTERVENTION /FRESHFRUIT &
VEGETABLES
I0,750 0,238 1,017 127,656 0,969 0,024130,654 :

Mu.a.
Item Belgium Denmark Germany France Ireland Italy LuxembourgNether­
'landsUnited
KingdomEECTOTAL
Withdrawal compensation and
buying-in 0,750 0,238 0,951 101,574 0,969 0,024104,506
:Processing Sdistribution 0,011 0,036 0,047
:Compensation forpromotion
:ofCommunity citrus
:fruits 0,055 17,159 17,214 :
:Compensation forprocessing
:oranges8,887 8,887:
:Otherintervention 3,602:
INTERVENTION /PROCESSED PRODS,3,602
:WINE 0,001 0,319 64,034 26,461 0,104 90,919 :
:REFUNDS 0,001 0,033 1,237 0,165 1,106:
:INTERVENTION 0,286 55,355 26,606 0,104 82,351 :
:Aidforprivatestorage 0,026 24,242 11,688 0,104 36,060 :
:Aidforrestorage oftables
:wines 0,000 0,964 0,169 1,133:

Mu.a.
Item Belgium Denmark Germany FranceIreland ItalyLuxembourgNether­
landsUnited
KingdomEECTOTAL
Distillation ofwine*
0,272 30,012 14,749 45,033
Otherintervention -0,012 0,137 0,000 0,125
OTHEREXPENDITURE 7,442 0,020 7,462
Obligatory distillation of
by-products ofwinemaking 7,442 0,020 7,462
TOBACCO 1,807 16,370 72,205 114,898 0,004 205,284
:REFUNDS 0,105 4,393 0,004 4,502
:INTERVENTION 1,807 16,265 72,205 110,505 200,782
:Premiums 1,807 15,113 72,205 104,574 193,699
:Storage andotherinterven . 1,152 5,931 7,083
:FISHERIES 0,439 1,211 1,895 0,929 0,232 0,037 1,163 1,998 7,904
:REFUNDS 0,241 1,036 0,653 0,096 0,025 0,656 0,590 3,297
•I
:INTERVENTION 0,198 0.175 1,242 0,833 0,207 0,037 0,507 1,408 4,607:

Mu.a.
Item Belgium Denmark Germany France Ireland ItalyLuxembourgNether­
landsllmted
Kingdom£ECTOTAL
Withdrawals andbuying-in
Aidforprivatestorage
:Otherintervention
:ALCOHOL
:Alcohol
:OTHER COMMON MARKET ORGAN.2,717 7,581 8,623 20,275 0,222 2,150 0,007 5,609 4,196 51,380 :
:INTERVENTION /FLAXANDHEMP 1,702 0,005 10,060 0,000 0,569 1,091 0,395 13,822 :
:SEEDS 0,653 5,699 1,300 3,182 0,076 0,002 0,007 3,293 1,874 16,086 :
:H0PS 0,319 5,894 0,868 0,026 1,111 8,218:
:SILKWORMS 0,008 0,329 0,337 :
:DEHYDRATED FODDER 0,043 1,882 1,424 6,157 0,120 1,250 1,225 0,816 12,917 :
:POTATOES
ι. i

Mu.a .
Item Belgium Denmark
*Germany France Ireland Italy LuxembourgNether­
landsUnited
KingdomEEC TOTAL :
SHEEPMEAT
OTHER
Refunds oncertain goods
obtained from processing
agricultural products 9,601 19,031 12,852 8,483 10,455 6,590 0,038 31,067 26,030 124,147 :
ACCESSION C0MPENSAT0RY
AMOUNTS INTRA 12,012 42,682 21,498 32,649 8,282 9,210 0,138 48,407 0,052 174,930 :
MONETARY COMPEN .AMOUNTS 51,263 196,267 143,829 138,195 124,483 -34,622 0,088 195,039 45,396 859,938 :
:INTRA-COMMUNITY TRADE (1) 45,529 196,267 96,578 137,166 123,434 -35,958 0,074 183,047 -96,000 650,137 :
;MCAs onimport paid or
:charged byimporting Member
•States-5,614 0,046 -157,970 165,092 8,667 12,281 -0,161 -8,243 6,423 20,521 :
:MCAs onimport paid by
:exporting Member States 40,946 196,795 133,260 262,131 187,976 0,138 163,440 984,686 :
'MCAs onexport paid or
:charged byexporting Member 10,197 -0,574 121,288 -290,057 -73,209 -48,239 0,097 27,850 -102,423 -355,070 :
-EXTFA COMMUNITY TRADE
1 15,734 47,251 1,029 1,049 1,336 0,014 11,992 141,396 209,801 :

