ARCHIVES HISTORIQUES
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DOCUMENTS "COM"
COM(75)332
Vol.1975/0129

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(75)332 final
Brussels .2July1975
PROPOSAL FORA
REGULATION (EEC)OPTHECOUNCIL
establishing asystemofaidtoorganizations ofsilkwormrearers
(submitted totheCouncilbytheCommission )
COMC75)332final

EXPLANATORï MEMORANDUM
Tohelpsilkwormrearerstomeetthedifficulties resulting fromthepresent
eoonomiosituation inthisseotor,theCouncil,atitsmeeting on10and11Fe­
bruary1975,requested theCommission "tosubmit,asquicklyaspossible ,apro­
posalforaRegulation granting Community aid,foraperiodofthreeyears,to
recognized groupsofsilkworm'.rearers formedtoimprovethemarketing organization
oftheproduots oonoerndd ,soastoencourage theformation ofsuchgroupsand
facilitate theiraotivity.H
Theaimofthisproposal foraRegulaiion istoimplement theaboveCouncil Reso­
lution,pendingtheadoption bytheCounciloftheproposalforaRegulation oon-
oerninggroupsofagricultural produoers andassociations thereof *
Thisdcaftaimstofacilitate thesettingupandoperation oforganisationsof
silkworm rearerstoimprovethemarketing oftheirproducts.
Itisproposed thatorganisations recognized bytheMemberStateconcerned should
begrantedadegressive aidforthreeyearsbasedonthevalueofthecocoons
marketed bytheirmembers.Forthefirst,secondandthirdyearsrespectively ,
theaidwillbe9$»and3*foofthevalueofthecocoonsmarketed.Implementation
ofthemeasureshouldbecompleted notlaterthanfiveyearsaftertheentry
intoforceoftheRegulation inquestion.
ThedraftRegulation alsosetsouttheconditions organisations mustfulfilto
obtainrecognition ;forexample,theorganisations maynothavemembersotherthan
silkwormrearersandtheiractivities mustbelimitedtothefirststageofmar­
keting,-thatis,thesaleoftheproduots ofsilkwormrearingtothewholesale
tradeortouserindustries .

Proposai
fora
REGULATION (EEC)No...«/75CPTHECOUNCIL
establishing asystemofaidtoorganisations ofsilkworm rearers
THECOUNCIL OPTHEEUROPEAN COMMUNITIES ,
HavingregardtotheTreatyestablishing theEuropean Economio Community ,andin
particular Artiole43thereof;
Havingregardtotheproposal fromtheCommission ;
HavingregardtotheOpinionoftheEuropean Parliament ;
Whereas ,inordertohelpensureafairincomeforsilkwormrearersandstabilize
themarketintheirproducts ,thecentralization ofsupplyanditsadaptation tothe
requirements ofthemarkedthroughjointaction,byrearers,shouldbeencouraged ;
Whereastheseobjectives maybepursuedbytheformation ofproducers' organizations
whichobligetheirmemberstocomplywithcertainrulesregarding production and
marketing ;
Whereas,toavoidanydiscrimination betweenproducers andensuretheunityandef­
fectiveness ofaryactionundertaken ,conditions shouldbefixed,applicable throughoi±
theCommunity ,withwhichproducers' organisations mustcomplytoqualityforreco­
gnitionbytheMemberStates;
Whereasprovision shouldbemadeformeasures designedtofacilitate thesettingup
andfunctioning oftheseorganisations ;whereas,tothisend,MemberStatesshouldbe
allowedtograntthenecessary aid;whereas,however,suchaidshouldbelimitedin
IDSamountandshouldtemporary anddegressive sothatthefinancial responsibility of
producers willprogressively inorease ;
Whereasthemeasures proposed areofimportance totheCommunity fortheattainment
oftheobjectives setovitinArticle39(l)(a)oftheTreaty,inoluding thestructu­
ralchangesnecessaiy fortheproperworkingofthecommonmarket;whereasthesemea­
surestherefore constitute acommonmeasurewithinthemeaningofArticle 6ofCouncil
Regulation (EEC)NO729/70^^of21April1970onthefinancingofthecommonagricul–
2)turalpolicy,aslastamendedbyRegulation (EEC)NO2788/72;
Whereas 5oftheaidexpenditure concerned shouldbefinanced bytheCommunity ;
HASADOPTED THISREGULATION %
(1)OJNoL94,28.4.1970 ,p.13
(2)OJNoL295,30.12.1972 ,p.1

Article 1
Forthepurposes ofthis Regulation ,"producers' organisation "means anorganisa­
tion ofsilkworm rearers ,oranassociation ofsuch organisations ,formed "bythe
rearers themselves forthefollowing purposes ,inparticular :
(a)tocentraliae supply ;
(b)tomake available ,totheassociate rearers ,adequate technical resources for
thepreparation ,storage ,andmarketing oftheir products ,oncondition :
-that alltheir production ismarketed (first stage ofmarketing )bythe
producers' organisation ;theorganisation being able ,however ,toexempt
rearers from this obligation inrespeot ofcertain quantities ;
-that they apply ,inrespect ofproduction andmarketing ,therules adopted
bytheproducers' organisation designed toadapt thevolume ofsupply to
market requirements .
Forthepurposes ofthisRegulation ,"first stage ofmarketing "means the sale
tothe wholesale trade ortothe user industries .
Article 2
Member States shall reoognize producers' organisation insofar astheir activiiies
include theproduction andmarketing ofcocoons andwhich request recognition and
fulfil thefollowfng^oonditions together with those laiddown inArticle 1;
they should :
(a)provide evidenoe oféconomie aotivity onanadéquate soale ;
(b)exolude ,throughout their field ofactivity ,anydiscrimination whatsoever
between Community rearers inrespect of,inparticular ,their nationality or
plaoe ofestablishment ;
(o)fulfil theconditions laid down bytheprovisions oftheir national legisla­
tion ;
(d)include intheir statutes :
(aa)theobligation tokeep separate aocounts fortheactivities inrespect
ofwhich they have been recognized ;
(bb)provisions aimed atensuring that members ofanorganisation whowish to
give uptheir membership maydosoafter atleast three years provided
they inform theorganisation oftheir intention atleast oneyear in
advance *

