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DOCUMENTS "COM"
COM(75)327
Vol.1975/0116

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COMMISSION OFTHEEUROPEAN COMMUNITIES
*
COM(75)327 final .
Brussels .26June 1975
Proposal for a
REGULATION (EEC )OFTHECOUNCIL
amending Regulation No120/67/EEConthecommon organization of
the market mcereals
Proposal fora
REGULATION (EEC)' OPTHECOUNCIL
amending Regulation No359/67/EEConthecommon organization of
the market inrice
Proposal fora
REGULATION (EEC )OFTHECOUNCIL
onproduction refunds inthecereals andrice sectors
(submitted bytheCommission totheCouncil )
COM(75 )327final .

EXPLANATORY MEMORANDUM
Thepurposeof"thisproposalis"tocomplete "theCouncil'sdecisionregarding
starchproduction refundsduringthe1975/76marketingyearandalsotoavoid
difficulties whichwouldhavearisenifrefundsonmaizegroatsandbroken
riceusedforbrewingwereterminated whilstthoseonstarchusedforbrewing
weremaintained .Thefollowingratesofrefundareproposed :
a)MaizeusedforStarch 9*25u.a./ton
b)WheatusedforStarch 15*10u.a./ton
c)BrokenRiceforStarch11.40u.a./ton
d)PotatoStarch 14*90u.a./ton
e)MaizeGroatsandBrokenRiceusedforbeer;ratesderivedfroma)andc).
Refundsforwheat,brokenriceandpotatostarchhavebeenderivedfromthe
maizerefundof9*25u.a./tonasfollows:
1974/75-Averagemaizerefund«23-51u.a./ton
1975/76-Proposedmaizerefund»9*25u.a./ton
(ie.areductionof60.66$)
Applyingthesamepercentagereductiontobothwheatandbrokenriceresults
a)1974/75-Averagewheatrefund ■38.28u.a./ton
Reductionof60.66$ *23*22u.a./ton
1975/76-Proposedwheatrefund-15*06u.a./ton
say15*10u.a./ton
b)1974/75-Averagebrokenricerefund«28.96u.a./ton
Réductionof60.66$ -17*57u.a./ton
1975/76–Proposedbrokenricerefund■11*39u.a./ton
sayllc40u.a./ton
Theproposedrefundonpotatostarchandtheminimumpotatopricehavebeen
derivedasfollows:
a)Refund
1975/76Proposedmaizerefund=9*25u.a./ton
1975/76Potatostarchrefund ■9*25x
■14*89u.a./tonsay14*90u.a./ton

-2-
b)Minimumprice
1975/76-Augustmaizethresholdprice
1975/76-Proposedproduction refund
1975/76-Effective supplyprice
χΟοηνβΓβχοη Γ&ΐβ(1.61)
Allowance forvalueofbyproducts
andtransportcosts(-27*70)■I56.O8u.a./ton
Thus,theminimumpriceforquantityofpotatoes requiredformanufacture
of100kgofpotatostarch■15.608
3.SincetheCouncildecidedtofixaflatrefundwhichgivesrisetosubstantial
amendments totheexistingtextofCouncilRegulation (EEC)So1132/74and
sincetherehavebeenanumberofotheramendments tothisRegulation during
thecurrentmarketingyearitisproposedtorepealRegulation (EEC)So1132/74
andtopublishtheprovisions relatingtorefundsinanewRegulation *
4*However,beforerefundsongroatsandbrokenricecanbereinstated ,modifications
toCouncilRegulation (EEC)So120/67andSo359/67willalsoberequired.Amend­
mentstotheseRegulations necessitate thattheEuropean Parliament be
consulted .
5*Byslightlyreducingtheoverallrateofrefund,(eg9*25u.a./tonformaize)
fromthatoriginally decidedbytheCounciltheinclusion ofgroatsandmead
andbrokenrice(forbrewing)shouldnotincuradditional expenditure .m123*40u.a./ton
■9*25u.a./ton
■114.15u.a./ton
■183.78u.a./ton
■156.08u.a./ton

