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Vol. 1984/00 35 
  
 
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Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the opening to the public of the historical archives of the European Econom ic 
Communit y and the European Atom ic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), t his file is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februa r 1983 über die Freigabe der historischen Archive der Europäischen  
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983,  
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003  
(ABI. L 243 v om 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit  
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5  
der genannten Verordnung freigegeben.  
COMMISSION
OF THE
EUROPEAN COMMUNITIES
General SecretariatC O M (84) 92 final
B r u sse ls, 27 february 1984
F O R  OFFICIAL U S E  ONLY
Recommendation for a  
COUNCIL DECISION
authorizing the Commission to open negotiations with Portugal for the  
conclusion of an agreement in the form of an exchange of letters  
on specific financial aid to improve agricultural structures
in Portugal
(submitted to the Council by the Commission)
COM(84) 92 final

I. B A C K G R O U N D
1. In a Communication to the Council dated 12 June 1980 the Commission, in  
response to a Portuguese request, proposed that Portugal's path, towards accession  
should be smoothed by means of various initiatives a-'ri measures similar to fcse  
which would be carried out after accession through the facilities available to  
all Member States. At the time, the Commission drew particular attention to the  
shortcomings of Portugal's regional and agricultural structures, which were  
Liable to pose serious problems once the country became a member - the isolated  
regions, structurally backward farming sector and high level of agricultural  
imports, swelling the trade deficit.
2. On 3 December 1980, pursuant to a Council Decision dated 7 October 1980,  
the Community signed an Agreement with Portugal on pre-accession aid.
The Agreement provided for an overall financial package of 275 million ECU,
150 million ECU in the form of EIB own-resources loans and 125 million ECU in  
grant form. Of the grant aid, 100 million ECU was earmarked for cooperation projects  
or programmes relating to agriculture, small businesses, regional infrastructure  
and vocational training. The money was to ue committed between 1 January 1981  
and the date of Portugal's entry into the Community.1
1C0MC80)280 final.

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3. The Portuguese authorities set : aside 23 million ECU of the 100 million ECU  
grant aid to finance agricultural projects. Projects accounting for the
full amount have already been submitted to the Community; some have been  
approved, others are still in the appraisal pipeline.
4. Pursuant to a Portuguese request, Council Decisions dated 21 June and 
17 October 1983 and a Decision of the EIB's Boar of Governors dated
19 August 1983 accorded Portugal an extension of ire-access ion aid in the  
form of 75 million ECU of EIB loan?, valid from i ;  1983 to 30 June 1984.
11.  SUPPLEMENTARY PRE-ACCESSION ATD FOR PORTUGUESE AGRICULTJRE
5. Portugal has repeatedly empha 1 »,. *.vd the need for coordinated measures  
in the run-up to accession to improve the organization of its agricultural  
markets, step up production standards and rationalize farm structures. It  
has also pointed to the need for institutional and planning reforms.
The shortcomings of Portugal's farm sector make it essential that the
1pre-accession aid operation should be not only continued but expanded  
between now and accession. (  Ana the new-style transition period for
!
1See the Commission's interim opinion of 8 February 1983 (C0M(83)74 final,  
pc^e 6).

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the agricultural sector has been devised precisely to cope with the need  
to bring the country's agricultural structures into line with the Community's  
within five years of accession. In practice the two-stage transition period  
which is envisaged depends on preparations getting under way in Portugal  
as soon as possible, well before the accession date.
I
6. In a Communication to the Council dated 22 July 1983 on guidelines and
1proposals concerning the transition period for Portuguese agriculture,  
the Commission proposed that a further 50 million ECU of pre-accession aid  
be accorded, to be used solely for the continuation of existing operations  
or the inauguration of new agricultural projects.
7. At the 16th session of the Conference at ministerial level, which took
place in Brussels on 23 January this year, the Council endorsed the
Commission's broad approach to pre-accession aid in the following statement
2to the Portuguese side:
"The Community has already pointed out in its previous statements on  
agriculture that:
it is encouraging the· Pprtuguese authorities in the steps they are taking,  
in view of the discrepancies between the Portuguese agricultural system  
and the Community system, which involve making the maximum number of  
adjustments to their system prior to accession, in order to facilitate  
the integration of Portuguese agriculture into the Community system and  
hence to derive optimum benefit as from accession from the adoption and  
implementation of the acquis communautaire as regards the common  
agricultural policy, particularly in respect of structures;
1C0M(83)310 final.2C0NF.-P/6/84, 26 January 1984.

