ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(79)596
Vol.1979/0204

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(79)596 final
Brussels,6November 1979
EIGHTH FINANCIAL REPORT
onthe
EUROPEAN AGRICULTURAL GUIDANCE ANDGUARANTEE FUND
YEAR1978
(presented bytheCommission totheCouncil)
GUARANTEE SECTION
C0M(79)596final

INTRODUCTORY NOTE
Artic'e 10ofRegulation (EEC)No729/70onthefinancing ofthecommon
agricultural policyprovides that"before 1Julyofeachyear,the
Commission shallsubmittotheCouncil andtotheEuropean Parliament a
financial re->ortontheadministration oftheFundduringthepreceding
financial yearand,inparticular ,onthestateofitsresources andthe
natureofitsexpenditure andtheconditions underwhichCommunity financ­
inghasbeeneffected".
TheCommission hasaccordingly submitted sevenannualreportssince1971,
uhenthodefinitive financing systemcameintoeffect.
Thisreportcoverstheactivities oftheGuarantee SectionofEAGGFfor
the1978financial year.
Th?Guarantee Sectionfinances expenditure resulting fromthecommon
policyonagricultural markets andprices.UnderArticles 2and3of
Renulation(EEC)No729/70thiscomprises refunds onexportstonon-member
countries tocoverthedifference between Community pricesandworld
nricos,andvariousintervention measures designed tostabilize agricul­
turalmarkets (storage,withdrawal fromthemarket,pricecompensation ,
guidance premiums).
N.B.ThisdraftoftheReportwascompleted on2June1979

-ι-
SUMMARY OFTHEEIGHTH FINANCIAL REPORT
-AGGFGuarantee section
Thisreportcoverstheactivities andfinancial operations oftheEAGGF
Guarantee SectionandtheCommunity financing offoodaid.
TitleI;Developments intheCommunity financing ofagricultural markets
andprices
1.Certainchanges madetomarketregulations hadfinancial implications
fortheGuarantee Section.Theprincipal changesweretheintroduction ,
inconnection withtheco-responsibility levy,ofaschemeforexpanding
themarketformilkproducts,thereinforcement ofsupportfor
Mediterranean products,aspecialfeatureofwhichwasamajorreorgan­
izationoftheoliveoilsector,andtheintroduction ofaidforthe
processing ofcertainfruitsandvegetables .
2.Therulesgoverning theEAGGFGuarantee Sectionhavealsoundergone two
changes.Thearrangements forfinancing publicintervention ,inpar­
ticularthemethodusedfortheevaluation ofproducts instorage on31
December,havebeenamendedwithaviewtotherealvalueofthosepro­
ductsbeingreflected moreaccurately intheaccounts .Secondly,the
procedures governing thefinancial relations betweentheEAGGFGuarantee
Sectionandthepayingagencies responsible forpreparing themonthly
declarations byMemberStateshavebeenrevisedinthelightofexperi­
ence.

-II-
3.Theprovisional figure fortotal expenditure is8672.7 mEUA,ofwhich
40.8% represents export refunds and59.2% interventions ,including mone­
tary compensatory amounts .Expenditure onthemilk sector continued to
increase substantially in1978 ,totalling 4015mEUAor46.3% ofthe
Guarantee Section 'stotal .There was agrowth inexpenditure onsome
other sectors (cereals ,sugar ,beef andveal ,oils andfats );onthe
other hand ,expenditure onseveral sectors declined (fruit andvegetables ,
wine ,monetary andaccession compensatory amounts ).
Title II;Cash position andfinancial administration
4.Inaddition tothetwelve monthly advances ,theCommission decided to
grant seven special advances ,thereby making atotal of8700.6 mEUA
available totheMember States .Overall ,thefunds available tothe
Member States were less than in1977 ,which denotes animprovement in
management ofthe cash position .
5.Additional appropriations were notrequired in1978 .Theprovisional
figure fortotal expenditure of8672.7 mEUArepresents almost total
utilization oftheavailable appropriations ,i.e. 8703.25 mEUA .
This expenditure includes forthefirst time theoptional depreciation
by306.2 mEUA,ofthevalue ofproducts stored inlarge quantity .
6.Ashappens every year ,some transfers ofappropriations were needed ;
themain effect ofthese was toincrease appropriations formilk pro­
ducts ,beef andveal andprocessed agricultural products andtomake
good thedifferences intheaccounts between expenditure expressed in
agricultural units ofaccount andEuropean units ofaccount ,which in
1978 were entered together inone heading .
Title III ;Verifications and irregularities
7.The Commission undertook systematic verifications with aview tothe
clearance oftheaccounts forearlier years .Italso undertook vari­
ousspecial inquiries andselective checks aimed atensuring that the
provisions ofthecommon agricultural policy were being correctly
implemented inparticular cases .

-III-
Thelatterspecialoperations coveredeightdifferent subjects andcon­
cernedthesupportmechanisms ofsevencommonmarketorganizations .
Lastly,thetermsofreferences oftheSpecialCommittee ofInquiry
wereextended;in1978itturneditsattention tothecerealssector,
onwhichitsworkwillbecompleted in1979.
8.Effortstocombatirregularities ,e.g.byimproving thesystemof
regularnotification ofcasesdetected intheMemberStates,continued .
In1978117irregularities weredetected bynationalauthorities and
reported totheCommission .Theseirregularities involved atotalof
about3mEUA,ofwhichalmost 1mEUAhasbeenrecovered .Thenumber
ofcasesdetected andaboveallthefinancial implications ,wereless
thaninprevious years.Mostcasesconcerncereals,beefandvealand
milkproducts andveryofteninvolvemonetary compensatory amounts
(1.8mEUA).
TitleIV;Auditandclearance ,andclosureofaccounts
9.Becauseoftheconsiderable variety,volumeandcomplexity ofthe
expenditure financed bytheGuarantee Section,andtheshortage of
available staff,thereisstillaveryconsiderable backloginthe
workofpreparing accounts ofprevious yearsforaclearance decision
bytheCommission ;attheendof1978auditandclearance wasfour
yearsbehindschedule .TheCommission isinvarious waysendeavouring
toremedythissituation .
10.1978 wasinthisrespect ayearoftransition ,markedbythecompletion
ofworkontheyears1967-70,theverification oftheaccounts forthe
firstfinancial year(1973)oftheenlarged Community,andthestartof
worksimultaneously onthe1974and1975accounts .Inaddition,the
firstlegalproceedings between anumberofMemberStatesandthe
Commission werecompleted atthebeginning of1979,establishing pre­
cedentswhichwillfacilitate subsequent Commission decisions onthe
clearance ofaccounts .TheCourtofJustice onthewholefoundin
favouroftheCommission ,bothonquestions ofprinciple andinsix
casesoutofthesevenwhichwereindispute.

-IV-
Title V:Financing ofCommunity foodaidforproducts subjecttocommon
marketorganization
11.PendingCouncilapproval oftheCommission 'sproposal tobringto­
gethertheexpenditure onrefundsandtheotherexpenditure relating
tofoodaid,thesetwoitemsremainseparate .Thispartofthe
reportthuscoversallexpenditure onfoodaid,exceptthaton
refunds.
12.Foodaidisfinanced inaccordance withrulessimilartothosefor
theGuarantee Section.TheCommission ,forthispurpose,made
monthlyadvancestotalling 250.3mEUA,23.7%morethanin1977.
Ofthisamount226.8mEUAwerepaidforfoodaidprogrammes relat­
ingtocereals (111.2mEUA),milkproducts (114mEUA)andsugar
(1.6mEUA).Inaddition,9.2mEUAwaspaiddirectly tovarious
bodiesresponsible forfoodaidoperations .
Thedevelopment offoodaidprogrammes sloweduptheworkofverify­
ing1975expenditure .Theauditandclearance ofaccounts thuscon­
tinuestolagbehind.

-ν-
CONTENTS
Page
TITLE I:DEVELOPMENTS INTHE COMMUNITY FINANCING OFAGRICULTURAL
MARKETS AND PRICES
i
1^Agricultural prices andadjustments tomarket mechanisms
jhaving financial implications 1
i1.1 .Agricultural prices ,related measures ,andother
measures having financial effect beginning inthe 1978
financial year 1
.1.2 .Alterations incertain sectors having financial effect
beginning inthe1979 financial year 7
2fChanges inthe rules governing the EAGGF Guarantee Section 9
I2.1 .Financing ofintervention 9
|2.2 .Operation oftheadvances system 11
i2.3 .Standard amounts 12
2.4 .Unit ofaccount used 12
3*Review ofthedevelopment ofexpenditure in1978 13
I3.1 .General 13
3.2 .Appropriations andexpenditure 15
I3.3 .Comparison between initial 1978 appropriations and
disbursements 17
1
!3.A.Breakdown ofexpenditure bytype 22
|3.5.Corrections tobreakdown ofexpenditure byMember State 24
■3.6 .Agricultural levies 25
3.7 .Total cost ofGuarantee Section asapercentage ofGDP 25
TITLE II:CASH POSITION AND FINANCIAL ADMINISTRATION
4.Thecash position 27
4.1 .Advances toMember States 28
!4.2 .Funds available intheMember States during the
financial year 28
i4.3 .Percentage utilization ofthefunds available 31
5.Financial administration 31
5.1 .Summary ofavailable appropriations 31
5.2 .Transfers ofappropriations 31
5.3 .Expenditure 33
5.4 .Carry-overs 36
5.5.Summary ofusemade ofappropriations 36

-VI-
TITLEIII;VERIFICATIONS ANDIRREGULARITIES
6.Verifications
6.1.Characteristics
6.2.Inspection visits
6.3.Inquiries andvisits
6.A.Selective checks
7.Irregularities ,Guarantee Section
7.1.Implementation ofCouncilRegulation (EEC)No283/72
7.2.Thecasesofirregularity
7.3.TheSpecial Committee ofInquiry
TITLEIV:AUDIT ANDCLEARANCE -ANDCLOSURE OFACCOUNTS
8.
8.1.Characteristics
8.2.Periodspriorto1January 1971
8.3.1971and1972accounts
8.4.1973accounts
8.5.1974and1975accounts
8.6.Accounts forsubsequent financial years
TITLE V:FINANCING OFFOODAID
9.
9.1.Characteristics ofCommunity foodaid
9.2.Thecashposition
9.3.Administration ofappropriations andpayments
9.4.Amountstoberecovered fromrecipient countries
9.5.Closure oftheaccounts37
37
39
40
43
45
45
49
53
54
54
55
59
59
59
62
64
66
68
68

-VII -
LIST OFTABLES INTHE TEXT
Page
GUARANTEE SECTION
1.Revenue andexpenditure relating totheco-responsibility levy 4
2.Comparison between the1978 Budget appropriations and
expenditure 14
3.Additional expenditure under Article 8ofRegulation (EEC)
No1883 /78 16
4.MCA levels applied intrade , 22
5.Expenditure corrected pursuant toArticle 2aofRegulation
(EEC )No974/71 24
6.Agricultural levies 25
7.Funds available toandexpenditure byMember States in1978 29
8.Percentage useofCommunity funds in1978 30
9.Transfers ofappropriations 32
10.Breakdown of1978 expenditure byMember State andtype of
financing 34
11.Cases ofirregularity andamounts recovered (1971 to1978 )
+11a 51-52
12.Dates ofdispatch ofstatements forthepurpose ofaudit and
clearance of1977 accounts 60
FOOD AID
■13.Breakdown andutilization ofmonthly advances in1978 64
14.Appropriations available in1978 66
15.Direct payments 67

TITLEI
DEVELOPMENTS INTHECOMMUNITY FINANCING OFAGRICULTURAL MARKETS ANDPRICES
1.Agricultural pricesandadjustments tomarketmechanisms havingfinancial
implications
Expenditure oftheguarantee section hasbeeninfluenced bychangesinagri­
cultural pricesforthe1978/79marketing year,aswellasbyvariousadjust­
mentstothecommonorganizations ofmarkets.Theselatterhavebeenintro­
ducedbothinthecontextofmeasures adoptedatthetimeofthepricereview,
andduringthe1978financial year,andhavehadadirectinfluence onthead­
ministration offinances bytheEAGGFGuarantee Sectionnotonlyin1978,but
alsofrom1979on.
1.1.Agricultural prices,related measures andothermeasures havingfinancial
effectbeginning inthe1978financial year
1.1.1.Agricultural prices
On12MaytheCouncil adopted aseriesofdecisions underacomplexoverall
agreement comprising 3elements :thefixingoftheagricultural pricesfor
the1978/79marketing year,together withrelated measures;thefirststeps
ofanewpolicytohelptheless-developed regionsoftheCommunity
(Mediterranean policy);andagri-monetary measures .
Theaverageincrease incommonpriceswasabout2.1%,veryclosetothe
Commission 'sproposal of27..Therelatedmeasures mainlyaffecttheolive
oil,wineandfruitandvegetable sectors.
Intheagri-monetary fieldtheadjustment oftherepresentative ratepermit­
ted,asin1977,somedismantling ofmonetary compensatory amounts (MCAs)
sincetheywerereducedforFrance,ItalyandIreland.TheCommission 's
proposal of26October 1977ontheautomatic elimination ofexisting MCAs
1overaperiodofsevenyearswasnotadopted bytheCouncil .
1TheCounciladopted amorepragmatic position,inconnection withthe
establishment oftheEuropean Monetary Systemandstressed theneedtophase
outMCAsgradually .