Proposal for a
REGULATION (EEC)TTn /-j*ppTHECOUNCIL
amending Regulation NoI20/67/EEConthecommon organization ofthe
market incereals
THECOUNCIL OPTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,and
inparticular Article 43thereof ;
Having regard totheproposal from theCommission ;
Having regard totheOpinion oftheEuropean Parliament ;
Whereas Council Regulation NoI20/67/EEC of13June 1967onthecommon
organization ofthemarket incereals ,aslast amended "byRegulation (EEC)
No665/75^provides inArticle 11foradiscretionary production refund for
certain products used forthemanufacture ofstarch orpotato starch orinten­
dedforthemanufacture ofglucose ,"butdoes notprovide forthepossibility
ofgranting arefund fortheproduction ofmaize groats andmeal foruseby
thebrewing industry inthemanufacture ofbeer asfrom 1August 1975 *
Whereas theabsence ofsuch arefund fortheproduction ofmaize groats and
meal forusebythebrewing industry inthemanufacture ofbeer oould ,inthe
circumstances likely toobtain ,disturb thebalance between thecost of
supplying thebrewing industry with maize starch ontheonehand ,andwith
maize groats andmeal ontheother ;therefore itappears necessary toprovide
foradiscretionary refund fortheproduction ofmaize groats andmeal foruse
bythebrewing industry inthemanufacture ofbeer ;
HASADOPTED THIS REGULATION :
1)OJNo117,19.6.1967 ,p.2269/67
2)OJNoL72,20.3.1975 »s.14.

Article 1
Thetext ofArticle 11(l)ofRegulation No120/67/EECshall becompleted by
theaddition ofthefollowing subparagraph !
d)formaize used intheCommunity bythemaize industry forthemanufacture
ofmaize groats andmeal (gritz )used intheCommunity brewing industry for
theproduction ofbeer .
Article 2
This Regulation shall enter into force on1August 1975 *
This Regulation shall bebinding in
all Member States *
Done atBrus sels .itsentirety anddirectly applicable in
For the Council
The Président

Proposal for a
REGULATION (EEC)No /75OFTEECOUNCIL
amending Regulation No359A>7 /EEConthecommon organization ofthe
market inrice
THECOUNCIL OPTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,and
inparticular Article 43thereof ;
Having regard totheproposal from theCommission ;
Having regard totheOpinion oftheEuropean Parliament ;
Whereas Article 9ofCouncil Regulation No359/67/EEC^of25July1967on
thecommon organization ofthemarket inrice ,aslast amended byRegulation
(EEC)No668/75 provides foradiscretionary production refund forbroken
rice used bythestarch industry forthemanufacture ofstarch butdoes not
provide forthepossibility ofgranting arefund fortheproduction ofbroken
rice forusebythebrewing industry inthemanufacture ofbeer asfrom 1
September 1975 }
Whereas theabsence ofsuch arefund oould inthecircumstances likely toobtain
disturb thebalance between thecost ofsupplying thebrewing industry with maize
starch andmaize groats andmeal ontheonehand andbroken rice ontheother ;
therefore itappears necessary toprovide foradiscretionary refund forthe
production ofbroken rice forusebythebrewing industry inthemanufacture of
beer ;
HAS ADOPTED THIS REGULATION :
1)OJNo174»31.7.1967 »P.1.
2)OJNoL72,20.3.1975 »P«18

Article 1
Article9(l)ofRegulation No359/67/EECnhsllbereplacedVthefollowing :
1.Aproduction refundmaybegrantedforbrokenriceused
a)inthemanufacture ofstarch
b)bythebrewingindustryfortheproduction ofbeer.
Article 2
ThisRegulation shallenterintoforceon1September 1975*
ThisRegulation shallbebindinginitsentirety anddirectlyapplicable inall
MemberStates.
DoneatBrusaels,
FortheCouncil
ThePrésident