Mu.a .
Item :Belgium •Denmark •Germany •France :Ireland •Italy iLuxembourgNether­
landsUmted
KingdomEEC TOTAL
Portion ofMCAs onimports
over andabove levy 1,029 1,049 1,336 141,396 144,810 :
MCAs onexports 5,734 47,251 0,014 11,992 64,991 :
EXPENDITURE RESULTING FROM
APPLICATION OFDIFFERENT
EXCHANGE RATES -5,443 31,176 -63,548 22,045 229,554 261,206 -105 -56,776 91,380 509,489 :
:GRAND TOTALS (1) 418,658 624,780 1.245,893 1.572,405 588,147 ;965,787 8,062 887,268 351,375 6.662,375 :
fwhich *Refunds (2) 279,393 229,098 404,302 664,071 132,148 111,370 1,272 483,592 191,576 2.496,822 :
:First-category
:intervention (without
:MCAs ordual rate ) :71,489 :130,160 367,099 609,982 53,821 761,010 1,007 208,959 149,010 2.352,537 :
.Second-category
"intervention:27,690 :38,079 :441,462 :139,141 49,190 -131,841 5,814 68,446 15,409 653,390 :
(1)Without taking intoaccount corrections relating tothebreakdown ofexpenditure byMember State under thesystem whereby the
exporting Member State pays MCAs fortheimporting Member State inintra-Community trade .Amounts paid under this system are
entered ontheline "MCAs onimport "under thename oftheMember State making thepayment .Forthese corrections ,seeTable 3
page 19.
(2)Therefund total includes MCAs paid ontrade with third countries .

~IG-
ANNEX6VIII
BREAKDOWN OFEXPENDITURE BYECONOMIC CATEGORY-1977FINANCIAL YEAR(flU.».)(a)
Breakdown according toeconomic natureofoperations
SECTOR:TOTAL
EXPORT
REFUNDSINTERVENTION
EXPENDITURE :
Storage (9)Withdrawal
andsimilar
opérationsPrice
compensatory
measuresTotal
a b c : 4 e £ Ssd+e+f
A.Cereals
R1ce
MiLkproducts
Oilsandfats,including
-oliveoil
-oilseeds
-flaxseed
Sugar
Beefandveal
Pigmeat •.
Eggsandpoultrymeat
Fruitandvegetables
Wine
Tobacco
Fisheries
Flaxandhemp
Seeds
Hops
SiIkworms
Dehydrated fodder
Refunds onprocessed non-Annex IIprods.586,7
13,9
2.545,0
305,0
221,6
78,0
*.7
536.7
410.8
31,9
22,3
186.2
90,9
205.3
7,9
13.8
16,1
8,2
0,3
12.9
124,2325,7
13,7
1.237,0l.«
1.0
:
363,3
114,2
24,9
22.3
52,0
1.1
*.5
3.3
!
124,221,1
488,0
9,2
9,2
163,2
239,6
7.0
36,1
7.16,2(2)
104,5
52,5(7)239,9(1)
0,2
813,8(3)•
294,8
212,4(4)
77,1
M
10,2
57.0
29,7(6)
1,2(8)
193,7
13.8
16.1
8,2
0,3
12.9261,0
0,2
1.308,0
304,0
221,6
77,1
*,7
173,4
296,6
7,0
134,2 .
89,8
200,8
*,6
13.8
16,1
8,2
0,3
12.9
TotalA :5.118,1 :2.287,2 971,3 167,8 :1.691,8 :2.830,9 :
X 100,0 44,7 18,8 3,3 «t33,2 55,3 s
:8.Accession compensatory amounts 174,9 I 174,9 174.9
C.Monetary compensatory amounts
-intra-Community trade
-tradewiththirdcountries650,1
209,6 209,$650,1 650,1 .:
:D.Effectofdualrate :509,5 :509,5 :509,5 :
Grandtotal :6.662,4 :2.496,9 971,3 167,8 :3.026,3 :4.165,4 :
100 !37,5 14,5 :2,5 :45,5 :62,5 :
(a)Forfootnotes seenextpage

foofnot^estbAn««*GVJJi
(1)Including :production refunds(67.8Mua)+aidfordurumwheat(170.1Mua)+other(2Mua).
(2)Premiumsfornon-marketing ofmilkandconversion ofdairyherds.
(3)Thisfiguretakesintoaccountchargingthecoresponsibi Litylevyof21.8Muawhich,byvirtueofArticle5ofCouncil
Regulation No1079/77,isconsidered aspartofintervention .
(4)Production aid(205.1 Mua)+otherintervention (7.3Mua).
(5)Premiumsforrestocking of(52.3Mua)+premiumsfortheorderlymarketing andslaughter ofbeefcattle(4.6Mua).
(6)PromotionofCommunitycitrusfruits(17.2Mua)+processing ororangesandlemons(8.9Mua)+intervention inrespectof
productsprocessed fromfruitandvegetables (3.6Mua).
(7)Obligatorydistillation oftheby-products ofwinemaking (7.5Mua)+distillation (45Mua).
(8)Aidforrestorage oftablewine(1.2Mua). ,
(9)Privateandpublicstorage,includingcertaindisposalmeasures.Detailsofexpenditure onstoragearegiveninAnnex6IX.
00
->1

ANNEX GIX
Breakdown ofintervention inrespectofstoragecostsin1977
Mu.a.
Τ~ :
: :Private Publicincluding :
Sector
storage storageTechnical costsFinancing costsDifference bet­
weenbuying-in
&sellingprices
1 2 3 : 4 5 : 6 :
:Cereals
:Milkproducts
:OiIsandfats
:Sugar
:Beefandveal
:Pigmeat
:Wine
:Tobacco51,3
161,6
61,8
7,0
36,121,1
436,6
9,2
1,6
177,8
7,128.1
48.2
6,1
1,4
62.3
1,120,4
101,6
4,6
1,4
43,0
2,327.4
301,7(1)
1,5
1,2
72.5
3,7
: TOTAL :317,8 :653,4 :147,2 :173,3 :347,8 :
(1)MainlyspecialmeasuresforthedisposalofmilkproductswithintheCommunity underArticles 6and12ofRegulation
(EEC)No804/68(recipients ofsocialsecurity,army,non-profit-makingorganizations ,Christmasbutter)andoutside
theCommunity .