-2-
Thefinancial impactofthesepriceadjustments andtherelatedmarket
organization measuresresulting fromthedecisions adopted onEAGGF
Guarantee expenditure amountstoabout210mEUAforthe1978financial
year.Thiscostderivesnotsomuchfromthepriceriseasfromthe
adoption of,therelated measures inthemilkproducts andprocessed fruit
andvegetables sectors (Mediterranean policy).Thankstosomesavings
attributable totheeconomic andmonetarysituation,itwasnotnecessary
toresorttoasupplementary budget.
1.1.2.Alterations incertainsectorswithafinancial effectbeginning inthe
1978financial year
A.Milkanddairyproducts sector
TheCommunity 'smainconcern hasbeentoimplement theprogramme forthe
progressive achievement ofbalance onthemilkmarketwithaviewtomaking
themaximum impactonthesurpluses ofskimmed-milk powderandbutter.
Intervention stocksofthesetwoproducts wereabout988000and142000
tonnesrespectively atthe1stJanuary 1978.Bytheendof1978thestocks
were722000tonnes and258000tonnes.
a)Co-responsibi litylevyandrelated measures
Oneofthemajorfactorsinthissectorin1978wastheimplementation of
theco-responsibility levy-atthereducedrateof0.5%oftheguideprice
1forthe1978/79marketing year-introduced byRegulation (EEC)No1079/77,
andtheintroduction orreinforcement ofmeasures aimedatexpanding the
market(seealso7thFinancial Report,point3.2.A).
Suchmeasures areadoptedbytheCommission inaccordance withthe"Management
Committee "procedure afterithasconsulted theinterested sectorsrepresented
ontheAdvisory Committee andtheCo-responsibility Group.Theprogramme
agreedonincludes thefollowing measures :
0JNoL131of19May1977p6

-3-
1.provision ofmilkandcertaindairyproducts atreducedpricesto
schoolchildren witheffectfromthestartofthe1977/78marketing
year;
2.asofNovember 1977,saleofbutteratreducedpricesforthemanu­
factureofices;
3.saleofintervention butteratreducedpricesfordirectconsumption
intheformofconcentrated butter,witheffectfromApril1978;
4.marketpromotion ,advertising andresearch inthemilksectorwithin
theCommunity ;
5.assistance formarketresearchactivities outsidetheCommunity ;
6.incentives toimprovethequalityofmilk;
7.incentives todeveloptheuseandconsumption ofCommunity dairypro­
ductsoutsidetheCommunity intheformoftechnical and/orcommercial
assistance ;
Expenditure ischargedtotheEA6GFGuarantee Sectionagainst revenue
fromtheco-responsibility levyasfollows :
-schoolmilk:50%until31May1978,then2/3;
-butterforicesandconcentrated butter:2/3;
-othermeasures :100%.
Table 1belowshowsrevenue andexpenditure inrespectofthemeasures
listedabove.

-L-
Table1;Revenuefromtheco-responsibility levyandexpenditure on
measures adoptedfollowing theintroduction ofthelevy
millionEUA
Measure1977
(from16.9)1978 1979
estimates16.9.1977
to
31.3.1979
A.Revenuefromco-responsibility levy 24.0 155.8 30.92210.7
B.Expenditure
(a)schoolmilk(Reg.1080/77) 1°.3 28.6 38.9
(b)butterforthemanufacture of
ices(Reg.232/75) 7.5128.2)
)
(c)concentrated butterfordirect
consumption (Reg.649/78)en
+j
01 4.7)44.7
)
)85.1
(d)promotion,advertising and
marketresearch inthe
Community (Reg.723/78)S >
° )
a )o '
(e)marketresearch outsidethe
Community
(f)improvement ofthequalityof
miIka> '
s >
)
2 >
en *10.1 117.9 118.0
(g)assistance fordeveloping use
andconsumption ofdairypro­
ductsoutsidetheCommunity- )
5 )
S >
e )
expenditure /revenue (%) 31= 34%
WhentheCounciladoptedthedecisions fixingagricultural pricesfor1978/79
itreducedtheco-responsibility levyto0.5%forthatmarketing year.The
variousmeasures fortheexpansion ofmarkets cameintoeffectmainlyin1978
andwillgenerate expenditure chargeable tothe1979budget.
b)J)the£measures
Mentionshouldalsobemadeofcertainfurthermeasures adoptedforthe1978/79
marketing yearwithaviewtorestoring balancetothemarket:
-ontheproduction side,increase intherateofpremiums forthenon-marketing
ofmilkandfortheconversion ofdairyherdstobeefproduction ;
-ontheconsumption side:
.reintroduction ofconsumer aidinrespectofsalesofbuttertorecipients
1Thisamountisequalto4.2%oftheexpenditure chargedtoItem6221ofthe
1977Budget:"publicstorageandspecialdisposal measuresforbutterstocks".
^assumingthatthemeasureisadoptedon31March1979.

-5-
ofsocialsecuritybenefits (theUnitedKingdomhasmadeuseofthis
measuresince1November 1978underRegulation (EEC)No2574/78of30
1October 1978whichthusrenewstheaidgrantedtoituptotheendof
1978byRegulation (EEC)No880/77);
.thesaleofbutteratreducedpricesattheendoftheyear("Christmas
butter")introduced in1977wascontinued attheendof1978under
2Regulation (EEC)No1901/78of5August1978;123000tofbutterwere
disposed ofinthisway(70.000tin1977);
.increase intheaidfortheuseofskimmed-milk powderinanimalfeed.
TheprivatestorageaidforItaliancheeses wasextended toincludeProvolone
cheese.
B.Beefandveal
i
Despite someimprovement inthemarketandareduction ofstocksfrom425000t
attheendof1977to305000tattheendof1978,expenditure wasagainquitehigh.
Thepremiums fortheslaughtering ofadultbovineanimals andthecalving
premiums wererenewedforthe1978/79marketing year.
Torelievethemarketatthetimeanimalsarecomingoffgrassandtocounter­
actthefallinmarketprices,Regulation (EEC)No2562/78of30October 1978
wasadopted.Itpermitsthegrantofprivatestorageaidforhindquarters ,at
aratefixedinadvance,whereapplications weresubmitted between 6November
1978and15December 1978inclusive .
Variousotherregulations anddecisions wereadopted bytheCommission tokeep
disposal ofintervention stocksatasatisfactory level.
C.Pigmeat
Becauseofabundant supplies ofpigmeat,particularly ofCommunity origin,the
internal marketpricefell.TheCommission therefore hadtoreintroduce pri-
4vatestorageaidbyRegulation (EEC)No1467/78of29June1978andincrease
exportrefunds.
lojNoL309of1Nov1978p4
,0JNoL216of5Aug1979p43^0JNoL307of1Nov1978p47
0JNoL176of30June1978p12

-6-
D.Products processed fromfruitandvegetables .
Regulation (EEC)No516/77onthecommonorganization ofthemarketin
1thissectorwasamendedon30May1978.Witheffectfrom1July1978
production aidfortomatoconcentrates ,skinnedtomatoes,tomatojuice,
cannedpeachesandprunesinsyrup,wasintroduced toenableproducts
fromtheMediterranean regionstocompetemoreeffectively onCommunity
marketswithimported products .Thefinancial impactofthisaidisof
theorderof160mEUAforoneyear.
E.Driedfodder
On1July1978Regulation (EEC)No1117/78of22May1978^onthecommon
organization ofthemarketindriedfodderenteredintoforce,supplant­
ingRegulation (EEC)No1067/74concerning thissector.Thesystemof
production aidisreinforced bytheintroduction ofadditional aidin
respectofproducts obtained fromfodderharvested intheCommunity,the
amountofwhichvariesaccording totheconditions ofsupplyontheworld
market.Thecostofthissystemamountstoabout40mEUAperyear.
F.Peasandfieldbeans
Fortheseproducts,whichareusedinthemanufacture ofanimalfeed,aid
wasintroduced byRegulation (EEC)No1119/78of22May1978^.Itenables
Community producetocompetebetterwithoilseedcakeimported fromnon-
membercountries withoutlevy.Thefinancial impactisabout6mEUAfor
oneyear.
6.Refundsonproducts notlistedinAnnexIItotheTreaty
(a)Toexpandoutlets,inviewofthelargeCommunity surpluses ofsugar
since1977,thebasicregulations onsugarandisoglucose wereamended
toincludeisoglucose inthelistofbasicproducts onwhichanexport
refundisgranted whenproducts areexported intheformofgoodsnot
listedinAnnexIItotheTreatyofRome.
Regulation (EEC)No1152/78-0JNoL144of31May1978p1
20JNoL142of30May1978

-7-
(b)Amendments tothebasicregulations oncereals andricetoextend
theabovementioned listwerealsofoundnecessary inviewofmarket
trendsandtherequirements oftheindustries exporting basicpro­
ductsinthetwosectors .
Forallthesesectorstheamendments tothebasicregulations were
adopted on4April1978.
1.2.Alterations incertainsectors havingfinancial effectbeginning inthe
1979financial year
A.Oilsandfatssector
(a)On29June1978theCouncil adoptedmajoramendments tothebasic
Regulation onthecommonorganization ofthemarketinoliveoil.
Tobringthemeasures inthissectormoreintolinewithproduction
andthestateofthemarket,theproduction aidappliedhitherto
hasbeenreplaced bythefollowing :
-aidrestricted toexistingolivetrees,grantedatafixedrate
andbasedinparticular onproduction potential ;
-aidforconsumption ,grantedinthedistribution chain.
Theprevious aid,paidtoproducers afteraconsiderable delay,had
anegligible influence onmarketing .Thenewproduction aid,onthe
otherhand,shouldbepaidmorequickly andwillavoidsomeofthe
difficulties ofsupervision .Sinceittakesaccountofthecompet­
itiveposition ofoliveoil,theaidforconsumption hasadirect
influence onthemarketandwillthusfacilitate disposal .
Partoftheaidisalsotobekeptforfinancing regional schemes
forimproving thequalityofoilproduction andforinformation
campaigns designed topromotetheconsumption ofoliveoil.
(b)Tosupport Community production ofcastorseed.Regulation (EEC)No
12874/77wasadopted on19December 1977,providing foraidapplic­
ablefrom1October 1978untiltheendofthe1983/84marketing year.
Generalrulesfortheapplication ofthisRegulation werelaiddown
byRegulation (EEC)No1853/78^of25July1978.
lojNoL332of24Dec1977p1
OJNoL212of2Aug1978p1

-8-
Thisaidisforcastorseedprocessors andissubjecttotheconclusion
ofsupplycontracts withfarmers.Itislikelytoleadtoexpenditure
of0.1mEUAfor1979.
B.Winesector
Anactionprogramme fortheprogressive establishment ofbalance on
themarketinwinewaspresented bytheCommission totheCouncil on
7August1978.Itsaimistoforestall anyimbalances thatmay
resultwhenabigharvestthreatens surpluses ontheCommunity market
intablewines.
Amongthesevenproposals contained intheprogramme attention should
bedrawninparticular totheintroduction ofasystemofminimum
marketing pricesaccompanied bydistillation measures,theincrease
inthemaximumadditional rateofcompulsory distillation from6to8%
andthepossibility ofgranting instantaidinrespectofconcentrated
mustswherenecessary .

-9-
2.Changesintherulesgoverning theEAGGFGuarantee Section
2.1.Financing ofintervention
2.1.1.Definition ofthegeneralrules
TheproposalforaRegulation layingdowngeneralrulesforthefin­
ancingofintervention ,andmoreparticularly theso-called "second
category"intervention (i.e.buying-in,storage andsales),wasfor­
wardedtotheCouncil andtheEuropean Parliament on31December 1977
(see7thFinancial Report,point2.1.1.b).Thelatterdelivered its
opinion atitssitting on12May1978.Theproposal wasadopted by
1theCouncil on2AugustandbecameRegulation (EEC)No1883/78.It
repealsRegulation (EEC)No2824/72andappliestoexpenditure in­
curredonorafter1January 1978,exceptforArticle 7,whichapplies
witheffectfrom1January 1979.
2.1.2.Amendment ofcertain implementing provisions
Theadoption ofRegulation (EEC)No1883/78ledtothefollowing
amendments :
(a)Article 7oftheRegulation laysdownthatifanagricultural pro­
ductstoredbyanintervention agencynecessarily deteriorates as
aresultofstorage,theEAGGFGuarantee Sectionbearstheloss
forsuchdepreciation asfromthetimewhentheproductisbought-
inbytheintervention agency.Thisprocedure reducestheinterest
chargewhichtheEAGGFfinances inrespectoffundsemployed inthe
buying-in ofproducts forstorage anditthusnecessitated the
amendment,on8February 1979,ofRegulation (EEC)No467/77onthe
methodandrateofinterest (8%)tobeusedforcalculating the
costsoffinancing intervention measures comprising buying-in ,
2storage anddisposal .
Thisprovision wasappliedforthefirsttimeinthebeefandveal
sectorbytheadoption on7February 1979ofRegulation (EEC)No
230/79^wiiichfixesinrespect,ofmeatbought-in adepreciation co­
efficient of0.80tobeappliedtothebuying-in price.
-0JNoL216of5August1978p1
•^Regulation (EEC)No241/79-OJNoL34of9February 1979p25
J0JNoL32of8Feb1979p23

-10-
(b)Article 8ofthesameRegulation laysdowntwospecialprovisions
concerning thevaluation ofintervention stocksattheendofthe
year:
-stocksinintervention at31December arenowtobevaluedatthe
averagebuying-in price,andnolongeronthebasisoftheactual
intervention pricepaid(Article 8paragraph 1);
-thevalueofthesestocksmayundercertainconditions bewritten
down(Article 8paragraph 2).
Onthebasisofthesetwofactors -on6December 1978theCommission
1adoptedRegulation (EEC)No2879/78fixingthepricestobeapplied
incalculating thevalueofagricultural products' whichwerein
intervention storageon31December 1978andwhichwouldbecarried
forwardtothe1979financial year.Thesepricesarenormally based
ontheactualbuying-in pricespaidbyintervention agencies during
areference periodextending from1January 1978tothelatestmonth
forwhichthesefiguresareknown.However,asthepricesobtain­
ableonthedisposal ofintervention stocksofsomeproducts (skimmed-
milkpowder,butter,tobaccoandbeef)weresubstantially lowerthan
thebuying-in price,itwaspossible towritedownthevalueofthe
stocksoftheseproducts tobecarriedover,therebeingappropri­
ationsstillavailable attheendofthe1978financial year.This
writing downthusenabledpart(306.2mEUA)ofthelossesthat
wouldbeincurred insellingtheseproducts in1979tobechargedto
the1978Budget (seetable3,page16).
2.1.3.Securities
Theruleslaydownthatoperators mustprovidesecurity incertaincases
toguarantee propercompletion ofcertaintransactions :issueofimport
andexportlicences,tendering procedures ,privatestoragecontracts,and
salesofgoodsfromintervention stocks.Regulation (EEC)No352/78of
220February 1978laysdownthatincertaininstances wherethesecurity
isnotreleased,inparticular wheretheEAGGFsuffers afinancial loss,the
OJNoL342of7Dec1978p14
20JNoL50of22Dec1978p1