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- it would accordingly be advisable to intensify these efforts both during  
the period still to elapse until accession, and after accession.
The Community has, particularly by means of the system of pre-accession aid,  
already made a contribution to the work begun to this end in Portugal. Given  
the magnitude of the objectives to be achieved in the agricultural sphere  
with regard to structures, it considers however, that the efforts which have  
been undertaken in this respect need to be expanded.
The Community is accordingly prepared to continue pre-accession aid to  
Portugal for agriculture on the basis of a programme of priority structural  
intervention which could be implemented during the period prior to accession,  
details to be worked out subsequently by mutual agreement.
The Community reserves the right to decide on the amount and financial  
conditions for granting this new pre-accession aid once the Commission  
proposals have been examined. It would however like to draw the attention  
of the Portuguese delegation straight away to the fact that, in implementing  
this aid, particular attention ought to be paid to certain problems peculiar  
to Portugal which have been pinpointed in the accession negotiations and  
to the need for due account to be taken, when drawing up the aforementioned  
programme, of the aims of cohesion of an enlarged Community."
III. PROPOSED USE OF SUPPLEMENTARY AID FOR AGRICULTURE
8. The further 50 million ECU of pre-accession aid proposed by the Commission  
is designed as a bridge between existing operations and what the Community  
is going to have to do for Portugal as from accession to provide its  
agriculture with the infrastructure and structural organisation it needs to  
facilitate its integration into the common agricultural policy.

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While it is important, therefore, that current operations should not be  
broken off, it is just as vital that they should be coordinated to ensure  
that their objectives:
(a) are compatible with the basic principles of the common agricultural  
policy, with particular reference to the latest guidelines laid down  
for it, while at the same time taking into account the special situation  
of Portugal's farm sector;
(b) follow on from the goals perviously set for pre-accession aid and those
defined in connection with the Commission's proposals for the specific
1programme to be undertaken in Portugal. The need for continuity will  
call for a financial contribution from the Community in keeping with  
the scale of operations required as accession approaches.
9. In the Commission's view, if projects are to meet the criteria of compatibility  
and continuity indicated above they should be set within the following broad,  
framework of operations.
9.1. Agricultural advisory services
In its Communication to the Council dated 12 October 1983 on further guidelines
2and proposals concerning the development of agricultural structures in Portugal,  
the Commission took the view that part of the pre-accession aid should be  
devoted to the development of advisory services before the accession date,  
since, as it pointed out, it is advisory work which must pave the way for  
the success of the specific programme, and is thus a precondition for it.
1C0M(83)357 final.2C0MC83)587 final.

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9.2. Infrastructure measures
Projects under this heading will include the sort of schemes which, once  
Portugal is a member, would be covered by Regulation (EEC) No 355/77 on  
common measures to improve the conditions under which agricultural  
products are processed and marketed.
More specifically, they will involve:
- the creation of marketing facilities for beef and veal, sheepmeat,  
cereals and fruit and vegetables;
- provision of more slaughterhouses (for beef and veal, sheepmeat and  
poultry);
- the development of storage capacity for cereals, wine, olive oil and
seeds, and cold stores for meat; ’
- the setting up of grading and packing centres for eggs and seeds, and  
grading stations for fruit and vegetables.
9.3. Measures to develop the “cooperative spirit" among farmers and  
staff involved in the marketing of agricultural produce
What is envisaged is something more than simply a system of aids to  
encourage the formation of producer groups within the meaning of the  
Community rules; the aim is to encourage cooperation and the pooling  
of resources in a country where holdings are small, crops fragmented,  
farming enterprises not sufficiently complementary, and marketing  
facilities poor.
In some sectors a cooperative movement is beginning to get off the ground,  
but it still falls well short of what is desirable simply to enable  
Portugal to compete fairly with procedures in the present member States.