-89-
ANNEX GX
Products inpublicstorage on31.12.1977
PRODUCT QUANTITY (TONNES) VALUE(u.a.)(1):
:COMMON WHEAT :985.730,786 :146.172.986,84 :
:BARLEY :68.861,568 :8.693.210,34 :
:RYE :429.593,142 :58.274.791,34 :
:DURUMWHEAT :211.175,739 47.656.493,56 :
:MILKPOWDER 987.589,650 904.374.668,05 :
:BUTTER 142.130,253 307.207.896,28 :
:OLIVEOIL 49.446,210 66.957.490,97 :
:OILSEEDS 1.401,511 405.943,69 :
:FROZEN BEEF :214.726,700 373.517.079,54 :
:BONEDBEEF :102.106,227 :248.240.827,50 :
:PRESERVED BEEF :53.017,959 :98.890.492,78 :
:TOBACCO :16.384,984 :38.951.014,57 :
:EECTOTAL 2.299.342.895,46
(!)Thevaluehasbeenobtained byinallcasesapplyingtheintervention
priceapplicable on1January1978.Valuesinnationalcurrencies have
beenconverted intoAgricultural unitsofaccount.

-30-
ANNEX6XI
Expenditure oftheGuarantee SectionoftheEAGGFbysector <1>
inMu.a.
SECTOR
CEREALS
Refundt
Intervention ,ofwMch
-Denaturing preitli*
•Production refund
*Aidforduruaiwheat
RZCE
Refunds
Intervention
DAIRYPRODUCTS
Refunds
Intervention ,ofwMch:
-Aidforskimmedaille
-Aidforcasein
-Storage andspecialMatures
-Foodaid
OILSANDFATS
Refundt
Intervention ,ofwMch:
-Aidforoliveoil
-Aidforcolza,rape,and
sunflower seeds
SUGAR
Refunds
Intervention ,ofwMchs
-Rei.burse.ent ofstoragecosts
BEEFANDVEAL
Refunds
Intervention ,ofwhlch:
"Publicandprivatestorage
-OrderlyMarketing
premiums
-Premiumforrestocking ofherds
PIGHEAT
Refunds
Intervention19722)
**9.0
613,S
365,5
76,0
127,-
106,4
50,3
*7.»
2,5
598,6
164,2
434,4
236,1
31.2
155,1
271,7
5,5
266,2
166,1»732)
953,0
468,8
484,2.
121,1
'167,5
30,-
11,2
10.5
0,7
1458,5
328,1
1130,4
349,3
57,2
667,7
363,0
2,5
360,5
280,6'1974
399,7
76,1
323,6
17,3
189,8
83,3
1,2
0.5
0,7
1219,2
342,0
877,2
481,0
82,0
228.5
85,4
141,0
0,8
140,2
129.61975
620,8
343,6
277.2
0,4
89,4
130,7
4,2
3.6
0.7
1149,8
328,5
821.3
511,5
61,9
184,21976
609,9
380,9
229,0
0,5
36,1
114,41977
586,7
325,7
261,0
0,1
15,8
170,1
26.9
26,6
0,313.»
13,7
0,2
2051,5 :2545,0 .:
697,4 :1237,0
1354,1 :1308,0
603,2:"634,3
89,8: 112,3
661,1: 250,1
231,4
0,7
230,7
203,7
100,0 79,7: 10,3: 25,4:
161,4
69.9
91,5127,1
83,451.6
75,5
70,0:
7.»
7,»16,1
2,7
13.4108,8
8,0
100.8
76,8
324,4
55,5
268.9
250,3
16,3:
56,0
55,8
0,290,6
90,666,5309,2
37,1
272.1
91,8
980,0
144.2
"15,8
438,2
273,9
85,6309,0
10,0
299,0
191.1
85,7
226,5
55,8
170,7
145.2
643,2
135,7
507,5
350,8305,0 :
1.0
304,0 :
205,1:
77,1:
536.7 :
363.3 :
173.4
161,6:
410.8
114,2 :
296,6 :
239,6:
87,2:
69,3:
55,5
11,053,8
39,4
-14,427.94,6:
52,3:.
22.2
5.831,9
24.»
7.0
:EGGSANDPOULTRYMEAT (Refunds):13,7 21,5 16,9 8.4 13,1 22,3
:FRUITANDVEGETABLES :60.1 34.5 66,9 90,3 244,4 186,2' :
:Refunds * 31,8 25,8 17.9 34.8 57.3 52,0
:Intervention 28,3 8,7 49,0:55,5 :187,1 130,7
:WINE :43,8 11.7 41,9 :•139,1 :172,9 90,9
:Refunds 0,4 0,4 0,1: 0,3: 1,6 1.1
:Intervention ,ofuhleh: 43.4 11,3 41,8 138,6 :168,7 89,8
s-Privatestorageaid 28,2 6,6: 25,9; 36,3: 40,9: 36,,1:
:-Other(matnlydistillation ) 14,1 2,1: 15,3: 102,0: .127.8: 53,,7:
:TOBACCO :111,0 118,3 183,6 ':228,5 :229,8 205,3
:Refund» 0,1 1,8: 2,S 4,5
:Intervention 111.0 118.3 163,5 :226.7 :227.3 200,8
:FISHERIES 1.3 »,2 1,2 9,3 !10,5 7,9
:Refunds 0,5 0,6 0,7: 2,8 3,8 3,3 :
:Intervention 0,8• 0,6 0,5 6.5 6,7 *,6
:INTERVENTION MISCELLANEOUS PRODS.:11,9 24,8 35,5 ":57,5 :72,4 51,3
:Flaxandhemp 11,5 5,5 11,8 13,9 19,3 13,8 9
:Seeds 0,4 14,3 15,2:23,8:22,7 16,1
:Hops 4,7 4,4: 8,0:14,5 8,2
:Silkworms 0.3 0,5: 0,8: 0,6 0,3
:Dehydrated fodder 3,6:11,1 :15,2 12,9
:Non-Annex IIProducts (Refunds):25,- 23,7 12,8 23,8 67,4 124,2
:TOTALEXPENDITURE AGRICULTURE 2391.7 3255,0 2619,6 3906.1 :4705,4 5118,1
:Accession compensatory amounts 264,3 332,5 :415,0 :359,9 174,9
:Monetary compensatory amounts : 140,3 137,6 :406,3 :504,7 859,9
:Effectofthedualrate(3) (340) :(340) 509,5 I
:TOTALEXPENDITURE EAGGFGUARANTEE 2391,7 3659.6 3097,9 :4727,4 :5570,0 6662,4
1)Theexpenditure istakenfromthestatments bytheMemberStatesunderthesystemofadvances andchargedtoeachfinancial year
1naccordance withArticle109oftheFinancial Regulation .
2)Theexpenditure forJanuary1973isincluded underthe1972financial year.Intermsofcalendaryearsthetotalexpenditure 1s
about2,094Muafor1972and3,912Muafor1973.
3)DatanotenteredInthe1975and1976accounts;thefiguresforthoseyearsareestimate*.