-11-
security soforfeited istobededucted bythepayingagencyofthe
MemberStatefromthecorresponding expenditure chargedtotheEAGGF
Guarantee Section (orfromfoodaid).
2.1.4.Procedure forcharging thedualrateeffect
Asin1977,theEuropean Communities' Budgetforthe1978financial
yearprovided foraseparate headingtocarrythefinancial effectof
applyingdifferent conversion ratesformeasures financed bytheEAGGF
Guarantee Section.Thisseparate entryisgoverned byCouncil
1Regulation (EEC)No474/77;thecoefficients tobeusedwereadjusted
on10April1978byRegulation (EEC)No724/78^totakeaccountofthe
changesintherepresentative ratessincethecoefficients werefixed
in1977andoftheuseoftheEuropean unitofaccount (EUA)forthe
Community Budget (see2.4.).
Itshouldbenotedthatthispractice wasdiscontinued on1January
1979;thefinancial effectofthedualrateisnowdivided amongthe
variousrelevant budgetheadings .
2.2.Operation oftheadvances system
Article4(2)ofRegulation (EEC)No729/70laysdownthattheCommission
istomakeavailable toMemberStatestheappropriations necessary so
thatthedesignated departments andagencies maymakepayments inres­
pectofexpenditure chargeable totheEAGGFGuarantee Section.
Consequently ,whenthepermanent systemoffinancing tookeffecton1
January 1971,Regulation (EEC)No2697/70laiddownrulesforadvancing
Community fundstoMemberStatesinrespectofGuarantee Section expend­
iture.
Inthelightofexperience gainedinthematterandchangesintherules
andinthemonetary situation,itwasconsidered necessary toreviewall
theprovisions whichhadbeenestablished .Asaresult,Regulation (EEC)
No380/78wasadoptedon30January1978^.Itsmainprovisions relateto
thefollowing :statements designed tofacilitate monitoring ofthecash
?0JNoL64of10March1977p2
^0JNoL98of11April1978p9
0JNoL56of27February 1978p1

-12-
position,separate supporting documents andadvances forexpenditure
financedpartlyfromtheGuarantee SectionandpartlyfromtheGuidance
Section,newannexesforentering secondcategoryintervention expend­
iture,theconceptofpaymentofexpenditure anditsconsequences for
theaccounts .Italsotakesaccount ofthefactthatinconnection with
theapplication oftheEuropeanunitofaccount (EUA)from1January
1978EAGGFGuarantee Sectionexpenditure isenteredintheaccounts in
termsofnational currencies converted intoEUAusingmonthlyrates.
2.3.Standard amounts
Thestandard amountsprovided fortocoverthecostofphysical oper­
ationsinconnection withthestorage andprocessing ofagricultural
products boughtintointervention ,asfixedbytheCommission Decision
of31October 1977,didnotneedadjustment during1978sincethecosts
incurred bytheintervention agencies didnotcallforsuchadjustment .
2.A.Unitofaccount usedforGuarantee Sectionexpenditure
Since 1January 1978thebudgetoftheEuropean Communities hasbeen
expressed inEuropeanunitsofaccount (EUA)basedontheweighted
averageoftheexchangeratesofMemberStates'currencies ,insteadof
intheunitofaccount (u.a.)whichwasbasedontheratesofthecur­
renciesasdeclared totheInternational Monetary Fund.Thedualrate
1effectrepresents in1978thegapbetweentherepresentative rates
usedinagriculture fortheconversion intonational currencies of
amountsexpressed inagricultural unitsofaccount (AUA)andtherates
usedfortheentryintheCommunity budgetinEUAofthatexpenditure
expressed innational currencies .
Sincethe1978budgetstillprovides foraseparate headingforthe
dualrateeffect (seepoint2.1.4.),thetablesintheAnnexshowthis
separately .Theamountsgivenforthevariousmeasures arethusex­
pressedinagricultural unitsofaccount (AUA);totalexpenditure ex­
pressedinEUAisarrivedatbyaddinginthetotalimpactofthedual
rate.
See7thFinancial Report,points2.1.3.and3.2.D.

-13-
Thetransition fromtheu.a.(IMF)totheEUA,combined withtheseparate
entryofthefinancial impactofthedualratefor1977and1978makesit
ratherdifficult toassessthetrendinexpenditure .Forthisreasonin
thetableatAnnexGXI-onGuarantee Sectionexpenditure from1974to
1978allthedataareexpressed inEUA,theeffectofthedualratehaving
beenrecalculated forexpenditure oneachsectorandincorporated withthe
"agricultural expenditure "oneachofthem.
AnnexGIIsetsouttheexchangeratesforconverting u.a.intoEUAfor
thefinancial years1971to1977.
3.Expenditure in1978
3.1.General
Aswaspointedoutinprevious reports (seeSeventhFinancial Report,page
10),Guarantee Sectionexpenditure isunpredictable because ofagricultural
factors (production andinternal andworldprices)whichinevitably in­
volveadivergence betweenactualexpenditure andtheassumptions madein
thebudget.
Moreover,certainnon-agricultural factorstendtoaggravate theuncertainty ,
namely:
(a)developments inthemonetary situation whichleadtosubstantial expend­
itureonmonetary compensatory amounts andthedualconversion rate(see
3.2.CandD);
)
(b)variations inthetimeelapsing between anoperation andthepaymentfor
itmadebythepayingagencies havetheeffectofincreasing orreducing
expenditure fromoneyeartothenext.Thistimelagisgenerally one
totwomonths,butcanbemuchmoreforcertainmeasures orcountries .
Itisparticularly lengthyinItalyasregardspayments ofaidforthe
production ofoliveoilandthecalvingpremium,althoughitisbecoming
shorter .

TABLE2
COHPMISON MTWEN TMgINITIAL1*78MJMCT«N»iXKIUITUIC
•U.I.(1)
EaptnditurtIn1978 !Differences betweenappro.Iexpend.1978
inniti I t
Sectorappropriations ofWhlch
,
Total I « ••fundi 1stcategory Ii2ndcategory
Intervention (2)||Intervention (3)I■u.e.I X
è • I!! <Ld_
f \o h i
1428.3 999.S 115 744.7 206.1 48.7 -428.8 ! 30,0
'•excluding duruawheat 1304.3 I909.4 10.5 744.7 I116,0 I48.7 -394.9 30.3
"duruawheat 124.- 9°.1 1.0 "l90*X- -33.9 27.3
fttce 36.6 16,7 0.2 1S.8 I°*9- -19.9 53,3
Milkanddairyproducts 289$.9 3365.7 38.8 1313.5 I1.162.7 I889.5 ♦469.8 ♦16.2
Oilsandfats 413.3 333.9 3.9 .0.1 302.S 31.3 -79.4 19.»
~Oliveoil
<I288.5|208.7- 177.3 31-3I-79.8 27.7
-Oilseeds(4) 124.8 125.2 1.5 0.1 125.1 ■* ♦0.4 ♦0.3
Sugar 812,5 770,2 8.» 556.9 213.2 0.1 -42.3 5.2
Beefandveal 460.8 566.7 6.S 121.6 125.5 319.6 ♦105.9 ♦73.0
Pigaot 84.5 38.3 • 0.4 26.4 11.9 -«6.2 54.7
Cggs/pouttryae.t 25.4 33.7 0.4 33.7 - ♦8.3 ♦32.7
Fruit/vegetables 139.2 100.2 1.2 47.5 »•> -39.0 28.0
Wine I224.3! I«.f Ii-s 61.0 -161.8 7>.1
lobacco237.4j209.9. i I** 180.3 I27.0 -27*5 It.6
fisheryproducts I 18.0IU-°• I0.2 •7.2 6.8 4.0 I -22.2
flaxandheap I 15.0 14.4 0.2 14.4 -0-6-4.0
Seeds23.0 17.7 0.2 17.7 -5.3 '23.0
Hops8.0 I*.1 I0.1 '9.1 +i.i -13.8
Sùkworas I1.4 0.6 0.6 -0-8-57.1
Dehydrated fodder16.2 I38.7 I0.4 ia.7 ♦22.5 »238.9
Non-Anne *IIproducts120.0 184.4 ?*1 184.4 - ♦At.4 153.7
Compensatory 1)Accession 30.0 23.1 0.3'23.1 -A.9 -23.0
aaounts 2)Monetary 992.6 717.0 8.3 I 198.5(5>I 51S.S -275-6-27.3
fcrfectofdualrate
|712.9
i1155.4 13.3 284.3 602.1 269.0 ♦442.5I'62.1
10TAL|8695.2~ 8672.7 100 3538.7 3548.8 1585.2 0.3
1 |100' |40.840.9 |18.3IL_
(1)au»a.«ailllonunitsofaccount <3>Intervention consisting ofbuying-1n,storageanddisposal,expenditure whichis
(2)Intervention forwhichunitaaountsofexpenditure arefixedbyCoaaunltyregulations financedbyEAGGfbyaeansofannualaccountsandiscalculated at.standardrates.
(4)Including production aidforsoya
(5)IICAspaidoutinextra-Coaaunity tradeareregarded asrefunds.

-15-
3.2.Appropriations andexpenditure
Theinitialappropriations enteredinTitles6and7andChapters
44to46(expenditure inrespectofAccession Compensatory Amounts
andthedualrateeffect)ofthe1978budgettotalled 8695.25 m
EUA.Ifanon-automatic carry-over of24mEUA,representing
revenuefromtheco-responsibility levyin1977isaddedanda
transfer of16mEUAtothefisheries sector (Chapter 83)isde­
ducted,theresultis8703.25 mEUAinappropriations forthe
1978marketing year.
Table2showsthatexpenditure forthe1978financial yearfinally
amounted to8672.7 mEUA.
Thetwoaboveamountsarealmostidentical becausesavingsofsome
480mEUAweremainlyabsorbed bytheimplementation ofArticle 8
ofRegulation (EEC)No1883/78(see2.1.1),namely:
-therequirement thatstocksinintervention on31December be
valuedattheaveragebuying-in price(145mEUA);
-thepossibility ofwriting downthevalueofthesestocksif
appropriations areavailable attheendofthefinancial year
(306mEUA).
TheeffectofArticle 8,brokendownbysector,issummarized in
Table3.

TABLE NO3
Additional expenditure inthe1978financial yearresulting fromimplementation
ofArticle 8ofRegulation (EEC)No1883/78
SectorFirstparagraph ofArticle 8
(evaluation ofstocksat
averagebuying-in price)Secondparagraph ofArticle 8
(discretionary writing down
ofvalueofstocks)
mAUA mEUA mAUA mEUA
Common wheat
-forbread-making
-non-bread110.2 12.2
Barley 0.4 0.5
Rye 0,1 0,1
Durumwheat 2.9 3.5
Skimmed-milk powder 29.4 35.3 109.0 136.6
Butter 26.5 31.8 80.2 100.1
Oliveoil 21.525.8
OiIseeds
Sugar-
Tobacco 5.6 6.7 7.7 8.3
Beef
-quarters
-boned
-preserves10.4
12.2
1.912.5
14.6
2.328.3
11.0
11.233.9
12.8
14.5
TOTAL 121.1 145.3 247.4 306.2
Noneinstorage

-17-
Itshouldbenotedthatthediscretionary writing downis16.54ofthe
averagebuying-in priceforskimmed-milk powder/butter,tobacco andmeat
preserves .Itislessforunbonedmeatthanforbonedmeat:13%and6.5%
respectively ,becauseoftherelatively higherdisposalpricesforthese
products .
3.3.Comparison betweeninitial 1978appropriations anddisbursements 1
Table2comparesinitialbudgetappropriations withdisbursements effected
bytheendofthefinancial year,afteradjustment oftheappropriations
available bycarry-overs from1977andtransfers ofappropriations .
A.Theagricultural sectors
Thefollowing observations ariseonindividual sectors :
(a)forcerealstotalexpenditure was429mAUAlessthantheestimates,
mainlyduetoabelow-average harvest.Thissituation isreflected
primarily inexpenditure onexportrefunds (thelargestiteminthis
sector):334mAUAlessthanestimated .Itshould,however,benoted
that,despitethepoorcrop,expenditure onrefundsin1978wasalmost
doublethatofprevious years.
Againbecauseofthepoorcropin1977,butalsoasaresultofan
activepolicyonrefunds,expenditure onintervention buying-in
remained 44mAUAbelowestimates .TheCouncil Decision torestrict
thegrantofthecarry-over paymenttocertaincerealslimitedexpend­
itureonthismeasureto10.4mAUAinstead oftheestimated 33mAUA.
Asregardsdurumwheat,areduction intheareaunderthiscrop,but
aboveallthefailuretomakeupthebackloginpaymentledtoexpend­
iturebeingsubstantially (34mAUA)belowtheestimate .
(b)Inthemilkanddairyproducts sector,expenditure amounted to3365.7m
AUA,469.8mAUAmorethantheestimates .Itshouldbenoted,however,thatmore
thanhalfofthisamount,i.e.245.1mAUArepresents additional expend­
itureund£r.the 1978Budgetduetoimplementation ofArticle 8of
Regulation (EEC)No1883/78(valuation ofcarry-over stocksattheir
averagebuying-in priceanddiscretionary writing downoftheirvalue).