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Consequently, measures should not be confined to sectors in which  
producer groups are important (olive oil) if not essential (fruit and  
vegetables), but should extend to all branches of agricultural activity  
which either have a long-term survival problem (cereals, oilseeds, milk,  
livestock) or could be developed in line with the objectives of the  
present common agricultural policy (protein crops and certain fruits and  
vegetables).
9.4. Research
In its widest sense this covers not only scientific research in the  
laboratory but also practical research in the field, in the form of  
pilot projects and field tests. The main need here is for projects  
concerning livestock farming (including zootechnics), seeds (fodder and  
other crops), cultivation methods (for cereals, legumes and protein crops)  
and the raising of standards e.g. in milk and milk products.
9.5. Veterinary measures
There is an urgent need in Portugal to put in hand without delay a  
campaign to eradicate bovine tuberculosis and brucellosis, along the  
lines of that undertaken in the present Community.
More also needs to be done to control African Swine Fever. The Community  
should step up its contribution to the existing operation, as Portugal  
currently lacks the money to implement measures on the necessary scale.
1Council Decision No 80/877/EEC on financial aid from the Community for
the eradication of African Swine Fever in Portugal.

-  8 -
Finally, a special effort needs to be made to build up veterinary  
inspection services, which are currently hampered not by any staff  
shortage but simply by the lack of facilities.
9.6. Statistical services
In this field, work needs to be undertaken to follow up the Farm Accountancy  
Data Network (FADN) and agricultural market information service (SIMA)  
projects scheduled under the first instalment of pre-accession aid. As  
those are horizontal projects, the next lot of measures should address the  
more sectoral aspects of statistical services, with particular reference  
to sectors where price monitoring is crucial to the proper functioning of  
the market organization (e.g. pigmeat, fruit and vegetables).
9.7. Training of administrative staff
If the common organization of the markets is to function properly, a sound  
administrative infrastructure is needed. In Portugal this need is  
particularly pressing in sectors whére it is proposed to apply the  
acquis communautaire as from accession.
1As the Commission pointed out in a communication dated 22 July 1983,  
while the lack of proper administrative infrastructure is not an  
absolute bar to the operation of market mechanisms, it could so upset  
the functioning of the common market organizations as to harm the interests  
of Portuguese producers and users or consumers alike.
1C OM C  83)310 final, 22 July 1983.

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However, while priority should go to the sectors scheduled for "conventional"  
transition arrangements, the problem is to a great extent general, and  
specific measures in this field are bound also to ease the gradual  
introduction of Community rules in the sectors where a phased transition  
is planned.
9.8. Priority measures identified during the accession negotiations
In its statement at the ministerial session of the negotiating conference  
on 23 January the Community drew the Portuguese delegation's attention  
to the fact that in implementing the supplementary pre-accession aid  
particular attention should be given to a number of specific problems in  
Portugal which had been identified during the negotiations, and to the  
need to take proper account, in formulating a programme of urgent  
structural measures, of the objectives of furthering the cohesion of  
the enlarged Community.
We must therefore provide for priority measures to remedy agricultural  
structural defects linked to the specific problems referred to.
IV. RECOMMENDATION FOR A DECISION
The Commission accordingly confirms the proposal set out in its
2Communication of 22 July 1983 and invites the Council to agree to a  
special 50 million ECU package of grant aid designed to supplement the  
existing pre-accession aid in bringing about structural improvements in  
Portugal's agriculture. It is therefore sending the Council a  
recommendation (Annex I) to secure the negotiating directives it needs to
1CONF-P/6/84, 26 January 1984.2C0M(83)310 final, 22 July 1983, p. 22, § 5.3.3.