-91-
ANNEX GXII
Assessment ofoverall costoftheGuarantee Section in
relation togrossdomestic product „3 E (thousand Mua)
YearEAGGF-Gua
Grossranteeexpenditure
Minusagricultural
LeviesCommunity gross
domestic productat
marketpricesEAGGF-Guaranl
tureasXof
domestic proi
Grossteeexpendi-
EECgross
duct
Net
a b c d e=100b/df=100c/d
1974 3,098 2,768 920 0,34 0,30
1975 4,727 4,137 1.112 0,46 0,40
1976 5,570 4,407 1.283 0,47 0,38
1977 6,662 4,372 1.441 0,46 0,30

ANNCI G*111
CASES0-i»«,UL»mcoKnuuicme IN197>
S SAU■■utcu
(»l»l BreakdownbyMemterState(No.ofcase*endemountinv.*.)imm nTIfES£nfeW?fti ENNUtk *!HttrrntiMVaica
I
No.Of
ciiei.Amount
inu.aι
•!4
Belgium '
xDenmark »(irunir
x»France
t<Irelend
ii
tItaly,Lu*em-,
Ibourg |>Netherlands
itUnitedKingdom t
t i
.CEREALS Refundt
Intervention3
7:36
:139849t
SOS:t
tt
si
i>2ι
:6χ36
131127
360«•»
t1il445t
tt
II
ll
ltt i
ltIII
l•»722I
1X
tI
l
t
s TOTAL χ10χ17*654I•t• x ISx174417ilil445ι·i t•i I•I-!I1I 722»•i•l
:8EEFANDVEAL
tRefunds
Intervention:15
3:112
t 39e737x
560ix
ιi6(3:
1s85«02
27202ι2(4ι
ι4χ17
371259
35»I6(7i8
s•»4)1ι
ιt
iI
XI
III I
It 1IIt
I•I1238ι t
iI
t
s
I TOTAL ι20:SU297t-: 7:113004i4 36161716ι8436t I t-l•(l1tI236i•t•ι
SM.LKANDMILK
sPRODUCTSRefund*
InterventionS
:12S114
:3374661s
655tι
χ1:84364t1t
:6:24
817020
431ll
StI I
I I5:r
s1176209ιιι
tiii3(13iilil6
381277
215ι
ιi
t i
TOTAL :17s3469516:-x 1:84364x7x841451 x•i t•X lS:ι1176209i•i•ii4il387492l•x
tPICMCAT
tRefund*
Intervention4
5χ113
ι.147831χ
217χ1χ
•χ111618x
•- χ1X
4:1369
129492I1(4χ
ι1χ17785
725xt
ili
XI
It I
rxII
iiiι1(13χ
ι-X39i-
i•i
i•t
• x
s TOTAL χ9:261048χ1χ111618χS:130681x2x18510ι·ι > i• i•i 1•I•!ι1ι 39ι i•i
«UlNE Intervention :26:151426:1 -x i26x151426 x•i x* I-I 1-X•I·I X X X
:NON-ANNEX IXPRODUCTS Refunds 4 18648x • χ•X χ3(4χ16940i•x χ"I• II-1 X•X•t1 X 1708.
X01LSANDFATS 2 χ•X- X X-X I•1 t"X ι2ι(12i•x•J•x X• X• I
XEGGSANDP0ULTRYMEAT Refunds x2x1138660χ1χ1138641x-χ X•t I•I t"I I•X-II1(13t 19i•i x
:FISHERY PRODUCTS Refund* x2x4549x-χ 2x4549 x • t <•I >•t i• r-i-i•i x x• X
:FRUITANDVEGETABLES Refunds χ1 9536x-x •ι1χ9536χ-χ I·X X• I\-1 I•X•11• X X· X•I
SFLAX Intervention :1 197x•x• χ•X X·X X·I I·I I-I I•••I:1I 197 X•X•I
:MXSCELLANcw . -χ χ-χ ι·I I·χ ι-II X•I-1I1(1$I 1250χ· • I
X
xTOTALRefunds
Interventionx37
:56χ1550
:4212721χ
060χ2χ