-18-
Thisprovision wasnottakenintoaccountinthe1978Budget.
Overall,givenconstantly increasing production ,averyactivepolicy
ofdisposal wasnecessary bothontheworldmarketandontheinternal
market.Particularly ontheexportfronttheincrease inquantities
andcontinued lowworldpricesmadeexpenditure onrefundsexceed
estimates by310mAUA.
Asregards skimmed-mi Ikpowder,effortstopromotesalesintheanimal
feedsectorwerepursuedenergetically ,withtheresultthatexpend­
itureexceeded estimates by104mAUA.Bythesemeansintervention
stocksofskimmed-mi Ikpowderwerereducedfromalmost 1milliontat
theendof1977to722000tattheendof1978.Expenditure onpublic
storage andspecialdisposal measures wasthusmuchasestimated,if
oneleavesoutofaccountthei138mAUAofadditional expenditure aris­
ingfromtheimplementation ofArticle 8ofRegulation (EEC)No1883/78.
Forbutter,againexcluding 106.7mAUAofadditional expenditure aris­
ingfromtheimplementation ofthesaidArticle 8,expenditure wasas
estimated .However,therewasasubstantial increase inthequantities
inpublicstorage :from142000tattheendof1977to258000tatthe
endof1978.Thisincrease isofcoursereflected inexpenditure .
Asregardstheothermeasures,expenditure relatingtothefinancial
contribution towards thefreedistribution ofmilktoschoolchildren
andthecontribution bytheGuarantee Sectiontowardsnon-marketing
premiums formilkandconversion premiums tobeefproduction wasmuch
belowtheestimated level.
Finally,theCouncilDecision toreducetheco-responsibility levyby
0.5%forthe1978marketing yearledtoasubstantial decrease in
revenue.Itamounted to137mAUA,insteadofthe214mAUAforecast .

-19-
(c)Fortheoilsandfatssectorsthedelayinthepaymentofproduction
aidforoliveoilcontinued .Asthe1978estimate assumed some
catching upofthebacklogthisitemwastherefore underspent .Ex­
penditure onintervention buying-in andsubsequent operations amounted
to31mAUA,ascompared withtheestimate of15mAUA.Thehigher
thanexpected buying-in increased stocksfrom49000tattheendof
1977to105000tattheendof1978.Expenditure onproduction aid
forcolzaseedwasslightly more(9mAUA)thanexpected asaresultof
thedropinworldpriceswhichledtoanincrease intheaidin
autumn1978.
(d)Inthesugarsectorthesurplus,including ACPsugar,grewin1978;
thisisreflected inthelevelofexpenditure whichshowedanincrease
ofabout300mAUAonthatoftheprevious year,thoughat770.2mAUA
itwasslightly lessthanforecast (812.5mAUA);thiswasmainlybe­
causeexpenditure onexportrefunds,whichaccounts for75%oftotal
expenditure inthissector,waslessthanexpected duetoaslight
decrease intherates.
(e)Inthebeefandvealsector,notcounting expenditure of65mAUAre­
sultingfromtheapplication ofArticle 8ofRegulation (EEC)No
1883/78,expenditure exceeded thebudgetestimate by30.9mAUA.In
thissectortheimprovement ontheinternal marketwasslowerthan
expected,whichmeantthatexports hadtobeincreased (30mEUAmore
thanestimated )andledtoaslowerrundown ofintervention stocks
(26mAUAexpenditure morethantheestimate,excluding 75mAUAre­
sulting fromtheapplication oftheArticle 8mentioned above).On
theotherhand,forsomeothermeasures (suchasprivatestorageaid,
thepremiums fororderlymarketing andthecalvingpremiums )expend­
iturewaslessthanforecast .
(f)Inthepigmeatsectorthemarketcontinued toberelatively stablein1978,
andthequantities exported werelessthanforecast,aswerethe
ratesofrefund.Thesefactors combined tokeepexpenditure relatively
lowinthissectorcomparedwitfTothers .Nonetheless ,therehasbeen
asteadyincrease inexpenditure since1976inlinewiththesteadyex­
pansionofproduction .

-20-
Cg)Intheeggsandpoultrymeat sector,primarily asaresultofincreased
exports,expenditure onrefunds was7.5mAUAmorethanforecast .
(h)Inthefruitandvegetables sector,expenditure was39mAUAlessthan
expected,mainlyasaresultofthepoorcropofapplesandpears,
whichmeantthatthequantities withdrawn fromthemarketweresmaller
thanexpected .
(i)Inthewinesectortwosuccessive poorharvests havebroughtabouta
situation inwhichthemeasures introduced todealwithsurpluses have
hardlybeenneededtobeapplied.Thetotalexpenditure of62.5m
AUAamounted toonly28Zofappropriations .Itshouldbenotedthat
theprovisions toguarantee performance oflong-term contracts have
beenverylittleusedandthatexpenditure ondistillation wasvirtually
niI.
(j)Asregards rawtobacco,totalexpenditure was27.5mAUAbelowthe
forecast (237.4mAUA).Forsomevarieties thecropwaslessthanex­
pected,buttherewereseriousdifficulties inthedisposal oforiental
varieties,largequantities ofwhichweretakenintointervention .The
quantities inpublicstoragethusincreased from16400tattheendof
1977to21600tattheendof1978.Compared withtheestimates,ex­
penditure wasdown43mAUAasregardsthemarketing premium andup
18mAUAforpublicstorage.
(k)withregardtotheothersectors,expenditure onaidinrespectofdehy­
dratedordriedfodderwas22.6mAUAmorethanthe16.2mAUAforecast .
Amajorreviewofthissectorwasundertaken in1978withtheobject
ofencouraging Community production (see1.1.2.E).
(I)Finally,itshouldbepointedoutthatexpenditure onrefundsforcer­
taingoodsobtained byprocessing agricultural products (non-Annex II
products )exceeded theinitialappropriations by64mAUA.Thisin­
creaseinexpenditure wasduetothehighratesofrefundonthebasic
products fromwhichtheyarederived andalsototheeverincreasing
quantities exported .

-21-
B.Accession compensatory amounts (AUAs)
Theseamounts wereabolished on1January 1978.Expenditure recorded here
thusrelatestopayments inrespectoftransactions in1977.
C.Monetary compensatory amounts (MCAs)
Thedifference betweentheappropriations provided forinthebudget (9926
mAUA)andexpenditure (717mAUA)isaccounted formainlybythefactthat
itwasdecidedinDecember 1977tocontinue thesystemwherebytheexport­
ingMemberStatepaysMCAsfortheimporting MemberStateinintra-Community
tradewiththeUnitedKingdom andItaly,whereastheBudgetassumedthat
thissystemwouldnotbecontinued .Although,sincetheintroduction ofthe
EUAintothebudget,continuing thissystemhasnothadanyeffectontotal
expenditure ,itinvolved asubstantial transfer ofappropriations fromthe
budgetheadingforMCAstotheheadingforthedualrate.Thereasonfor
thiswasthattheamountsinnational currency oftheMCAsgranted,since
theyhavethesamevaluewhetherornotthissystemisapplied,thusrepre­
sentthesameamountinEUA(including thedualrate).Theapplication of
thissystem,wherebytheamountispaidinnational currency byMemberStates
whosecurrencies haveappreciated againstthepoundandlira,increases the
amountchargedagainstthedualrateheading andreducestheamountcharged
againsttheMCAheading.
ForthepoundandtheFrenchfranc,inparticular ,thelevelsofMCAsin1978
weredifferent fromtheassumptions onwhichthebudgetwasbased.Inboth
cases,rigeneral,MCAswerelower,leadingtoreducedexpenditure forthe
UnitedKingdom andlowerreceipts forFrance.
D.Theeffectofthedualconversion rate
Asmentioned inpoint2.4,since1978thebudgethasbeenexpressed inEUA.
Thedualrateeffectthusrepresents ,sincethen,thedifference betweenthe
agricultural representative ratesandtheEUArates.Asmentioned above,
thecontinuance ofthesystemwherebytheexporting MemberStatepaysthe
MCAfortheimporting MemberStatehasledtoatransfer ofappropriations
oftheorderof250mu.a.fromtheMCAheadinginthebudgettothedual
rateheading,whichaccounts formostofthedifference betweentheestimates
(712.9mu.a.)andtheexpenditure recorded (1155.5mu.a.).Moreover,com­
paredwiththeassumptions onwhichtheBudgetwasdrawnup,therepresent­
ativerateswerechanged (byCouncildecision )inawaywhich,overall,in­
creasedthedualrateeffect.Finally,theshareofexpenditure ofcertain
MemberStateswithanabove-average dualratecoefficient isgreaterthan
expected .

-22-
TABLE4
MCALevelsappliedintrade
Ratesemployed intheBudget Ratesrecorded in1978
jCurrency (September 1977) Minimum .MaximumI
IDM+7.5 7.2 TL1I
IBFR/LFR +1.4 • 1.4 3.3
jHFL+1.4 1.433I
-13.4 -2.9"23"I
LH "15,1 -10.2 -26.-
IUKL -3!.9 -22.6 -39.9
jIRL-4.3 -0.810.7j
3.4.Breakdown ofexpenditure bytype
ThetableatAnnexsXIIdiffers fromthosepresented inprevious reportsinthat
anewcolumnhasbeenaddedshowingthebreakdown ofintervention expenditure .
Itrelatestotheguidance premiums whicharedesigned tohaveadirectinfluence
onproduction .Atpresent,thesepremiums areforthenon-marketing ofmilkand
theconversion ofdairyherdstobeefproduction ,whicharefinancedpartlyby
theGuarantee Section (60%)andpartlybytheGuidance Section (40%)andcalving
premiums toaidthereplenishment ofcattleherds.
Itcanbeseenfromthetablethat:
(a)expenditure onrefundshascontinued toincrease inabsolute termsasare­
sultoftheCommunity'sexportdriveontheworldmarket,particularly in
respectofdairyproducts,cereals,sugarandNon-Annex IIprocessed )pro­
ducts.Thisexpenditure in1978totalled 3055,9mAUAandrepresented
aboutthesamepercentage asin1976and1977(about45%).
(b)asregardsintervention expenditure inthestrictsense,thelargestitem
isagainaidontheinternal marketintheformofpricecompensation (aid
inrespectofskimmedmilkforanimalfeedandproduction aidforolive
oil)whichhasconsiderably decreased inrelative value(33%in1977and
27%in1978).Ontheotherhand,thecostsrelatingtostorageofinter­
ventionproducts andprivatestoragehaveincreased from18,8%in1977to
24,4%in1978.

-23-
Withregardt)so-calledsecondcategory intervention expenditure ,i.e.for
intervention buying-in,storageanddisposal ofproducts,AnnexGXII
givesthebreakdown (seepoint3.3coftheSeventhFinancial Report)
by:
-costofphysical operations incidental tostorage;
-interest chargesonfundsnecessary forbuying-in ;
-expenditure representing thedifference betweenthebuying-in anddis­
posalpricesforproducts .
Thelargedifference betweenthecostofbuying-in andtheproceeds from
salesisexplained asregardsmilkproducts andbeefbythespecial
measures whichweretakentodisposeoftheintervention stocksofcertain
products withaviewtoincreasing consumption .Moreover,thisdifference
includes theamountof247.4mAUAforexpenditure relating tothedis­
cretionary writing downofthevalueofstocks(seetable3).
(c)Expenditure resulting fromthemonetarysituation,particularly thaton
monetary compensatory amounts,waslessthanin1977(717mAUAin1978,
against 8595mAUAin1977)andrepresents 8.3%oftotalGuarantee Section
expenditure .Ontheotherhand,expenditure resulting fromtheaoplication
ofdifferent exchange rates(dualrate)increased substantially from509m
AUAin1977to1155.4mAUAin1978.Totalexpenditure resulting fromthe
monetarysituation thusrosefrom1369.4mAUAin1977to1872.4mAUAin1978,
i.e.21.5%oftotalGuarantee Sectionexpenditure ascomoared with20.6%
in1977.

-24-
3.5.Corrections tobemadeinthebreakdown ofexpenditure byMemberStateasaresult
ofthesystemwherebytheexporting MemberStatepaystheMCAsonintra-trade for
theimporting MemberState
Thesystemwherebytheexporting MemberStatepaystheMCAsinintra-Community
tradefortheimporting MemberState,basedonArticle2aofRegulation EECNo
974/71hasbeenappliedsince1976inintra-Community tradewiththeUnited
KingdomandItalytoreducethedualrateeffect(seepoint3.2.DoftheSeventh
Financial Report).Although,sincetheintroduction oftheEUAintotheBudget,
application ofthissystemhasnotaffectedtheleveloftotalexpenditure ,the
Councildecidedtocontinue thesystemin1978(see3.3.CandD).
Thissystem,ofcourse,hastheeffectofmodifying thebreakdown ofexpenditure
byMemberState;theattachedtableshowsthesecorrections ,whicharealso
takenintoaccount attheendofAnnex GVIII.
TABLE5
Expenditure corrected pursuant to
Article 2aofRegulation EECNo974/71
(the"Exporter-pays "system)
mEUA
MemberStateBreakdown of
expenditure ,
notcorrectedCorrectionsBreakdown ofexpenditure i,corrected
Amount7,
1978%
1977
Belgium 601.8 -43.0 588.8 6.5 5.7
Denmark 806.3 -238.5 567.8 6.6 6.4
Germany 2489.0 -172.9 2316.1 26.7 16.7
France 1739.4 -288.5 1450.9 16,7 19.7
Ireland 552.2 -210.9 341.3 3.9 6.0
Italy 747.1 +418.4 1165.6 13.4 19,2
Luxembourg 23.9 23.9 0.3 0-1
Netherlands 1273.9 -179.0 1094.9 12.6 10.6
UnitedKingdom 439.0 +714.4 1153.4 13.315.3 I
Total EEC|8672.70 8672.7 100 (100

-25
3.6 .Agricultural levies
Agricultural levies andthelevy onsugar production arepart ofthe
Community 'sownresources ,butthey areindicated here bywayofinfornr
ation because ofthe close economic connection between them and certain
expenditure bytheEAGGF Guarantee Section ,
Table 6shows that the total ofthese resources continued toincrease
in1978 .Inthe case oftheagricultural levies theincrease resulted
from the fall inworld prices ,despite thedecline inimports .Asre­
gards sugar ,theexpansion ofproduction inthis sector caused thelevies
torise .
Table 6:Levies under the common agricultural policy
mEUA
Type ofagri­
cultural levy
I1974 1975 1976 1977 1978
Import levy
Sugar production levy
J279,9
81.0
I534.0 I
|
86.η !
! Ί1040.1
-133.2
i
i1816.9
320.81872.7
406.3
■
TOTALi :
i
360..9 |620.01173.3
i2137.7 2279.0
Asregards thesugar levies ,annex GXIVshows ,bywayofinformation ,the
r?lationship between the levies charged andthereimbursement ofstorage
costs sipce 1968 /69bysugar year .Itshould benoted that the aimofthe
common organization ofthemarkot insugqr istoestablish long-term
equilibrium between levies andreimbursements ofstorage costs .
3.7 .Total cost ofthe Guarantee Section aspercentage ofthe Community 'sgross
domestic product atmarket prices (GDP )
Since agricultural levies increased little incomparison with gross EAGGF
Guarantee Expenditure ,netexpenditure wassubstantially higher in1978
than in1977 ,primarily because ofhigh compensatory amounts .Netexpend­
iture bytheEAGGF Guarantee Section thus represents ahigher percentage of
theCommunity 'sgross domestic product atmarket prices than in1977 :0.41%
ascompared with 0.34% (seeAnnex GXIII ).