Proposai fora
REGULATION (ESC)NO OPTHECOUNCIL
onproduction refundsinthecereals andricesectors
THECOUNCIL OFTHEEUROPEAN COMMUNITIES ,
HavingregardtotheTreatyestablishing theEuropean Economic Community ;
HavingregardtoCouncilRegulation NoI20/67/EEC^of13June1967onthe
commonorganisation ofthemarketincereals,aslastamendedbyRegulation
(EEC)No665/75andinparticular Article11(3)thereof;
HavingregardtoCouncilRegulation No359/67/EEC^of25July1967onthe
commonorganisation ofthemarketinrice,aslastamendedbyRegulation (EEC)
No668/75^tinparticularArticle9(2)thereof;
Havingregardtotheproposal fromtheCommission ;
Whereas,onaccountofthespecialsituation onthemarketinstarches and,in
particular ,theneedforthestarchindustry toensurethatitspricesare
competitive withthoseofsubstitute products,Regulation NosI20/67/EECand
359/67/EECprovidedforthegrantingofaproduction refund,inorderthatthe
starchindustry mightobtainthebasicproductsitrequiresatalowerprice
thanthatwhichwouldresultfromtheapplication oftherulesofthecommon
organisation ofthemarketsintheproducts inquestion ;
fromthelevelofcommonpricesand
Whereasanassessment ofthesituationresulting/fromthecompetition between,
ontheonehandmaizestarch,ricestarchandpotatostarchandontheother,
thesubstitute chemical products ,indicates thattheproduction refundonmaize
usedinstarchmanufacture shouldbefixedat0.925units ofaccountper100
kilogrammes ;whereasaproduction refundof1.510unitsofaccountper100kilo­
grammesofcommonwheatandofI.140unitsofaccountper100kilogrammes of
brokenriceusedforstarchmanufacture ensuresaproperbalancebetweenthe
useoftheseproducts andtheuseofmaize;whereas,however,thelevelofthe
abovementioned refundsshouldbeguaranteed onlyinsofarasthepriceofthe
basicproducts ontheworldmarketissituated belowthethreshold pricefor
eachoftheseproducts ;
1)OJNo117,29.6.1967 ,p.2269/67.
2)OJNoL72,20.3.1975 »P.14.
3)OJNo174,31.7.1967 ,P.1.
4)OJNoL72,20.3.1975 ,P.18.

Whereas onaccount oftheconnection between theproduction prices oftheraw
materials used inthemanufacture ofcereal andpotato starches andofthe
interchangeability ofthese twoproducts ,a "balanced relationship should he
maintained between theprices ofthese products ;whereas therefund granted
should therefore bethesame forboth ofthese products ;whereas ,however ,
therefund paid toproducers ofpotato starch should besuch astoassure
Community potato producers ofaprice allowing them afair income ,while the
market conditions for cereals used instarch manufacture and the common market
organisations governing them are such astoensure that their price isinfact
held atthelevel ofthethreshold price ;whereas steps should therefore be
taken toensure that potato producers ultimately benefit from therefund paid
toproducers ofpotato starch ;
Whereas thelevel oftheproduction refund tobegranted onmaize used bythe
maize industry inthemanufacture ofgroats andmeal forusebythebrewing
industry intheproduction ofbeer ,andonbroken rice used forthe same purpose
should besuch astoachieve abalance between thecost ofsupplying thebrewing
industry with maize starch ,ontheonehand ,andwith maize groats andmeal and
broken rice ,ontheother }whereas this objective will beachieved byfixing the
refund onmaize forthemanufacture ofgroats andmeal atthe sane level asthe
refund onmaize for themanufacture ofstarch and ,also ,byfixing the refund on
1.140
broken rice used forbrewing at/units ofaccount per100kilogrammes ;
Whereas therefund tobegranted ongroats andmeal forthemanufacture ofglucose
bytheprocess known asdirect hydrolysis should befixed atsuch alevel asto
achieve abalance between glucose manufactured bysuch aprocess andglucose
manufactured from starch ;
Whereas ,intheevent ofappreciable andpersistent variations intheworld price
ofmaize ,common wheat andbroken rice ,these refunds should belimited ,solong
asworld market prices remain high ,insuch away astodeter imports atprices
below theworld market level andtoprevent thefinancial burden ofproduction
refunds from becoming excessive ;
Whereas the abovementioned measures should not disturb the markets inthird
countries ;whereas ,therefore ,intheevent ofanappreciable andpersistent
increase inprices onthesaid markets ,provision should bemade forconpensa ^-
tory measures consisting ofthecharging ofalevy onexported products with a
view toreducing theadvantages granted toCommunity manufacturers toanappro­
priate level ;