-χ1250259χ11χ
5?185640
1566949χ
ι43χI95
496131
300χ6ι8ilt14)8
445ι
χI
> I7:t1176209xti
IX!t9 <
i2xI11
381253
412χ
χt
XI
X
X TOTAL :95χ5762781:2χ1250259x16:342334X52il591431χ719883ι·t I7iι1176209x•x-It11XI392665 χ• I
:MONETARY COMPENSATORY AMOUNTS :81χ2749865:2(1: 99χ•χ χ12(5χ275482χ1(8χΡ149χ4(9 587ι•i χ·χ·ι:4(16χ 486χ58(18 :2453862χ
:ACCESSION COMPENSATORY AMOUNTS x5 26773x-χ• χ x3(6I3855ι·ι χ2(10ι22918ι•ι t-I• X•χ I·χ•I
xGRANOTOTAL :169i8539419:4:1250358χ16χ342334x61 x1670768:8x22232 Χ6(11 χ30505 1t7jt1176209ιs•x•i9(17χ1393151χ58 x2543662χ
:ofwhichrecovered χ45:1580188:(2:446'.7χ9:264991 i22:571625 x1x3572 χ·χ•i
ma-
muM•X•I7ι11741χ6 683612x
NOTES
1.Inonecasetheamountisyettobedetermined,
onecaseconcerns pigment andbeefandvealand
onecaseconcerns pigmeat.
2.Inonecaseonlypartialrecovery
3.Onecasealsoconcerns pigmeat,theamountinquestionisyettobedetermined *
4.Or.#casealsoconcerns MCAs.
5.Onecaseconcerns cereals,twocase*beefandveal,fourcasespigmeatandtwocase*milkproduct*endthro*
casesnon-Annex IIproducts .Threecasesalsoconcern MCAsandthreecasesalsoconcernrefund**
6.Twocasesconcernpigmeat,onecasebeefandveal;thethreecase*alsoconcern MCAs.
7.Infourcasestheamountsareyettobedetermined .
8.Thiscaseconcerns cereals. •
9.Intwocasestheamountsareyettobedetermined;twocase*concernbeefendveal,onecasecereal*and
onecase Milkproducts .
10.Inonecasetheamountisyettobedetermined ;thesetwoeasesconcernbeefandveal.
11.Sinattempted caseshaveadsobeencommunicated ,plustwelveothercase*wheretheunduepayments weremedeIn
another MemberState.1?.Amount*yettobedetermined .
13.Onecaseconcernsmilkproducts,poultrymeet ,pigmeetendMCAs.
14.Oneothercasealsoconcerns MCAs.
19.Thiscaseconcern*severalsectors:meet,milkproducts,egg*end
poultrymeet ,cereals,sugar,non-AnneiItproducts <*h1ps'stores),•>well
a*MCAs.
10*Onecaseconcernsmilkproducts endeggsendpoultrymeat ;onecasenon-
AnoeiIIproducts ;onecasemilkproducts;onecase1*described inNote15j
ellthesecesesalsoconcernrefunds.
17,Fiveattempted caseshaveetsobeencommunicated ;theyerenotcoveredher*
because nopayments weremade.
18.Forty-three casesconcernbeefendveel;*1*pigmeet;threecereals;three
eggsendpoultrymeat ;onemilkoroducts;onebothbeefendveelendcereals;
oneconcerns non-Anne «IIproducts;theamount*areyettobedetermined in
ninecases.