-26-
TITLE II
CASH POSITION AND FINANCIAL ADMINISTRATION
Inthe1978 financial year theinitial appropriations entered inthebudget
(Chapters 44,45and46andTitles 6and 7)proved sufficient (8695.25 m
EUA).
With atransfer ofappropriations of16mEUAtoChapter 83andthenon-
automatic carryover from 1977 (24mEUA)thetotal appropriations avail­
able amounted to8703.25 mEUA .
Attheendofthefinancial year almost alltheappropriations hadbeen
made available tothe Member States (8700.6 mEUA).
Thebudget forthe 1978 financial year wasthe first tobeexpressed in
European units ofaccount (EUA).
Forthe EAGGF Guarantee Section appropriations areexpressed inagricul­
tural units ofaccount under each item ,whereas thetotal isexpressed in
EUA;thedifference isentered inChapter 46.
Expenditure effected inthe currencies ofthe Member States wasentered .
against each budget item after conversion into agricultural units of
account byapplying thecoefficients fixed inCommission Regulation (EEC)
1No724/78,while themonthly total ofthe same expenditure wasconverted
into EUAusing therates applicable onths20th ofthesecond month pre­
ceding that inwhich theexpenditure wasincurred bytheauthorized de­
partments andagencies .
These coefficients andrates andtheaverage rates fortheyear obtained
bydividing thetotal expenditure expressed innational currencies bythe
total expenditure expressed inEUAarereproduced forinformation in
Annex GII.
Theuseof12monthly rates fortheconversion ofexpenditure into EUAhas
necessitated theadjustment ofcertain tables contained inthebody ofthis
report and inthe Annex .
0JNoL98of14April 1978 p9

-27-
Theexchangedifferences resulting fromtheadjustment ofthebalanceof
appropriations inthehandsofMemberStatesafterexpenditure foreach
monthhasbeentakenintoaccountareenteredintheappropriate Budget
heading (Chapter 45).Thetotaldifferences in1978aregiveninAnnex
GVIII.
1
Witheffectfrom1January 1978Commission Regulation (EEC)No380/78
replaced Regulation (EEC)No2697/70(seepoint2.2.).
4.Thecashposition
TheMemberStatescommunicate totheCommission eachmonthinformation ,
prepared bythedepartments andagencies authorized tomakepayments,
concerning thecashposition,thepayments madeintheprevious month
andestimated expenditure forthecurrentandfollowing twomonths.
Onthebasisofthisinformation theCommission ,afterconsulting the
EAGGFCommittee,determines andpaysouteachmonthtotheMemberStates
theadvances required bythepayingdepartments andagenciesuntilthe
endofthefollowing month,i.e.thelastmonthcovered bytheexpend­
itureestimates .
Ifthefundsmadeavailable toaMemberStatearelikelytobeexhausted
beforethedateonwhichthenextadvance isdue,aspecialadvance may
bedecided on.
TheMemberStatesallocate thefundsreceived betweenthepayingdepart­
ments.
0JNoL56of27February 1978p1

-28-
4.1.Advances toMemberStates (Annexes 6IVandGV)
Inaccordance withArticles 4and5ofRegulation (EEC)No729/70and
Regulation (EEC)No380/78theCommission decided on19advances,7of
themspecial ones,forthe1978financial year.Sixofthespecial
advances wereforoneMemberStateandweremadenecessary bythefact
thatexpenditure forthemonthsofMarch,May,July,September and
October wereunderestimated ,andoneconcerned sevenMemberStatesand
wasrequired byreasonoftheapplication ofArticle 8ofRegulation
1(EEC)No1883/78(methodofvaluingproducts inintervention stocksat
31December 1978).
Inrespectofexpenditure relating tothepremiums forthenon-marketing
ofmilkandtheconversion ofdairyherds,whicharefinanced byboth
theGuarantee Section (60%)andtheGuidance Section (40%)theCommission
adopted 13decisions onadvances,including onespecial advance made
necessary through anunderestimate ofexpenditure forJune.
Inthispartofthereportthisexpenditure isshownintotoforcash
position purposes andasto60%forbudgetary purposes .
24.2.Fundsavailable intheMemberStatesduringthefinancial year
Apartfromthebalanceof417.4 mEUAon1January,theMemberStateshad
attheirdisposal duringthe1978financial yearadvancestotalling
8354.2 mEUA.
Totalfundsavailable were8771.6 mEUA,ofwhich8700.6mEUAwere
fortheGuarantee Section and71mEUAfortheGuidance Section.
Ofthesefunds8737.7mEUAwerespent,leaving abalanceof33.9mEUA
on31December 1978.
0JNoL216of5Aug1978p1
2seetable 5

TABLE NO7
FUNDSAVAILABLE TOANDEXPENDITURE BYMEMBERSTATES FORTHE1978
FINANCIAL YEAR
[MEMBER IFundsavail|rCorrections ]Corrected fundsavailable Advancesfor|TotalIExpendlturç 1Availablelutilization J
STATE ableon;
31Dec,77
igu.a.
(1)on31Dei77
mu.a.on1Jan78
équivalent
inmEUA1978finan-i
cialyear
(including ,
exchange
differences
.mFIIAavaiIable
for1978
frnanciat
year^
mEUAfrom1Jan
78.to31
Dec78on31
78afadvances
(a)<b)(c)=(a+b) (d) [(e) I(f)=(d)+(e!L(g)I(h)=(f)-(a)(i)=g/f.lod
BELGIUM
.DENMARK7jt>
!
6.1(2)token
entry7.6
6.19.2
\
6.3598.4
815.3607.6
821.6603,-
811.14.6
10.599.2
98.7
GERMANY I28.7(2)♦2.4|
I|.31.1 43,5 2471.2 2514.7 2524,6 -9.9 100.4
FRANCE 129.1 (2)♦3.6 132.7 130.2 1671.4 1801.6 1755.-46.6 97.4
IRELAND -1.4 -1.4 -0.9 558.3 557.4 552,5 4,9 99.1
ITALY '291.7(4)(3)♦6.6 298.3 182.1 557.1 739.2 747.2 -8.- 101.1
LUXEMBOURG 0.5 (2)token
entry0.5 0.7 23,6 24.3 24.2 0.1 99.6
NETHERLANDS 23.7 (2)♦0.9 24.6 31.6 1227.6 1259.2 1277.1-17.9 101.4
UNITED
KINGDOM22.8 22.8 14.7 431,3 446,- 443.- 3.- 99.3
TOTAL: 508.8 13.5
I522.3 417.4 8354.2 8771.6 8737,7 33.9
I99.6
ofwhich .-Guarantee 408.2 8292.4|[8700.6I8672,8(5)127~H 99.7
-Guidance !±J61.871.-|!64,9|6.1 91.4|
(1)Guarantee +milkpremiums 100%.
(2)Milkpremiums 40%.
(3)Decrease inAIMA1stcategory expenditure .
(4)Theseavailable fundsarepartlyduetotheeffectsofthetransfer mechanisms forintervention products (see7th
financial report).
(5)Including anamountof0.1mu.a.duetothemodification ofthedecisions forauditandclearance ofaccounts
1971and1972.

-30-
TABLE NO8
PERCENTAGE USEOFCOMMUNITY FUNDS
INTHE1978FINANCIAL YEAR
(Guarantee +NonMarketing andDairyHerdConversion Premiums at100%)
mEUA
Mean
fundslevelofCommunity
available intheMeanbalance available
afteronemonth'sMeanpercentage
utilization
MEMBER STATEMember
month'Statesforone
sexpenditure jexpenditure (see
Annexes GVIandGVII
(seeAnnexes GVIand lines E)
GVIIlines C)
!
!
i(a) (b),.(a)-(b)(c)a–T~\–-100(a)
BELGIUM 56.8 6.6 88%
DENMARK 69.9 2.3 97%
GERMANY 251.9 41.4 84%
FRANCE 224.1 77.8 65X
IRELAND 51.- 5.- 90%
ITALY 154.5 92.3 40%
LUXEMBOURG 2.4 0.4 83%
NETHERLANDS 96.2 -10.3 111%
UNITED KINGDOM 44.3 7.4 837.
EEC 951.1 222.9 77%

-31-
4.3.Percentage utilization ofthefundsavailable
Acomparison ofexpenditure inthe1978financial yearwiththefunds
available toMemberStatesforthatyearshowsthat99.6%ofthefunds
madeavailable wereused(Table7columni).
Acomparison ofthefundsavailable tomeeteachmonth'sexpenditure in
theMemberStateswithfundsremaining afterpaymentofexpenditure
(Table8)showsanaverageutilization of77%.
Thisrateisadistinct improvement on1977(64%).Ananalysis ofthe
basicdata(Annexes GVandGVI)showsthatafurther improvement is
possible,especially inItalyandFrance.
5.Financial administration
5.1.jSummar^of_avai^l_abl_e_a£p£^0£r j_a_t,i£n^
Initialbudget
Transfer toChapter 83
Non-automatic carry-over from1977to1978
(co-responsibi lity)
8703250000EUA
5.2.Transfer of_ap£rop_ri_at_TO_ns
Thewayinwhichexpenditure developed duringthefinancial yearledthe
Commission topropose atwo-stage transfer ofappropriations between
chapters withintheEAGGFGuarantee Section :
(a)Thesupplementary andamending budget No2wasconcerned onlywith
transfers withinChapter 62(breakdown ofexpenditure relating toco-
responsibility );
(b)AftertheCommission hadreceived thestatements ofexpenditure upto
31July1978andtheestimates forthefollowing threemonths,it
appearedthatappropriations wouldbeinsufficient insomesectors;
theCouncil,actingonaproposal fromtheCommission ,accordingly on8695250000EUA
-16000000EUA
+24000000EUA

-32-
...TABLE N°9
Transfers ofaonronri *tions1000EUA
r~i IInitial"1Transfers ofappropriations |[\lon-automaticITotal I
IChap.ISectorbudgetfor1978 I
_ ]Ito.article
183
Lwithin
EAGGF
GuidanceJcarry-over of
jappropriations
jfrom1977appropri­
ationsavail­
able (1)
I(a) ||(b)I(c)I(d)
I60Cereals j1428300 -14000 414742 999558
41Rrce J36600 19.883 16717
62 .Dairyproduct !2895850 *478454 +21783 3396087
« ,0ilsandfats 413300 -79426 333874
64 ISugar 812500 42290j7to210
65Beefandveal 460800 ♦105944 566744
66Pigmeat 84500 46220 38280
67 .Eggs/poultry-
meat25400 +8278 33678
68
69Fruit/veget-
Iables
Wine139
224200
30038
161999
780100201
62520
hi
Tobacco 237400 27487 209913
71
72Fisherypro­
ducts
Alcohol18000
tokenentry3979 14021
tokenentry
»Othersectorsl I63600 ♦17945 81545
74PRefundsonI
processedprojL.12<>000 •♦64353 184353
" ACAs 30000 6880 23120
« MCAs' 992600 275643 716957
46Dualrate 712900 -2
i000 +442355 ♦2217 1155472
Tota-l 8695250 -16
I000 0 ♦24000 8703250
(1)Fullyutilizedexcept30A30739.03EUAinChapter62forwhichacarry-over to
1979hasbeenrequested .

-33-
12February 1979approved transfers tomeetexpenditure inthefol­
lowingsectors:milkanddairyproducts (+425mEUA),non-Annex II
products (+57mEUA),beefandveal(+120mEUA),eggsandpoultry-
meat(+5mEUA),othersectors (+15mEUA)anddualrate(+207m
EUA).
(c)Inthelightoftotalexpenditure incurred in1978afinalseriesof
advances wasdecided onbytheCouncil on9April1979.
5.3.Expenditure
5.3.1.Expenditure ^taken _Tn_cha£ge
Expenditure declared bytheMemberStatesashavingbeenpaidupto
31December 1978andchargedagainsttheGuarantee Sectionforthe
1978financial yearamountsto8672699601.87 EUA.
Ofthistotal,15.45%represents expenditure connected withpublic
intervention ,71.23%exportrefunds andotherintervention measures
and13.2%thecostsarisingfromapplication ofdifferent exchange
rates.
Adetailed analysis ofexpenditure bysectorisgiveninthefirst
partofthisreportin.Table2andinAnnexGVIII.Thebreakdown
ofexpenditure byMemberStateisgiveninthetablebelow.
Thisbreakdown should betreated withcaution because thetimetaken
tomakepayments canvaryconsiderably fromoneMemberStateto
another andtheexpenditure madebythepayingagencies inagiven
MemberStatecannotbeconsidered asitsown,sincetheCommunity is
asingleeconomic entity.