Whereas under Article 57oftheActofAccession 'infixing the level ofthe
various elements oftheprice andintervention system ,except forintervention
prices |account istobetaken forthenewMember States totheextent necessary
fortheproper functioning ofCommunity rules ,ofthedifference inprices ex­
pressed bythecompensatory amount }whereas ,however ,fortheapplication ofthis
provision ,thecompensatory amount maybereduced inaccordance with Article 7
ofCouncil Regulation (EEC)No229/73^of31January 1973laying downgeneral
rules forthesystem ofcompensatory amounts forcereals andfixing these for
certain products ,aslast amended byRegulation (EEC)No2518/74 andArticle
5ofCouncil Regulation (EEC)No243/73^of31January 1973laying downgeneral
rules forthesystem ofcompensatory amounts forrice andfixing these amounts for
certain products ,aslastamended byRegulation (EEC)No1999/74^of29July1974
Whereas Council Regulation No1132/74^of29April 1974onproduction refunds in
thecereals andrice sectors ,aslast amended byRegulation (EEC)No3113/74
hasfrequently been amended ;whereas ,forreason ofclarity ,itispreferable to
publish theprovisions relating toproduction refunds oncereals andrice ina
newRegulation }
HAS ADOPTED THIS REGULATION :
TITLE I
Production refunds oncereal starch
Article 1
1*Member States shall grant aproduction refund onmaize forthemanufacture
ofstarch of/^.unitofaccount per100kilogrammes lessanyaccession compen­
satory amount applicable *
2.Member States shall grant aproduction refund oncommon wheat forthemanu­
facture ofstarch of /units ofaccount per100kilogrammes ,less anycompen­
satory amount applicable .
1)OJNoL73,27.3.1972 ,p.14. 6)OJNoL128,10.5.1974 ,p.24.
2)OJNoL27,1.2.1973 ,p.25. 7)OJNoL332,12.12.1974 ,P»1»
3)OJNoL270,5.10.1974 ,P-
4)OJNoL29,1.2.1973 ,p.26.
5)OJNoL209,31.7.1974 ,P.5-

-4-
3.MemberStatesshallgrantaproduction refundon"brokenriceforthemanufac­
tureofstarchof1*140unitsofaccountper100kilogrammes lessanyaccession
compensatory amountapplicable .
TITIfiII
Production refundsonpotatostarch
Article 2
MemberStatesshallgrantaproduction refundof1.490unitsofaccountper100
kilogrammes ofpotatostarch,inaccordance withtheprovisions ofArticles 3and
9.
Article 3
1.Thepricetobepaidtotheproduceratthedelivered-to-factoxystageforthe
quantityofpotatoes required tomanufacture 100kilogrammes ofpotatostarchshall
beequaltotheamountoftheproduction refundmentioned inArticle 2,increased
byanamountofnotlessthan15»6o8unitsofaccount.
2.Theproduction refundshallbecaloalated onthebasisofthequantityofpota­
toesdelivered tostarchmanufacturers ,accountbeingtakenofthestarchcontent
ofthepotatoes atthetimeofdelivery.
Itshallbepaidinfulltothestarchmanufacturer ifhefurnishes proofs
-ofthequantities ofpotatoes delivered tohimandtheirstarchcontentatthe
timeofdelivery ;
-ofpaymenttotheproducerofanamountnotlessthanthepricefixedinparagraph
1,accountbeingtakenofthestarchcontentofthepotatoes.
Wherethepricetotheproducerislessthantheminimumreferredtointhesecond
indentofthepreceding subparagraph ,therefundpaidtothestarchmanufacturer
shallbereducedbythedifference inquestion.
TITLEIII
Production refundsonmaizegroatsand
mealandbrokenrice
Article 4
1.MemberStatesshallgrantaproduction refundonmaizeusedbythemaizemdu–