-93-
ANNEX GXIV
Communication of iregularities Article 4ofRegulation
283/72)likely tohave animmediate effect inother Member
States
' Member
^*sNs «>tate
YearΒ D DK F IRL I L NL UK COM Total number
ofcases
per year
: 1972 1 : 1 :
: 1973 1 : 1 : 2 :
: 1974 :2 ! :2 : 4
: 1975 1 ::3 : 1 ::5 ;1 : 11 :
: 1976 1 : :4 :;3 : :1 ::4 ::3 : 16 :
: 1977 :3 :1 1 ::2 : :17 ::2 :: 26 :
5 2 9 8 2 28 6 60 :
1) Note that 13cases covered traffic between Ireland and Northern Ireland where
there areexceptional difficulties owing tothedifference between therespective
green pounds andtoanaturally complex frontier .

ANNEX AI
SUMMARV OFIMPLEMENTATION FORTHE197?FINANCIAL YEAR
Chapter 92*Community foodaid
:APPROPRIATIONS AVAILABLE nu.a. IMPLEMENTATION Mu.a.XUTILIZATION ;
:A.APPROPRIATIONS FORTHECURRENT YE/R: C.COMMITMENTS -
:1.Initialappropriations :178,4:1.Totalcommitments :176,4 : 98,9 :
:2.Supplementary budget : a)Globalcommitments «70,2:
-Amountsspecifically committed :
:3.Transfers (1) : outofglobalcommitments 51,4 :
-Balanceofglobalcommitments :18,8 :
•carryover to1978 18,8 :
•lapsed :
b)Amountsspecifically committed ::106,2 :
(commitments underArticle 40of:
theFinancial Regulation ,direct :
• s payments,rectifications for j
clearance of1974accounts ) :
2mSumsnotcommitted 2 1,1 :
: TOTAL :178,4
ζTOTAL 178,4
χ100 :
:B.APPROPRIATION FROMTHEPREVIOUS n.PAYMENTS
:FINANCIAL YEAR .
:-Automatic carryover from1976 «172,2 :1.Application ofcarryover from1976 >
•-Non-automatic carryover frop * -Payments a)fromauto,carryover>117,9 :
•• 1976 :17,1: b)fromnon-automatic
carryover-Lapsed 54,4 :
. TOTAL 189.4 : TOTALCARRYOVER fROM1976 :IîftQ^I:>•SIS s
I,l
IyI :LU :
2.Application of1977appropriations
a)Payments s52,6 : 14,3 i
b)Carryover to1978
•Appropriat ionsspecifically
• comm.&carriedoverauto.to'78 105,-
.Appropriations globally comm.
t ftcarried overauto,to1978 18,8
: .Unusedappropriations :non-
automatic carryover to1978
s TOTALCARRYOVER FROM1977TO1978:123,8: 33,7 »s
3.Appropriations lapsed
: .outof1977allocation :2
: TOTALAPPROPRIATIONS LAPSED :2: 0,5 :
TOTAL #TOTALAPPROPRIATIONS AVAILABLE:ζ
:(x*y)=z 367,7 :367,7 : 100 :
(J)Thesearepossibletransfers fromtitletotitleaffectingtheoverallsumavailableunderTitles6and7.

ANNEX AII
Cashposition at31.12.1977
•MEMBER STATEAdvances granted
from1.1.1977
to31.12.1977Availability at
31.12.1976Expenditure -fro*
1.1.1977 to
31.12.1977Clearance ofthe
1974accountsAvailability at
31.12.1977
a b c d «♦b•(c+d)s
'BELGIUMFB
u.a.1.058.500.000
21.170.000130.784.435 ,-
2.615.688.701.204.247.392
24.084.947.84-865.413
-17.308,26-14.097.S44 :
281.950,88 :
'DENMARKDK
u.a.-0-
-0--0-
-0--0-
-0--0-
-0--0- :
-0- :
*GERMANYDM
u.a.194.199.600
53.060.00030.458.115,91
8.321.889,59205.190.590,45
56.063.002,86-63.418,26
-17.327,3919.530.543,72 :
5.336.214,12 :
FRANCE'FF
u.a.329.918.886
59.400.00028.083.819,40
5.056.330,34298.254.580,14
53.699.023,65-253.705,77
-45.678,2760,001.831,03 :
10.802.984,96 :
!IRELAND£
u.a.1.689.627,71
4.055.103,261.041.719,93
2.500.125,832.676.171,18
6.422.805,69-0-
-0-55.176,46 s
132.423,40 :
ITALYLit
u.a.16.076.250.000
25.722.0005.851.445.173 ,-
9.362.312,2820.626.298.011
33.002.076,82-149.076.175
238.521,881.450.473.337 :
2.320.757,34 :
'LUXEMBOURGFlux
u.a.17.052.797
341.055,94699.422 ,-
13.9S8.4417.752.219
355.044,38-0-
-0--0- !
-0- :
'NETHERLANDSFL 41.474.340 :-2.917.006,04 :36.381.32S.21 :337.827,71 1.838.181,04 :
u.a.:11.457.000 :-805.802,77 .i10.050.089,84 :93.322,57 507.784,82 :
i
*UNITED KINGDOM£
u.a.36.824,63
88.379,0436.824,63
88.379,04-0-
-0--0-
-0--0- ■•:
-0- :
:TOTALEEC u.a.175.116.780,16 27.152.911,45 183.676.991,08 -225.513,23 18.818.213,76 :