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conclude an agreement with Portugal to provide it with specific financial  
aid to improve agricultural structures. The agreement would be in the  
form of an exchange of letters, a draft of which is at Annex II.

Recommendation for a  
COUNCIL DECISION
authorizing the Commission to open negotiations with
Portugal for the conclusion of an agreement in the form of an  
exchange of letters on specific financial aid to improve  
agricultural structures in PortugalAnnex I
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic Community,
Having regard to the Recommendation from the Commission,
Whereas the pre-accession aid currently available as the Community's  
contribution to the financing of specific measures to help Portugal  
adapt its agricultural structures in view of its accession to the  
European Communities will be committed in full in 1984;
Whereas the Community has stated that it is
prepared to continue pre-accession aid to Portugal for agriculture on the  
basis of a programme of priority structural intervention which could be  
implemented during the period prior to accession, details to be worked out  
subsequently by mutual agreement,
HAS DECIDED AS FOLLOWS:
Sole article
The Commission is hereby authorized to open negotiations for the conclusion  
of an agreement in the form of an exchange of letters concerning the  
implementation of specific financial aid to improve agricultural structures  
in Portugal.

-  2 -
The Commission shall conduct the negotiations in consultation with  
representatives of the Member States and in accordance with the  
directives annexed hereto.
Done at For the Counci L
The President

ANNEX
1. The Community shall exceptionally contribute on the terms specified  
hereafter to the financing of specific operations undertaken by the  
Portuguese Government in order to improve agricultural structures and thus  
facilitate the application of Community rules to Portugal's agriculture.
2. For the purposes specified in paragraph 1, the sum of 50 million ECU  
may be committed in the form of grants from the Community budget to  
finance structural improvement projects in Portugal's agricultural sector.  
No new financial commitment of any portion of this sum may be made after  
the date of accession.
3. The 50 million ECU provided for in paragraph 2 shall be used to  
finance or part-finance projects and programmes involving measures in  
fields including:
- advisory services
- infrastructure
- development of the cooperative spirit among farmers and staff  
involved in the marketing of agricultural produce
- research
- animal health and veterinary services
- statistical services
- training of administrative personnel
- specific problems identified during negotiations.
4. In the selection of technical assistance measures particular  
consideration shall be given to projects likely to facilitate Portugal's  
adoption of the acquis communautaire.
5. The Community's financial contribution to the projects or programmes  
defined in paragraph 3 may not exceed 70% of their total cost. However, it  
may cover the full cost of technical assistance operations.

- 2 -
6. Community aid shall be used to cover expenditure necessarily incurred  
in carrying out approved projects, programmes (including study,  
engineering consultancy and technical assistance costs) or operations.
It may not be used to cover administrative or maintenance costs.
7. Community aid for the implementation of capital projects or cooperation  
projects or programmes may, with Portugal's consent, take the form of  
cofinancing.
8. The following are eligible for Community aid: (a) the Portuguese State;
(b) with the approval of the Portuguese State, public or private  
undertakings having their registered place of business or being established  
in Portugal; (c) with the approval of the Portuguese State and as part of  
cooperation projects or programmes, or technical assistance operations,  
private individuals.
9. The Portuguese State or, with its approval, other aid recipients as  
specified in paragraph 8, shall submit their applications for aid to the  
Commission of the European Communities.
Examination of the eligibility of projects, programmes or operations shall  
be carried out by the Community with a view to preparing Portugal for  
accession, having regard to the mutual interests of the two parties.
The Community shall appraise applications for financing in collaboration  
with the Portuguese State and the recipients and shall inform them of the  
decision taken on such applications.
10. The implementation, management and maintenance of schemes financed  
under this agreement shall be the responsibility of the Portuguese State or  
other recipients, as specified in paragraph 8.
The Community shall ensure that the aid it grants is used for the  
purposes agreed and to the best economic advantage.