-5-
stryforthemanufacture ofgroatsandmealusedbythebrewingindustryin
theproduction ofbeerequaltotherefundgrantedonthesamedateonmaize
forstarchmanufacture .
2.MemberStatesshallgrantaproduction refundonbrokenriceusedbythe
brewingindustryintheproduction ofbeerofl.140unitsofaccountper100
kilogrammes lessanyaccession compensatory amountapplicable .
Article 5
MemberStatesshallgrantaproduction refundonmaizegroatsandmealforthe
manufactureofglucoseundersubheading17.02BIIoftheCommonCustomsTariff^
bytheprocess knownasdirecthydrolysis .
Theproduction refundper100kilogrammes ofmaizegroatsandmealsousedshallbe
1.13dunitsofaccountlessanyaccession compensatory amountapplicable .
Article 6
MemberStatesshalltakeallnecessary measures toensurethattherefunds men­
tionedinArticles 4and5arelimitedtothequantities ofmaizegroatsand
mealandbrokenriceactuallyusedintheCommunity bythebrewingindustryin
theproduction ofbeerorbytheglucoseindustry.
TITLE IV
Generalprovisions
Article 7
1.Ifthepricesofthebasicproducts mentioned inArticle 1show
appreciable andpersistent variations ontheworldmarketsinrelationto
theirrespective threshold priceslessthe
production refund,theproduction refundsspecifiedinArticleslt2and4
maybealteredbytheCouncilactingonaqualified majority ona
proposal fromtheCommission .
2.Iftheworldmarketpriceofmaize,commonwheatorbrokenriceappreciably
andpersistently exceedsitsrespective thresholdpricelesstheproduction refund,
anexportlevyshallbeintroduced for
l)PursuanttoRegulation No189/66/EEC,theproductsfallingwithintariffsubheading
17.02BIaresubjecttothesamearrangements asthoselaiddownforproducts
fallingwithinsubheading 17.02BII.

-6-
products falling within headings 11.08 A,11.09 ,17.02 BII,17.05 Band23.03
AIoftheCommon Customs Tariff tocompensate forthedifference between prices
ontheworld market andtheamounts referred tointheprevious paragraph relating
tothe "basic products concerned .TheCommission shall fixtheexport levy .
Article 8.
Member States shall inform the Commission not later than four months after the
endofthemarketing year ofthequantity ofproducts forwhich production
refunds have been paid .
Article 9
Detailed rules fortheapplication ofthis Regulation shall beadopted in
accordance with theprocedure laid down inArticle 26ofRegulation No
I20/67/EECandArticle 26ofRegulation No359/^7/EECinparticular asregards :
a)theexport levy referred toinArticle 7(2);
b)thegranting ofadvances onproduction refunds which mayinvolve thegiving
ofsecurity ;
c)thecalculation ,inaccordance with ascale drawn upintenns ofthestarch
oontent oftheproduct ,ofthequantity ofpotatoes required tomanufacture
100kilogrammes ofstarch ;
d)theconditions under which potatoes areaccepted andpaid forandthecondi­
tions under which theproof mentioned inthesecond subparagraph ofArticle
3(2)must befurnished .
Article 10
Regulation (EEC)No1132/74ishereby repealed .
Article 11
This Régulation shall enter into force :
-on1August 1975 »forproducts covered byRegulation No120/67/EEC,
–on1September 1975 »forproducts covered byRegulation No359/67/EEC.
This Regulation shall bebinding initsentirety anddirectly applicable
inall Member States .
Done atBrussels . For the Council
The Président