ANNEX AIII
EXPENDITURE DECLARED
MEK8SR
STATECereals (a)Declared expenditure Inu.a.
s
Milkproduct*(b) Sugar(c)TOTAL
(•♦b♦c)Clearance of
the1974
•ccounts
<c)Advances
granted
f(1)Cashavailable
inMember
States
f-(d♦c>
BELGIUM
DENMARK
GERMANY
FRANCE
IRELAND
ITALY
LUXEM90UR6
NETHEUANÛS
:UNITED KINGDOM7.832.878,34
0
21.822.501,50 i
39.383.751.81 t
o;
33.002.076.82
0
t
2.417.606,68
0η
0%
21*
38%
0%
32%
0*
2%16.245.645,90 t21%
i
0ι
33*196.125,40 i43%
t
13.539.786,49 ι18%
S
6.422.805,69 :8%
0ι0%
*
355.044,38 ι0%
ι
7.632.483,16 :10%
ι
0t
t6.423,60
00%
1.044.375.96 <37%
S
775.485,35 43%24.084.947,84 :!13%
0 0%
56.063.002,86 :ι30%
53.699.023,65 :!29%
6.422.805,69 :I
4%
i
33.002.076,82 :!18%
355.044,38 ιι0%
10.050.089,84 !6%
0ι0%17.308,26
023.785.688,70
Ο
61.381.889,59
64.456.330,34
6.555.229,09-281.950,88
Ο
5.336.214,12 «
10.802.984,96
132.423,40
35.084.312,28 :2.320.757,34
355.044,38 > Ο
10.651.197,23 :507.784,82
Ο: Ο«ο
104.458.815,15 :: χ
100%t77*331.691,021100%
: :1.826.284,91 :100%183.676.991,08 :100%t-225.513,23 *202.269.691,61 :18.818.213,76
Expenditure atthelevelofCommunity prices (inM'u.a.)
Cereals Dairyproducts Sugar
Worldprice(Mu.a.)
(including transport
costs)
Refunds (Mu.a.)
Expenditure resulting
fromtheapplication of
the"dualrate"
-Community prices104.458
60.340
6.084
170.88277.391
150.064
0.269
227.7241.826
0.707
-0.015
2.518
(1)Including bi 1977.

Co»eunity foodAidfinancedf<c-theCoraunity Pudcet
_ (foodAiJCh.-.jter) ^
.f^iuncUl
!y«tr
Cereals «ndrice
,1968/69Sehe»«
tBengalirefugees
,1971/72Sehen«
Cereals andrice
s1969/70Scheae
s1971/72Scteae
j-1972/73Schea«
sSugar
i1stConvention
!WUhproducts
s(boughtonaarket)
i
t(99products
:
:HUfcproducts
*Sugar
sIstConvention
:Cereals andrice
i
I1970/71Sct.ea«
t1971/72Scheie
I1972/73Sehe*«
i1973/7*Sche«e
jHiIkproducts
t(boughtonMarket)301.000,000
30.000.000
135.500,000
180.234,000
264.900,000
1.212,000
9.020,000
300,000
34.580,873
3.939,320
•.500,000
103.765,000
168.612,000
448.500,000
4.832,700Anounts
u.a.
18.842.681,00 (1)
4.907.329.00 (1)
22.148.041,85 (1)
20.392.330,63 (2)
34.915.636,66 (2)
1.398.374,25 <2
2.145.266,96 (2
1.485.831,61 (1
21.178.366,23 (1
1.052.111,09 (1
105.572.966,09 (2)
652.675.57 (3)TOTALS
u.a.
23.750.210,00
104.716.179,28
106.225.641,6*
sCerea'.s Hce
:1966/69Sehe**
t1970/71Schee.«
:1971/7?Scher«
s1972/73Scher«
:1973/74ScKe«e
<1974/75Schea«
•Shieieed *itkpe«der
s1975Prograac «
t
!Butteroll
:»rogra-wes priorte1975
t1975Progrtæe
iisaîi
:1stConvention
:Cereals
:
:1970/71Scheae401,000
469,500
20.001.000
25.CO.000
126.637,000
509.081,000
26.668,000
24.106,000
25.437,000
6.411,000
4.094,000
J.000,000
348.070,500163.979.335,46 (2)
1.289.730,65 (3)
ία.οοο,οο(4)
25.135.288.68 (1)191.152.154,79 :
M.121,01(5)s
Cereals andrice
1972/73Scheae
1973/74Sehe««
1974/73Scheae
1975/76Scheae
Butteroil
1974Progrmae
1975Prograane
1976Prograaoe
Skiaaedoilkoovder
1974Progra»
1975Prograai
1976Progri*
Sugar
1975Prograai5.000,000
4.863.000
120.419,000
160.620,000
400,000
31.994,000
7.110.000
9.630,000
24.344,000
21.028,000111.470.995.01 (2)
4.206.470,88 (3)
115.877.465,89
Cereals andrice
1969/70Schea«
1970/71Scheae
197fc/73Scheae
1975/76Scheae
1976/77Schea«
Outteroil
1974Prograane
1975Prograrve
1976Programme
1977Prograaae
Skiaxedailkpewder
1975Prograw :»
1976Pr>]riu«
1977Programme
îam
1977Progra***"1.400,000
100,000
12.000,000
508.380,000
434.851,000
300,000
7.015,000
29.264,000
4.200,000
SCO,OC"
94.96-1,000
4.102,000183.676.991,08 (2)
4.007.543,10 (3)
187.684.536.18 '
225.51J.23 (65