~3-
(e)havenomembersotherthansilkwormrearers.
2.Theautority competent torecognize producers' organisations shallbethe
MemberStatewithinwhoseterritory theproducers' organisation hasitsregis­
teredoffioe.
Artide 3
Anassociation ofproducers 1organisationsmaynotreceiveaidexceeding atotal
of20.000u«a*
Article 4
MemberStatesmaygrantaidtorecognized producers' organisations forthreeyears
following thedateoftheirrecognition toencourage theirformation andtofacili­
tatetheiroperation.Forthefirst,secondandthirdyearsrespectively ,the
amountsofsuchaidmaynotexceed9and3$ofthevalueofthecoooonsmarke­
tedbytheproducers' organisation .
Theaidmustnot,however,exceedduringthefirstyear80$,duringthesecond
year6($,andduringthethirdyear40^»oftheorganisations administrative costs.
Thevalueofthecoooonsmarketedshallbecalculated atastandardrate,foreach
year,onthebasisofs
-theaverageoutputmarketed bymembersduringthethreecalendaryearspreceding
theirjoining;
-theaverageproduoerprioesobtained bymembersduringthesameperiod.
Article 5
Detailedrulesfortheapplication ofArticles1-4shallbelaiddowninaccor­
dancewiththeprocedure providedforinArticle12ofCounoilRegulation (EEC)
No1308/70^of29June1970onthecommonorganization ofthemarketinflaxand
hemp.
Article 6
1.ThemeasuresprovidedforinthisRegulation shalltogetherconstitute aoommon
measurewithinthemeaningofArtiole6(l)ofCounoilRegulation (EEC)Ho729/70
of21April1970onthefinanoing oftheoommonagricultural polioy.
(1)OJHoL146,4.7.1970,p.1

-4-
2.Expenditure incurred byMemberStatesasaresultofthemeasures providedforin
thisRegulation shallqualifyforaidfromtheGuidanceSectionoftheEAGGF.
3.TheGuidanceSectionoftheEAGGFshallreimburse 50/0oftheeligibleexpenditure
totheMemberStates *
4*Requestsforreimbursement shallrelatetoexpenditure incurred byMemberStates
duringagivenoalendaryearandshallbesubmitted totheCommission before1May
ofthefollowing year.
TheCommission shalldeoideontheserequest,togetherorseverally ,inaccordance
withtheprocedure providedforinArticle7(l)ofRegulation (EEC)No729/70.
3*Theestimated totalcosttotheEAGGFoftheoommonmeasure^is100.000u.a.
6.Thecommonmeasureshallbeimplemented overaperiodofnotmorethanfiveyears
fromthedateofentryintoforoeofthisRegulation .
7.Thearrangements fortheapplication ofparagraph 3shallbefixedinaccordance
withtheprooedure providedforinArticle13ofRegulation (EEC)No729/70*
ThisRegulation shallbebindinginitsentirety anddireotlyapplicable inall
MemberStates.
Doneat FortheCounoil

FUTMCIM ;ANNEX
•totheproposalfora.CounoilRegulation settingup
asystemofaidtoorganizations ofsilkwormproducers#
1.Artiole4oftheproposalforaregulation providesforaidof9^»and3%
ofthevalueoftheproduction ofooooonsmarketed layproducers 1organizations .
2,Itroughlyisestimated that:
-theannualproduction ofcocoonsintheCommunity amountsto600,000kg.
Allowing1.8u.a.perkg,thetotalvalueoftheproduction ofoocoonsis
therefore 600,000x1.8»1,000,000u.a.inroundfigure;
-theentireproduction ofoocoons may"bemarketed "bytheproducers' organizations ;
-fourgroupsofproducers areeligibleforaidandoneUnionisreoognized .
3,Iftheentireproduction ismarketed "bytheproducers' organizations ,aidwill
total9$+6$+3$=»18$ofthetotalvalueofproduction ,i.e.0.18x
1,000,000u.a.■=•180,000u.a.,ofwhich59/£isfinancedbytheEAGGF,i.e.
90,000u.a.
Moreover ,someproducers' ortanizations maytakeadvantage oftheopportunity
offeredtothemtoformaunion.Provision shouldtherefore bemadeforexpen­
ditureforthispurpose,amounting to20,000u.a.,ofwhich50$ti«e«10,000u.a.,
wouldbefinanced bytheEAGGF.
4.Itisadmittedthat:
-thefourproducers *organizations areofequalimportanoe andwilleachreceive
atotalof45»000u.a.inthefollowing instalments :
22,500u.a.thefirstyear,
15,000u.a.thesecondyear,
7,500u.a.thethirdyear.
-organizations andassociations shallbesetupatthefollowing rate:
1976:3organizations
1977:1orgamzation
1978î1association
•Α

Thecostspreadistherefore asfollows :
Year Totaloost
(inu.a»)Finanoed .bythe
EAGGF,Guidance
Seotion
1976 67,500
1977 67,500 33,750
1978 57,500 33,750
1979 7,500 28,750
1980 3,750
Totals 200,000 100,000