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11. Participation in tendering procedures and other procedures for the award  
of contracts eligible for financing shall be open on equal terms to all  
natural and legal persons of Portugal or of a Member State of the Community.
12. The fiscal and customs arrangements applied by Portugal in respect of  
contracts awarded for the implementation of projects, programmes or operations  
financed under this Agreement shall be at Least as favourable as those  
applied in respect of other international organizations.
13. The Portuguese authorities shall give all necessary aid and assistance  
to Community representatives for the purposes of implementing this  
Agreement.
14. Aid implementation may be reviewed by the Joint Committee referred to  
in Article 32 of the Agreement between the European Economic Community and  
the Portuguese Republic signed on 22 July 1972.
15. This Agreement shall enter into force on the first day of the month  
following the mutual notification by the Parties of the completion of  
the procedures necessary to that end.

A N N E X  II
DRAFT
AGREEMENT
in the form of an exchange of letters between  
the EEC and the Portuguese Republic concerning  
the implementation of specific financial aid  
to improve agricultural structures in Portugal
Letter No 1
Si r,
On...................  the European Economic Community decided
to gr
ant the Portuguese Republic financial aid in order to undertake,  
with a view to Portugal's accession to the European Communities,  
measures of common interest aimed at improving agricultural  
structures and thus facilitating the application of the common  
agricultural policy in Portugal.
At the negotiations held in Brussels on ..........  the delegations
of
 the Community and of the Portuguese Republic agreed on the terms  
and detailed arrangements for implementing this aid, which are set  
out in the annex to this letter.
I should be obliged if you would acknowledge receipt of this letter  
and its annexes and confirm that your Government is in agreement  
with their contents.
Please accept, Sir, the assurance of my highest consideration.
On behalf of the Council of the  
European Communities

Letter No 2
Si r,
I have the honour to acknowledge receipt of your letter of today's  
date, accompanied by two annexes, which reads as follows:
"On ............. the European Economic Community decided to
gra
nt the Portuguese Republic financial aid in order to undertake,  
with a view to Portugal's accession to the European Communities,  
measures of common interest aimed at improving agricultural  
structures and thus facilitating the application of the common  
agricultural policy in Portugal.
At the negotiations held in Brussels on .............  the
de
legations of the Community and of the Portuguese Republic agreed  
on the terms and detailed arrangements for implementing this aid,  
which are set out in the annex to this letter.
I should be obliged if you would acknowledge receipt of this  
tetter and its annexes and confirm that your Government is in  
agreement with their contents."
I have the honour to confirm that my Government is in agreement  
with the contents of your letter and of its annexes.
Please accept, Sir, the assurance of my highest consideration.
For the Government of  
the Portuguese Republic

FINANCIAL MEMORANDUM
1. Number of relevant budget heading
Entry under Article 960 (financial Cooperation with Portugal):  
heading No 9602 - Portugal: specific aid to improve agricultural
structures
2. Legal basis
Article 235 of the EEC Treaty
3. Proposed Classification  
Compulsory expenditure
4. Description and justification of operation
Financing of projects and programmes of common interest in the  
agricultural sector. Financing of technical assistance  
operations.
5. Nature of expenditure and method of calculation
5.1. Grant
5.2. Amount set as a lump sum
6. Financial implications for operating appropriations
6.1. Timetable for commitment and payment appropriations:
Commitment appropriation Payment appropriation
1985
198650 million ECU 25 mi llion ECU  
25 million ECU
6.2.70% (100% for technical assistance)
7, Comments
None
8. Financial implications for administrative appropriations
None