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DOCUMENTS "COM"
COM(74)1627
Vol.1974/0261

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(74)1627final
Brussels.10October1974
Proposalfora
REGULATION(EEC)OPTHECOUNCIL
■>mam.
onspecialmeasuresforsoya"beansforthe
1974/75marketingyear
(submittedtotheCouncilbytheCommission)
CQM(74)1627final

EXPLANATORY OTIORAOJM
CouncilRegulation(EEC)NOI9OO/74of15July1974layingflownspecialmeasures
forsoyabeansmakesprovisionfortheCounciltoadoptaifteriafordetermining
theaverageworldmarketpriceofsoyabeans,aswellasgeneralrulesforgran­
tingthesubsidyandforoheckingeligibilityforthesubsidy.
ThisdraftRegulationlaysdownprovisionsconcerningsuohcriteriaansgeneral
rules.Inviewoftheapproachingstartofthe1974/75marketingyearandofthe
lackofexperiencegained,itisproposedthatprovisionsbelaiddownforthe
1974/75marketingyearonly.
ThedraftregulationalsoprovidesthatMemberStatesaretoabolishby31Octo­
ber1975a-'-thelatestthenationalsubsidieswhich,in1973beforetheintroduc­
tionofiheOommaaitysystem,theyhadundertaken,tograntincertaincircum­
stances+0r07abeanproducersduringthe1974/75marketingyear®Thereisapos­
sibility ;,-jiv^nthespecialsituationontheworldsoyabeanmarket,thatthe
Commune 3yfor1974/75Willbelowerthannationalsubsidies.Inthese
oirouffi£.v^tL.if3y theabolitionofnationalsubsidieswoulddefinitelybeprejudicial
toproddue .'aofthisnewcrop,

Proposal fora
REGULATION (EEC)OFTHECOUNCIL
onspecial measures forsoya "beans forthe1974/75marketing year
THECOUNCIL OFTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ,
1Having regard toCouncil Regulation No136/66/EEC of22September 1966 on
theestablishment ofacommon organization ofthemarket inoil3 andfats ,
aslast amended byRegulation (EEC)No1707/73 ,andinparticular Article
36thereof ;
Having regard toCouncil Regulation (ESC)NO1900/74^of15July1974laying
down special measures forsoya beans ,andinparticular Article 2(3)thereof ;
Having regard totheproposal from theCommission *
Whereas pursuant toArticle 2ofRegulation (EEC)No1900/74,criteria for
determining theaverage world market price ofsoya ,together with -general rules ^
forgranting thesubsidy andfor thecontrol ofbeans harvested within the
Community :
Whereas thesaid average world market price must bedetermined ohthebasis of
themost favourable purchasing terms available onthat market ;
Whereas ,thefigures tobetaken forthis purpose should bethose recorded over
themarketing period forCommunity beans inrespect ofoffers ontheworld market
andprices quoted onthemajor international exchanges which areimportant ;
whereas ,however ,offers notconsidered representative ofthetrue trend ofthe
market should beignored ?
Whereas under Article 2(l)ofRegulation (EEC)No1900/74 "t^eaverage price must
berecorded foraCommunity frontier crossing point ;whereas infixing this
point account should betaken oftheextent towhich itisrepresentative for
imports ofsoya beans ;whereas thepoint selected should accordingly bethe
port ofRotterdam ;whereas offers andquotations must beadjusted ifthey
relate toadifferent frontier crossing point ;
'1)OJNo172,30.9.1966 ,p.3025/66
'?}OJNoL175,29.6.1973 ,p.5
k3)OJNoL201 ,23.7.1974 ,P.5

-2-
Whereas provision should also "bemade forsuch adjustment intheevent ofany
variation from thepresentation andquality specified forthepurpose offixing
theguide price ;
Whereas theMember States should berequired tosetupthecontrol arrangements
necessary toensure theproper functioning ofthesubsidy system *
Whereas under Article 2(2)oftheaforementioned Regulation thesubsidy isto
begranted inrespect ofoutput determined byapplying atarget yield tothe
areas sown andharvested :whereas ,inorder toensure theproper application
ofthesubsidy system ,thetarget yield should bedetermined byreference to
yields recorded intheprincipal production areas ;
Whereas theperiod ofvalidity oftheforegoing rules should belimited tothat
necessary toenable their effectiveness tobeassessed ;
Whereas last year certain Member States decided ,while awaiting Community rules
onthesubject ,togrant subsidies topromote theproduction ofsoya beans ;
whereas iftheCommunity subsidy were tobefixed atalevel lower than that
fornational subsidies theabolition ofthose subsidies would beprejudicial
toproducers whohadembarked upon cultivation ofthis crop ;whereas ,inorder
avoid this ,Member States should beauthorized ,subject tocertain conditions ,
tomaintain their national subsidies forthe1974/75marketing year ;
HAS ADOPTED THIS REGULATION :

-3-
Article 1
1.Theaverage world market price forsoya "beans asreferred toinArticle 2
ofRegulation (EEC)No1900/74shall bedetermined onor "before 15January
1975 .
2.Forthepurpose ofdetermining such average world market price ,account
shall "betaken ofthefigures recorded over aperiod most representative
ofthetrade in "beans originating intheCommunity inrespect ofoffers
ontheworld market andofprices quoted onthe maj-or international
exchanges .
3.Theaverage world market price shall "bedetermined onthe "basis ofthe
average ofthemost favourable offers andquotations reoorded during the
period referred toabove ,butexcluding offers andquotations which cannot
be .r^g-..irded aarepresentative ofthetrue trend ofthemarket .
Article 2
Theaverage vorld market price shall bedetermined forloose beans ofastandard
quality delivered atRotterdam .
Thenecessary adjustments shall bemade where offers andquotations donot
satisfy these requirements .
Article 3
Member States shall setupacontrol system whereby ,inthecase o±each eoya
bean grower towhom aidisgranted under Article 2(l)ofRegulation (EEC)
No1900/74,itmaybeverified that thecrop area inrespect ofwhich asub­
sidy hasbeen applied forcorresponds tothearea onwhich soya hasactually
been sown andharvested .
Article 4
1.There shall bedetermined 011orbefore 15January 1975 astandard Community
target yield forsoya beans .
2.Thetarget yield shall bedetermined forsoya beans ofastandard quality ,
3.Thetarget yield shall bedetermined byreference primarily totheyields
perhectare ascertained byrandom sampling inthemain production areas
oftheCommunity .

-4~
Article5
1.Until31October1975andinrespectofsoya"beansharvestedbefore
1January1975tMemberStatesmaycontinuetoapplytheirrespective
nationalproductionsubsidyarrangements .
2.Theamountofthesubsidyundersucharrangements maynot,however,
exceedthedifferencebetweentheamountthereofapplicable ,on1November
1974andtheamountofthesubsidyunder .Article2ofRegulation(EEC)
No1900/74,
Article6
mm-m11m■*■tf.il
ThisRegulationshallenterintoforceon1November1974.
Itshallapplyuntil31October197-5.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicable
inallMemberStates.
Done'"atBrussels, FortheCouncil,
ThePresident