-34-
Table10
Breakdown of1978expenditure byMemberState
1andtypeoffinancing
MemberStateRefunds Intervention
DualrateTotals 1978 1977
mEUA mEUA mEUA % 7.
BELGIUM
I326.1 164.0 111.7 601.8 6.94 6.29
DENMARK 295.6 366.9 143.8 806.3 9.30I9.39
GERMANY 580.8 1284.4 623.8 2489.0 28.70 18.72
FRANCE 890.2 785.0 64.2 1739.4 20.06 23.62
IRELAND 161.5 332.8 57.9 552.2 6.37 8.84
ITALY 98.9 695.1 -46.8 747.2 8.6114.41
LUXEMBOURG 1.6I
i17,8 4.5 23.9 0.27 0.12
NETHERLANDS 595.1 440.6 238.2 1273.9 14.69 13.33
UNITED KINGDOM 304.6 176.3 -41.9 439.0 5.06 5.28
EECTOTAL 3254.4 4262.9 1155.4 8672.7 100.-100.-
Thistakesnoaccountofcorrections tothebreakdown ofexpenditure by
MemberStatearisingfromthesystemwherebytheexporting MemberState
paysMCAsinintra-Community tradefortheimporting MemberState(see
Table5)norofthemovement ofreceipts betweenintervention agencies
resulting fromthetransfer ofproducts ata"zero"price.
5.3.2.Budg_et_exp^ndi_ture
Thedeclarations ofexpenditure incurred byMemberStatesupto31December
1978werescrutinized bythestaffoftheEAGGFGuarantee Section andgave
risetoanumberofcommitments andpayments againstthebudget.
5.3.2.1 .Commitments
Periodically twotypesofcommitment aremade:globalcommitments forfunds
available toMemberStatesforpayments andspecific commitments bybudget
itembasedonpayments bythepayingdepartments .

Thetotalamountofexpenditure committed for1978includes,inadditionto
theexpenditure paidduringthefinancial year-119659.10 EUAresulting
1fromtheamendment oftheclearance decisions relating to1971and1972.
Amountavailable toMemberStatesatthe
beginning ofthe1978financial year 408254022.75 EUA
Advances toMemberStatesfor1978 8292374456.36 EUA
Totalglobalcommitments 8700628479.11 EUA
Specific commitments bybudgetitem 8672819260.97 EUA2
Balanceofglobalcommitments tobe
released andcarried overto1979 27809218.14 EUA
5.3.2.2.Payments charged
(a)1978expenditure
Theexpenditure chargedagainstthe1978financial yearisexactlyequal
tothespecific commitments .Thiswasachieved throughArticle 9of
Regulation (EEC)No380/78whichclarified thedefinitions ofpaymentto
beapplied bythepayingagencies andthroughthemeasures takenbythe
payingagencies (particularly inItaly)tocomplywiththem.
(b)1977expenditure
Thecorrected AIMAexpenditure for1977totalling 605785104.57 EUAwas
alsochargedtothe1978budgetasapayment.
1
Commission Decision 78/710/EECof28July1978-0JNOL238
2ofwhich24000000EUAticarry-overs .

-36-
Carry-overs
5.4.1._Use£f_a£p£0£ri_aH£ns _ca_rriedoverfrom1977^o_1_978
Theappropriations carriedoverfrom1977to1978wereusedasfollows :
Appropriations automatically carriedover
(specific commitment ) 609814454.78 ÈUA
1Non-automatic carry-overs 24000000.00 EUA
633814454.78 EUA
Payments charged 629785104.57 EUA
Appropriations lapsed 4029350.21 EUA
5.4.2._Ca£T^-£vers _fr_om_1_97_8 to_1_979 ^
Asenvisaged duringtheprocedure forapproval ofthe1979Budget,the
Commission hasproposed tothebudgetary authority thattheappropriations
outstanding on31December 1978underItem6240(Financial contribution by
theGuarantee Sectiontopremiums forthenon-marketing ofmilkanddairy
herdconversion ),amounting to30430739.03 EUA,becarriedover.
jjujnmar^ofusemadeof_a£p_ro£r_i_a_t_i ons
Appropriations available (see5.1.) 8703250000.00 EUA
Payments charged 8672819260.97 EUA
Unusedappropriations proposed for
carry-over to1979 30430739.03 EUA
Thissituation issummedupinAnnex6I.Thecorrespondence between pay­
mentscharged,specific commitments andavailable appropriations makes
tables 6IIand6IIIwhichwereincluded intheAnnextothefinancial
reportforthe1977financial yearunnecessary .
1
Fromtheseappropriations expenditure inthe1978financial yeartopro
motetheexpansion ofmarketsinmilkproducts hasbeencommitted and
chargedagainstthebudget.
2Corresponding tothecorrections to1977expenditure byAIMA.

-37-
TITLE III
VERIFICATIONS AND IRREGULARITIES
Veri fications
Characteristics
6.1.1 .General
Since theMember States areresponsible forgiving effect toCommunity rules
itisthey whokeep theaccounts andthedetailed supporting evidence relat­
ingtomost EAGGF expenditure andrevenue .Forthis reason inspection visits ,
which theCommission hascontinued anddeveloped in1978 areofparticular
importance .
Inthis connection ,theCommission staff operate avariety ofchecks onex­
penditure financed bythe EAGGF .Tomake these checks more effective the
Commission decided on25January 1978 tosetupaninterdepartmental working
group responsible forcoordinating inspection visits toMember States in
connection with theCommunity 'sownresources andwith expenditure financed
bytheGuarantee Section ofthe EAGGF .
6.1.2 .The different kinds ofverification
(a)According totheofficials responsible forthe checks one candifferenti­
atebetween twocategories : %
-checks carried out byCommission officials :(first andsecond subpara -
graphs ofArticle 9(2 )ofRegulation (EEC )No729/70)
.verification atthetime ofthevalidation ofexpenditure (specific
items orrelating toaspecific period (audit andclearance of
accounts ),
.specific inquiries ,
.selective checks ;
-checks carried out bynational authorities atthe request ofthe
Commission and inwhich Commission officials maytake part (third sub­
paragraph ofArticle 9(2 )ofRegulation (EEC)No729/70andArticle 6
ofRegulation (EEC)No283/72).
(b)asregards theresponsibility forthevarious checks carried outby
Commission officials ,verifications made atthetime ofthevalidation
ofexpenditure (specific items orrelating toaspecific period )in
connection with the audit andclearance ofaccounts aretheresponsibility

-38-
oftheauthorizing department .TheCommission hasgivenresponsibility
forspecialinquiries totheauthorizing department andforselective
checkstoFinancial Controlwithoutgivingeitherofthesetwodepart­
mentsanexclusive verification role.
TheCommission 'sDirectorates-General forAgriculture andFinancial
Controlworktogether incarrying outthesechecksandthedepartment
takingchargedependsonwhichdepartment initiated themeasureand
whichhasstaffavailable forthepurpose.
(c)_Theobj_e_cti_ves ofthevariouskindsofverification differ.
-Controls inconnection withtheauditandclearance ofaccounts are
ofasystematic natureandareorganized bytheauthorizing depart­
ment.Depending onthenatureofthecheck,aprogramme isdrawnup
foreitheroneortwoconsecutive years.
-Specialinquiries areinitiated forspecific reasons,forexamplein
individual casesarisingwhereEA6GFfundsareatriskorinorder
toensurecorrectapplication ofCommonAgricultural Policy (CAP)
provisions whichhavefinancial implications .
Furthermore ,DGVIasthedepartment responsible formanaging the
CAPundertakes information visitstoensurethattheCommunity pro­
visionsarecorrectly applied andthatCommunity finances areprop­
erlymanaged.Thesevisitsarepartoftheday-to-daymanagement
oftheCAPanditsfinancing .
-Generally,theselective checkscoveralltheMemberStatesandare
directed towardsproblems encountered inaspecific sectororfield.
-National controls undertaken attheCommission 'srequestare:
.either,inagreement withtheMemberStateconcerned,verifications
orinquiries relating tonationally effected operations financed by
theEAGGF,inwhichtheCommission officials mayparticipate if
theywish;
.oradministrative inquiries,inwhichCommission officials maypar­
ticipate,initiated bythecompetent authorities ofaMemberState
whentheCommission sorequests onthegroundsthatitconsiders
thatirregularities ornegligence haveoccurred .
.Thelasttypeofinquiryisdescribed inmoredetailunderTitle7
"Irregularities ,Guarantee Section"(7.1.5.).Thecontrols madeat
theCommission 'srequestreferredtointhefirstindentandin
respectofwhichinquiries areinprogress canbesummarized as
follows :

-39-
-Community aidtoorganizations offruitandvegetable producers in
twoMemberStates;thefunctioning oftheseorganizations hasnot
alwaysbeensatisfactory ;
-thefinaldestination ofexportsofsugartoathirdcountry;one
MemberStatehasbeenaskedtoundertake aninquirytoestablish
•whethertheplaceofdelivery indicated wasinfactcorrect.
6.2.Inspection visitsinconnection withtheannualauditandclearance
ofaccounts
Inspection visitsinconnection withtheauditandclearance ofaccounts
aredealtwithinTitleIV.Theywereconcerned mainlywiththecheck­
ingoftheaccounts for1974and1975.In1978theyrepresented atotal
of273days'work,194bytheEAGGFstaff,10bystaffofotherdepart­
mentsoftheDirectorate-General forAgriculture and69byFinancial
Controlstaff.

-40-
6.3.Specialinquiries andinformation visits -
ThestaffoftheEAGGFandthedepartments responsible foragricultural
marketsintheDirectorate-General forAgriculture spentatotalof103
daysin1978onspecialinquiries andinformation visits,including the
dayswhenCommission officials tookpartininquiries undertaken atthe
requestoftheCommission bythenational departments (see6.1.2.d).
Participation byFinancial Controlintheseoperations represented 15
days1work/bringingthetotalofworkingdaysspentincheckingthis
sectorofactivity to118days.
Theseinquiries andinformation visitsrelatedtoeightdifferent sub­
jects:
(a)Butteratreducedpricesforuseinindustry (confectionery ,past­
riesandices
Twelvedayswereusedtopursuetheinquirystartedin1977on
intra-Community tradeinbuttersoldatreducedpricesforthemanu­
factureofconfectionery ,pastries andices.
Theinquirycontinued withinspection visitsinGermanyandDenmark.
Adocument summarizing theresultsoftheinspections undertaken in
several MemberStatesin1977and1978wassubmitted tothe'"EAGGF
Irregularities "GroupinJanuary1978withaviewtodeciding what
actionneededtobetaken,inparticular withregardtorecoveries
bytheEAGGF.(Seealso7.1.6.)
Theoutcome wasaclaimforaboutFB30million andHFL2.6million
representing securities forfeited forfailuretoprovethefinal
destination ofthebutter.Workiscontinuing concerning butter
forwhichsecurities werereleased onthebasisofcontrolcopies
wronglyendorsed bythecustomsserviceofaMemberState.
(b)Functioning offruitandvegetable producer organizations
Fortydayswerespentincollecting information onthefunctioning
oforganizations offruitandvegetable producers inthreeMember
States.Information hadreachedtheCommission thatcertainfruit
andvegetable producerorganizations whichwererecognized inthe
MemberStatesunderRegulation (EEC)No1035/72werenotapplyingcorrectly
theCommunity rulesontheconcentration ofsupplies frommemberpro­
ducersandthemarketing ofproduction withtheobjectofregulating
markets.

-41-
TheresultsofthesevisitsledtheCommission toinitiate aninquiry,
underArticle9(2)ofRegulation (EEC)No729/70,withregardtotwo
MemberStates.Forthepurposeoftheseinquiriesitwasrequested
thattheCommission staffbepermitted tojointhenational teamsres­
ponsible fortheverifications .
Ninedaysweretakenupinparticipation byCommission officials in
thisinquiry bythenational departments ofaMemberState.Their
programme ofworkisincourseoffulfilment andafinalreportwill
bedrafted onthebasisofthereportssubmitted bytheMemberStates
concerned .
(c)Suspected exportsofsugarnoteligible forrefunds
Sevendayswerespentinchecking howlicencesforexportofsugarto
non-member countries werebeingused.Suspicion ofirregularities led
Commission stafftoverifythatexportrefunds hadnotbeengranted
forexportsofsugarwhichwerenotbyreasonoftheapplication of
Regulation (EEC)No2645/70(asamended byRegulation (EEC)No458/73)
entitled tothem.Theseverifications havenotyetbeencompleted .
(d)Possible irregularities andotheranomalies withregardtointervention
buying-in ofoliveoil
Fourteen daysweretakenupinexamining inaMemberStatethecon­
ditionspertaining tothebuyingintointervention of4000tonnesof
lampanteoliveoilwhichoperators subsequently objected towhenitwas
soldbytheintervention agencybecauseofitspoorquality.Samples
weretakenwhichweresubsequently analysed byspecialized laboratories .
Theresultsoftheseanalyses enabledtheEAGGFtodecidewhatshould
bedonefromthefinancial standpoint andwhatmeasures wereneededto
recovertheamountsundulypaid.
TheEAGGFstaffalsospentthreedaysexamining oliveoilfromthe
1976/77and1977/78marketing yearsstillstoredbyoneintervention
agency.Itwasnecessary todowngrade certainlotsofoilbecauseof
thelengthoftimeinstorage,andthiswas,done.

-42-
(e)Incident wi"hfinancial consequences concerning thebuying-in ofbeef
OneLotof2000tonnesoffrozenmeatboughtintointervention as
steers("Vitelloni")wasobjected tobypurchasers takingpartinten­
deringprocedures openedbytheintervention agencyinoneMember
State,sincethemeatofferedforsaleseemedtobe"cowmeat".After
aninspection (fourdays)theEAGGFrefused Community financing and
requested theMemberStatetocredittheEAGGFaccount withtheamount
paidforthebought-in meat.
(f)Transfer toItalyofintervention cereals fromotherMemberStates
Eightdaysweredevotedtotheverification oftheconditions under
whichintervention cerealshadbeentransferred fromGermany,Belgium,
FranceandtheNetherlands toItalyin1976and1977withparticular
reference tothedeterioration inqualityofcertainofthequantities
transferred ;adeterioration whichhadoccurred inItaly.
Thisinquiryhasnotyetbeencompleted,buttheresultssofarseem
toconfirmthefairness ofthefinancial measures takenbythe
Community withregardtothesaleofdeteriori atedcereals.Thein­
quiryalsoprovided otherusefulinformation ontheimplementation of
similar Community measures .
Cg)Examination indetailofcasesofirregularities discovered bya
MemberState
Sixdays'worklocallywereneededtocollectsufficient information
on17casesofirregularities notified inconnection withRegulation
(EEC)No283/72,sothattheycouldbeincluded intheEAGGF
"Compendium ofIrregularities ".