-98-
EXPLANATORY NOTESTOTABLE AIV
(1)Finalfigurescorresponding toaiddecisions orCommission
decisions ontheclearance ofaccounts .
(2)Provisional figurescorresponding tothemonthlystatements
oftheMemberStates.
(3)Directpayments tocertaincountries oragencies receiving
lump-sumcontributions towardsthecostofforwarding or
distributing goods.
(4)Equivalent of2000tonnesofsugarpaidforincash.
(5)Correction ofthefigures shownunder(2)following the
clearance ofaccounts forthefinancial year1973.
(6)Correction ofthefigures shownunder(2)following theclearance
ofaccounts forthefinancial year1974.
TableAIgivesanoverall viewoffoodaidgrantedbytheCommunity
ineachfinancial yearsincethebeginning ofthescheme.
Thistablecoversonlyaidenteredunderthe"foodaid"headingof
theCgmmunity budget,andexcludes Community foodaidinintervention
milkproducts financed upto31.12.1974 bytheEAG6FGuarantee Section.
Uptoandincluding the1974financial yeartheamountscorrespond to
thevalueofthegoodsatCommunity pricesinthecaseofmilkproducts ,
boughtonthemarket,sugarandeggproducts,whilethefiguresgivenfor
cerealsarenetofrefunds .
From1975onwardsallfiguresexcluderefunds.

ΑΝΑ/εχΑV.
fcwraoHttfena -1»yylu<w<«»>.«.)
9210
ι4211
ι9212
ι9220
ι9Γ21
923I
ι
924ι;ClM»LS
■ti'sri1977
i*1977
>Dairyproduct*i
;0#foft1977 |
•SklaaadaHkpew.77
:ftwttaroU 1977 <
;tUG«>
s0a<oro1977
, 1977
:0th«rcroducta
lOtharaieandltur
■MW(porepr(ition*
carried forward
froa1976
1U.7M .992.4*
119.502.910.M9.000.000
•1.200.000
41.SOO.000
47.000.000
f.m.
1.000.000
171.400.000TriM'iri (1)
♦I.SIX.903,Il
-934.715,12
-1.427.991.41
m.ooo
119.161.M79.919.954,4*
•1.969.190,70
III.943.297,01
40.945.296,41
49.912.40*.3*
117.423,60
1.119.1*1,30
1.000.000
947.702.910.11
<1)Contribution !andtransportc«itipaiddirectly bythe(omIiiIm
(2)Co*a1ia«nta aadaontK«bailaofArtlcla40oftrioFinancial Mediation
<J>Tran»4ara withinChapter92i*111.000 Itaa9220)....
♦119.861,30 1taa9221)***0.061,90It*MOT
•2.942.309,19 Ito*9210-994.719,52 Mm9211
-1.427.991,41 Hoa9212Mvmtt taRaabor
Stitii1nelwdln «
balancaat91.12.76
202.249 .491,41i
1977n«*A4M«r*i llrfllMMAtl iCorractlona tUnw«t«1AVTCATIC CAMYFCSWAaO
r :Carr1*dforvardtAripropr4at1om t
lal«byMaafcari
ttaui i
ιbytha
(OWllllM <1l(following claar-i
i«n<aoftho1974j
ItCCOtfltl Iappropriation *iArticle 6C
iofthafin,
iftaou'.atlon (?)iArticleIII
I©ftha*1n.
:Regulationjby icancelled
CowncH i i
! t i
r i i h i
i «J
Iik■a•r-bI15·
i t ;
44.794.970.99
97.414.449.10 .S.994.494,14
210.479,44-200.942,97 4.439.112,40
44.136.010,06 ι29.900.000i t
t i
i t
t i
■t
70.074.972,44 ι
1.&Α3.923,·· ι
9.0)9.992,96 ι
ιI.161.499,90•17,190,44 .90.144.500,71 :
30.901.760,60 ι
39.692.413,43 :94.900.000
99.000*000i t i
L i iI*i i
: t i
ι ι :
4.423,40 i
1.019.461,30 i
i
ι111.000
i l t
ι ι '■
I
144.000 iI I
l i
i l•94.000 ι!
1I t t
I > ■S
» i >
i
103.476.991,41 ι4.007.949,10i i
ι-223.919,29 ι100.249.007,40 :ι103.000.009 i18.8)0.213.23: : t
ι-0· :36.423.474,17 1
I,
ta
ca
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