_A3-
6.4.Selective checks
In1978sixtyworkingdayswerespentonselective checksbyFinancial
ControlandthirtydaysbytheDirectorate-General forAgriculture .
6.4.1.Checks_oji£rivate .storage
Selective checkswerecarried outatthenational intervention offices
andatvariousstoragedepotsinordertoascertain thattheobligations
laiddownintherelevant Community Regulations werebeingrespected .
TheCommission askedtheDirectorate-General forFinancial Control,in
agreement withDGAgriculture ,tosendalettertotheMemberStates
commenting onmattersarisingfromthesechecks.Thesecommentsrelated
mainlytotheimpossibility ofidentifying individual lotsduringthe
storageperiod.Thechecksalsoemphasized theneedtointensify certain
national controls ratherthantore-think thewholesystem.Atthesame
timethechecksenabledtheDGVIstafftodrawconclusions whichthey
willbearinmindinframingfutureCommunity regulations .
6.4.2._Sel.e£t_]_Y£ checks _re_l_at_i£g_t£ ^!c£s
Thesechecks,whicharestillinprogress,werecarriedoutatthevari­
ousintervention offices andatseveral customsoffices andconcern :
(a)theconsistency ofnational administrative practices withCommunity
Regulations andtheguarantees whichtheyprovidewithregardto
thetotalamounttobelevied;
(b)thenatureandvalidity ofthesupporting documents required for
paymentoftheMCAs;
(c)theconditions underwhichtheprocedures referred toaboveareim­
plemented andverified;
(d)thephysical checksundertaken bythenational departments topre­
ventirregularities detrimental totheEAGGF;
(e)thedivision ofresponsibilities betweenthecustomsservices and
thepayingagencies .

-44-
Theresults oftheinitialvisitsshowedthat:
-theseparation ofresponsibilities betweenpayingagencies andcustoms
departments presents controlproblems ;
-thechecking ofcustomsdocuments usedassupporting documents forpay­
mentsneedstobeimproved ;
-internal checksatoneintervention officeneedtobeimproved .
6.4.3._SeJ1e_ct_i_v_e _checks_in __cert_ain_se_ctors
(a)_Win_e
Thecheckrequested bytheFrenchauthorities concerning aidfor
voluntary distillation ofwinewasafollow-up tothecheckcarried
outon20-24June1977.
Thischeckrevealed imperfections inthesystemofreceipts forthe
releaseofsecurity (acquits acaution )usedincalculating the
amountoftheaidandthesehavebeenpointedouttothedepartments
concerned .
(b)_Sa_le_sof_bee_f _in_It_a_ly_a_t _reduced£rj_ces
Acheckwasmadeonthetransfer of40000toffrozenintervention
beeftoItalywhichledtocertainconclusions beingdrawnonthe
commercial andcontrolaspectsofthisoperation .

-45-
7.Irregularities ,Guarantee Section
17.1._Irr£l_ernen_t_a_ti_on_o_f^ouncUjte£ul_a_tion_(_EE_C)_N£ .283/72
Regulation (EEC)No283/72themechanisms ofwhichweredescribed indetail
inthe1972Report (SecondFinancial Report,Article6.1),laysdowncertain
rulesontheimplementation ofArticle 8ofCouncilRegulation (EEC)No
2729/70whichstipulates thatMemberStatesmusttakethenecessary measures
to:
-ensurethattransactions financed bytheFundareactually carriedoutand
areexecuted correctly,
-prevent anddealwithirregularities ,
-recover sumslostasaresultofirregularities ornegligence ,
andinformtheCommission ofthemeasures takenandtheprogress ofadmin­
istrative andlegalproceedings .
TheEAGGFhasalwaysattached greatimportance totheapplication of
Regulation 283/72asameansofimproving cooperation withtheauthorities
oftheMemberStatesincombating irregularities .
Thereportssubmitted bytheSpecialCommittee ofInquiryhaveemphasized
theimportance ofthemeanswhichthisRegulation provides .
7.1.2._Co^nmuni_c_at20ji £f_tjie_p_rojj /i_si£ns _la_id_dowji bylaw,regulation or
jidjnim_stra_t_i v.e_a^t_i_oj2 .and_a_li_st_ojf ^t_hedepartments andagencies
_re_sp£nsi_bl_e _fo_£_^heprevention _anc[£r£secutj_qn ^f_i_rr^gjjl_ar_i_t_^ej ;
JArtj_cle_2 _).
Asinprevious years,becauseofmoreurgentworkinthecampaign against
irregularities ,therewaslittleopportunity in1978tofollowupthe
analysis ofthecommunications thathavebeensenttotheCommission by
MemberStatesin1973andsubsequently ,important thoughthisis.
OJNoL36of10Feb1972p1
20JNoL94of28April1970p13

46-
However,thestudyofoneMemberState'sprovisions inconnection withone
particular aspectofapplication ledtheCommission 'slegalservicetocon­
siderwhetheritmightpossibly benecessary toreactivate theprocedure
provided forinArticle 169oftheTreatywhichhasbeentemporarily sus­
pended.
7.1.3.C_ornmun_i_cat_i_on_b _^rtember_St_a_t_es £f_i_rregul^ri_ti_e_£ _(_A_rt_i_cl_e£ Z_and5)
Itappearstobenecessary toreviewthewaysinwhichtheseArticles are
beingappliedinordertostandardize themwherenecessary .
Differences intheprocedures adoptedinMemberStatescouldbethecause
ofthediscrepancies whichhavebeennoticedinthenumberofirregular­
itiescommunicated totheCommission .
7.1.A.^o^mun_i_c_at_i_o_n ^f_i_rreg_uIJ.rjt_i_es y_t£Jna_ve_ijwm?d_i_a_t e_e_ffec_t_in
ot_he_r _Member_S_t_at_es _and_of_ne^w_f_ra_ud_uL_en_t£rac£i_cejs J.Art_i_c_le_4 _)_
Attherestricted meetingofthe"EAGGFIrregularities "Groupon17April
1978agreement wasreachedontheprocedure forsendingoutandnumbering
rapidcommunications underArticle 4ofRegulation 283/72.TheMember
StatesandtheCommission havemadeuseofthissystemon21occasions .
Themattersinvolved allsevenareasofcommonmarketorganization
namelybeefmeat,pigmeat,eggs,dairyproducts,cereals,fruitandveget­
ablesandfisheries .
Asinprevious years,thedairysectorremainsthemostimportant,by
reasonofthenumberofdifferent measures inthissector,andthehigh
levelofexpenditure .
Theactiontobetakenonthesecommunications isalsonowdiscussed at
restricted sessions,therebypermitting veryusefulexchanges ofviews.
Thecasesaresummarized below.
Thoseofthemwhichbecamethesubjectofprimaryadministrative or
judicialfindings gaverisetocommunications underArticle 3ofRegulation
No283/72.
Othercasesconsistofthedetection ofattempted irregularities orsus­
pectedirregularities .

-47-
7.1.5._Ini_t_T_at_i£n_o_f administrative J_n£uj_rj_es _at_t_he_r^que_st_of __the
^ojnmi_s_si£n_(_Ar_ti_cL_e ££f_R£gjjL_at_i_on 283/72)
Threeinquiries werelaunched in1978,intheoilsandfatssector,into
intervention measures inthedairyproducts sector,andintoimportand
exportbetween twoMemberStatesofaproduct madefromconcentrated
butter.Twoinquiries havenotyetbeencompleted ;foronethefacts
established leadtotheconclusion thattherehasbeennoirregularity
tothedetriment oftheFund.
Furthermore ,beforestarting aformalinquiryunderArticle 6of
Regulation 283/72theCommission staffhave,inthecasesreferred to
below,adoptedtheso-called "pre-6"procedure whichconsists ofasking
MemberStatesforinformation onpossibleirregularities orattempts .
Information received todateinthiscontext,(withoneexception which
hasbeenthesubjectofanArticle 4communication toallMemberStates)
hasallowedonetoconclude thattherehavebeennomanifest irregular­
ities.
7.1.6._Cojwenj_n£ of_inf£nnat_i£n_m£et_ing_s _to_a_ss_i_s_t JMentoer_St_ate_s
(_Artij:Ie7(3))
Fourmeetings ofthe"EAGGFIrregularities "Grouptookplacein1978.
Theybroughttogether mainlynationalofficials responsible forinvest­
igatingandprosecuting irregularities .Following thediscovery in1977
ofmajorirregularities involving aseniorofficial ofaCommunity pay­
ingagency,theMemberStateshavebeenrequested togiveinformation on
thewayinwhichthedocuments required forthegranting ofCommunity
refundsandamountsareprocessed bythepayingagencies .Adocument
summarizing alltheprocedures employed hasbeendrawnupbytheCommission
stafffortheirownandMemberStates'information .

-48-
Threerestricted sessions wereheld,whichpermitted theconfidential
exchange oftechnical information tobeheldonthemostrecentirreg­
ularities communicated underthetermsofArticle 4Regulation No283/72
(seealso7.1.4.).
Afourthmeeting washeldtoexamine aworkingpaperonirregularities
andcontrols inconnection withtheapplication ofRegulations (EEC)
Nos1259/72and232/75onthesaleofbutteratreducedpricesforthe
manufacture ofpastryproducts andices.
Itshouldbenotedthatinadditionthreemeetings ofadhocgroupswereheld,
considering theparticular problemsarisinginconnection withrecovery
fromthefirmsinvolved inthesupplyofbutteroil asfoodaid,andin
thepurchase ofbutterforthemanufacture ofpastrygoodsandicesbut
diverted fromthatenduse.
7.1.7.£θ8δ_ϊ_ΐ3ΐβ_1^θ£-Ιιο1^β ^ιηΟοΐίΐηιυηιΐν ΙβςίδίΒίιοη (Ατιί_οΙβ7^4))
Twocommunications havebeenreceived underthisArticle.Oneconcerns
Community transitofagricultural produce.TheCommunity Transit
Committee isexamining possible solutions totheproblem.Thesecond
concerns aproblemoftariffclassification .
Threecommunications pursuant toArticle 4ofRegulation No283/72also
prompted theCommission services tostudywhethertheCommunity rules
didnotcontainlacunae (fisheries sector,exportrefunds,systemof
MCAs).
7.1.8._Cojnmuni_c^tJ_oj2s_in ^£e£pec_t _of_i_rr£g_ul.£rjt_i_e£ _co_nc_erjnijig_l_es ^.than
000 i_cl_eV\)
MemberStateshavebeenrequested tocommunicate thenumberofcasesof
irregularities brokendownintosectors,detected between 1July1977and
1July1978whichconcern sumsoflessthan1000u.a.sothatareview
canbecarriedoutofthewholeirregularities situation overaspecific
periodandsothatananswercanbegiventoaquestion putinthe
European Parliament .

-49-
Theanswersreceived uptonowdonotprovide anyparticularly interesting
information (for7MemberStates;10180EUA).
7.1.9.£ojnmjjni_t£ measuresrelating _to_the_t_ra_i_nin£ janjdb.He_fijng_o_f _EAGG_F
^nspec_tors (Article7(3)ofRegulation No283/72)
Article 315oftheGeneralBudgetoftheEuropean Communities (training of
officials responsible forthesupervision ofEAGGFexpenditure )hasen­
abledaseminartobeorganized atCommunity levelontheapplication of
CouncilDirective 77/435/EECof27June1977^.
Thepurpose wasmainlytostudyarrangements whichwouldfacilitate its
application (centralized documentation system,interdepartmental coordin­
ationoncontrols )andcertainothermatters (100000u.a.parameter,
saleofintervention products atreducedprices,secondcategoryinter­
ventionexpenditure ,mutualassistance asprovided forunderArticle 7).
TheseminartookplaceinBrussels on13,14and15December 1978.
Thecontributions intheformofpapersbyrepresentatives ofMember
States,provided instructive andcomparative information whichwasof
particular value.Allthesepapershavebeenassembled inasingledocu­
ment.
Conclusions wereformulated asregardsthepointswhichneededtobelooked
intoinmoredetailandthearrangements whichwouldfacilitate application
oftheDirective intheMemberStates.
7.2.The_çase_s£f_ijrreg_ularrt^
7.2.1.1978
Ofthe117casescommunicated ,20concerned dairyproducts,19beefand
veal,4cereals,4fisheries,4non-Annex IIproducts,2pigmeat,1wine,
1oilsandfats,1tobacco,1sugarand1foodaid.,
58casesconcerned monetary compensatory amounts and1caseaccession
compensatory amounts.
1
Onscrutiny byMemberStatesoftransactions formingpartofthesystem
offinancing bytheGuarantee SectionoftheEAGGF.

-50-
7.2.2.Exp_ort_re_funds_andcompensatory _amoun
Asregardsrefundsthesamefraudulent practices arestilloccurring :false
declarations (destination ,nature,quantity,quality,weight,tariffclass­
ification ).
Despitetightercontrols,particularly atthefrontier between twoMember
States,dishonest operatorsstillprofittoooftenfromfluctuations inex­
changeratesinthecaseofmonetary compensatory amounts.
7.2.3.J|1a£ket_intervention measures
In1978nonewfraudulent practices detrimental toCommunity fundshave
beendetected .
7.2.4._Fi_riaj2ci_a_L __ma^_ni_tjijd_e oftheirregularities detected _and_coj]nmuniCj3ted
underArticles 3and5(casesrelating toamountsabove 1000EUA)
In1978therewere117casesofirregularities ,amounting inallto3mEUA.
Thetablebelowshows,yearbyyear,thenumberofirregularities ,the
amounts involved andthesumsrecovered .
For1978AnnexGXVgivesthebreakdown ofthesecasesbyMemberStateand
bysector.
In1978,therewasadropinthenumberofcasescommunicated ,andthetotal
ofthefundsfellbyaproportionally greater amount.
Itshould,however,benotedthat1977wasayearinwhichseveralcases
involving extraordinarily largesumsweredetected .
Thefewercasescompared with1976and1977canbeexplained bytheimprove­
mentintheprocedure forcollecting MCAsinoneMemberState.Ofcourse
thecombinedeffortsofMemberStatesandtheCommission tocombatirregul­
arities mustalsobeexpected tohavebornefruit,butanycomplacency with
the1978resultwouldbeunwisesincedishonest operators willcontinue
theiractivities andourfiguresnecessarily onlyreflect aproportion of
actualcases.
Theattempted irregularities (18cases),whicharealwaysveryinteresting
tostudysothatotherattempts canbeforestalled ,arenotreflected in
thetablesbecausetheyhavenofinancial effect.

TableHo11
EAGGF,Amrartee-Cases ofirregularity -1971-1978.
andamountsrecoverad ''
ancrantsinEUÀ
□1971 1972 1973 197* 1975 1976 1977 1978-Total
rum
>er
of
;ajsesamountnum
ber
of
cas
esamount
*uun
bei
of
:as
!Samountrranj
>er
of
:&s
esamountnumi
(ber'
of
cas
es[
amountnuml
ber"
of
cas
es1
[ I
amount -1nul
"ber|
of
cas
es1 S
I
amount
: ]LumI
'ber
of
cas
esamount
iium
bei
of
;as.amount
•ases
'QïïîID
micî
ted8
i10986671202368976501498.605 904471836138m
3525333
–,* .23961350091529534426117i
2999.92681441520784
'of.
'whicK
treoo/Heredl71086694216967720
15
39680363691188,353 9915514671022426831612.1969445210399ri
L
.*4452091860;
Tosicplifythecomparison betweentheamountsforthevariousyearstheconversion intoEUAforallyearshas
beendoneonthebasisoftheaverageratesfor1978(SeeAnnexGII,3).

TABLE NO11A
tAbbF GUARANTEE CASES OFIRREGULARI IIhiiANDRECOVERIES
1971-1978
âwniIMJ5GivevI'IEUA
EH1971~ 197219731974 1975""11976 1977 11973 Itotalms~~
6 M 8397 15130312370MIl532452FnrI1558349
d"J][£fa397]■–^ijriry[•"5I3ÔILïffnftfL"["«m' "~7ï"555"m.<10,9648191596506530JI2240386_3963543I701954783j89I2.428.094j49|2387302|49j887859[W20775523'u.y10845090M965085|292222435438192sy-43556872
I|877.221LÂ2"ji009,961 \Ï7j681"166*I302j15418259I
DK- ->8496_7742026126597320 13447 418472 1726656011942426 ILJJ m8496J|368779|aj597320|U[3-447r»:I272706«f~68~838 521319586~
FR-51403591I-7984636-52313I84JraI203834I[517606JH 23081rr.187892475634124
-i 2635LiJ420295JJ[1158 1 !1275921L2]|12289| 1 r_4if32O67If18601241~
IRL_IL- LLI16227j1335211I2330.820 11936544IM!378550Iil2.645II2ÏI1999997IU ■ziU!LUr162271j|3352111|3308201r3|"465us]11I182355|[r~2645-rr332.3/6i
!"J AI2521067188652011925olI2|i2J81IM1162294I|ïl? 381554596
Ld LJ □LU[2273"LU 1r––Hl".. I-"1r "~12273~
L
NL4I21852
....hI3873[79900775503712]4776I9|927600] 706531.119210I
Lip21,852Li LiJ|3873]H|~99007j□|~55-03712j"~4776"]"7j~"1444l|3~7065-3bf~206,051~1
IIK 1I832! 425915912612230091 ]58|2704675]"31741802]2326-936.559
LkLzU|8321LdI ' 20j~1059866j~7l656962!
i1~248207~29]r1.965867J
|cfo810986671202,368976:5014986059°'..471836[l38!h§25333|239I6135009I152I953442ô|~ÏÏ7|299992381441520784
LLjl0,B6g9420!967720|I9I'~68Ô363[69'ΐ1£3~353"lEfl4673"24263311
i6l1"219C9TL113"l~039988J"44520918~608~I
Notes:UDoerline:totalnumberofcasescommunicated andamount^Qf ^oney "involved.
Lowerline:number'of caseswhentherehasbeenarecovery^'nd amountofmoneyinvolved.
InGermany,154casesofirregularities communicated betweenApril1971andJuly1976(themajoritybeingin1975-1976 )relatedtoasinglespecial:intervention measure (69/287/EBC)•uhichappliedfrom5Augustto1Oct1969.IntheUnitedKin^Jom
I'mproveT°firre9ularttiesconcernnon-payment ofMCAsratingfromaweaknessinthecollectionsystemuhichha--nuteenj,
PO
*I

-53-
7,3.TheSpecalCommittee ofInquiry (SCI)
A^tertheCommission 'sdecision on5March1975toextenditstermsof
reference,theSpecialCommittee ofInquirychosethebeefandveal,and
winesectorsasthefirstpriority initsinvestigations becauseofthe
considerable increase inintervention expenditure inthesesectors.
Thereportonthewinesector(DocXX/6/78),transmitted bytheCommission
totheCouncil,theEuropean Parliament andtheCourtofAuditors on1
February 1978recommended thatprivatestorageaidbereviewed and
studiedtheproblemofsanctions inconnection withCommunity rules.
TheCommittee willthenturnitsattention tothecerealssector.
Inspection visitswereorganized toFrance,theFederalRepublic ofGermany,
ItalyandtheNetherlands toenableMembersoftheCommittee toseehow
Community provisions areappliedinpractice .Workonthecerealssector
willbeconcluded during1979.

-54-
TITLEIV
AUDITANDCLEARANCE -ANDCLOSURE OFACCOUNTS
8.1.Characteristics
Thefollowing activities marked1978withregardtotheauditand
clearance ofaccounts :
-theclearing operation foraccounting periodspriorto1January
1971wascompleted on27September 1978;
-submissions inthecasespendingbeforetheCourtofJusticere­
latingtotheauditandclearance ofaccounts for1971and1972
wereconcluded :thejudgments weredelivered atthebeginning of
1979;
-consequently ,theworkontheauditandclearance ofthe1973
accounts,whichtoalargeextentdepended onthejudgments in
question,couldbefinalized ;
-preparatory workontheauditandclearance oftheaccountsfor
1974and1975wascontinued ;
-finally,targets werefixedtoaidnational administrations and
theEAGGFinadhering morecloselyinfuturetothetimetable for
lodgingdeclarations andadopting theclearance decisions laid
downbytheRegulations .
8.2.Periodspriorto1January 1971
Theadoption bytheCouncilofanadhocFinancial Regulation on6
June1978enabledtheCommission toorganize themovements offunds
neededforthesettlement ,byaclearing operation ,oftheaccounts
fortheaccounting periods 1967/68to1970.Afterreceiptofthe
balances owingbyBelgium,theFederalRepublic ofGermany,Italy
andLuxembourg theclearing operation wascompleted on27September
1978bythepaymenttoFranceandtheNetherlands ofthecredit
balances duetothem.Theaccounts fortheseperiods weretherefore
finallyclosed.

-55-
8.3.Tie1971and1972accounts havehadtobereviewed intheLightofthe
judgments bytheCourtofJustice,firstfollowing CaseNo47/75
andt!eninconnection withthejudgments inCasesNos11,15,16
an!18/76.
8.3.1.CaseNo
Duringthefinancial years1971/72secondary transport operations
involving cereals werecarriedoutinGermany,intheonecasebe­
causeofthetermination ofstorageleasesandintheotherfollow­
ingdamage.AtthetimetheCommission didnotconsider these
reasonssufficient forittoacceptthenecessity oftheseoperations
withinthemeaningofArticle 4(1)(g)ofRegulation 787/69,arguing
.thatthesewerenormalmanagement operations .TheFederalRepublic
ofGermanytherefore brought anactionbeforetheCourtofJustice
(Case47/75).Meanwhile,intheabsenceofanydecision astothe
necessity ofthesetransport operations theEAGGFrejected theexpend­
itureinquestion inthedecisions ontheclearance oftheaccounts
for1971and1972on2December 1975.
On4May1976theCourt-ofJusticeannulled theCommission 'sDecision
ononeofthetwotransport operations ,thatoccasioned bytheterm­
inationofleases.Following thisjudgment theCommission inits
r>ecis-ion of29June1978accepted thenecessity ofthesetransport
operations withinthemeaningofArticle 4(1)(g)ofRegulation No
787/69whichautomatically brought themwithinthescopeofCommunity
financing .Thecorresponding expenditure amountstoDM307833.The
Decisions of2December 1975concerning theclearance oftheaccounts
presented bytheFederalRepublic ofGermany weretherefore amended
1byaCommission Decision dated28July1978.
0JNoL238of30Aug1978p25

-56-
8.3.2._Caj>e_s_No_s111516and18/76
TheCourtofJusticeinitsjudgments of7February 1979incasesNos
11,15,16and18/76firstfoundagainsttheMemberStatesinsixout
ofthesevenactionsbroughtagainsttheCommission foritsrefusal
tofinancecertainexpenditure declared inthe1971and72accounts
andalsosupported theCommission inthepositionithadadoptedon
theso-called question ofprinciple (see8.3.1.).
Fromthefinancial pointofviewtheresultofthejudgment wasthat
theDecisions concerning theclearance ofthe"P71and1972accounts
fortheFederalRepublic ofGermanywerepartially annulled since
amountsofaboutDM17.9millionandDM12.1miIlion'respectively had
notbeenaccepted forfinancing bytheEA6GF.Thesewereamounts
paidbytheGermanauthorities asaidforbutterpurchases byrecipi­
entsofsocialsecurityassistance .
Asregardsthequestion ofprinciple,thejudgments referred toabove
willbethesubjectofadetailed analysis whichisnotwithinthe
scopeofthisreport.However,theanswersprovided bytheCourtwith
regardtothequestion ofprinciple raisedinconnection withCases11
and18/76andwithregardtotheconceptofthe"supporting document "
inherenttoCase15/76shouldbedescribed brieflysincethepositions
adoptedaffectboththegeneralapproach withregardtotheauditand
clearance ofaccounts forthefollowing financial yearsandalsothe
solutions arrivedatincertaincasesindispute.
8.3.2.1._Thejjuest_ion_of £rinci£l£
Insimpleterms,theapplicants (GermanyandtheNetherlands )con­
testedtheCommission 'srighttooppose,atthetimeoftheauditand
clearance ofaccounts,thefinancing bytheCommunity ofcertainex­
penditure paidbytheMemberStates,seeingthatArticle 8(2)of
Regulation (EEC)No729/70statesthatthefinancial consequences of
irregularities ornegligence aretobebornebytheCommunity "with
theexception oftheconsequences ofirregularities ornegligence
attributable totheadministrative authorities orotherbodiesofthe
MemberStates".Theinterpretation ofthisprovision wasamatternot
fortheCommission butfortheCouncil inaccordance withastatement
included intheCouncilminutesinconnection withtheadoption of
Regulation (EEC)No283/72.

-57-
*OnthesematterstheCourtruledthat:
(a)Theprovisions ofArticle 8ofRegulation No729/70arenotapplicable
totheoperations indispute.Casesofgenuineerror,basedona
faultyinterpretation ofCommunity lawadoptedingoodfaithbythe
nationalauthorities ,cannotbecovered byArticle 8butshouldon
theotherhandbeassessed inthelightofthegeneralprovisions of
Articles 2and3ofthesameRegulation whichonlyallowthe
Commission tochargetotheEAGGFamountsexpended inconformity with
Community rulesandtoleaveanyotheramountexpended tobeborneby
theMemberStates,andinparticular anyamountswhichthenational
authorities wronglyconsidered thattheywereauthorized topay.The
sameconclusion emergesfromanargument basedonthepurposeof
Regulation No729/70(groundsofjudgments Nos6to9).
(b)TheCouncilstatement referredtobytheapplicants hadbeenadopted
inconnection withRegulation No283/72itselfadoptedpursuant to
Article 8ofRegulation No729/70,sothatitsscopeistherefore
limitedtothefinancial consequences oftheirregularities andneg-
ligences covered bythatArticlewhichisnotrelevant inthisin­
stance.Asnospecific procedure islaiddownbyCommunity lawto
resolvedifferences arisingbetweentheCommunity andtheMember
States,theargument derivedfromtheallegedfailuretoobservethe
procedures laiddowncannotbeaccepted (groundsofjudgments Nos11
to13).
8.3.2.2.Thejco_nc_ept _of_the_sup£0£t_in£ document
In1971partoftheaidpaidforskimmedmilkpowderdenatured inItaly
wasexcluded fromCommunity financing duetotheinsufficiency ofthe
proofjustifying paymentoftheaidinFrance.Thepossibility envis­
agedbytheMemberStateofsupplementing orcorrecting supporting docu­
mentsfoundtobedefective atthetimewhentheyarechecked wasnot
accepted bytheCommission bothforreasonsofprinciple andforspec­
ificreasonsonwhichtheCourtpronounced inconnection withCaseNo
15/76.
Thesetwoquotations havehadtoberendered infreetranslation in
English,sincetheEnglishtextofthejudgment oftheCourtisnot
yetavailable .

-58-
FortheCommission itisinherent intheconceptofadocument support­
inganactofpublicexpenditure thatthismusthavebeencapableof
justifying theexpenditure atthetimewhenitwasusedasthebasis
fortheexpenditure made.Aswithanyvoucherofthistype,eitherit
canjustifytheitemofexpenditure inquestion oritcannot.The
auditandclearance ofaccounts andthecheckswhichthisprocessin­
volvesmustbeseenastheverification ofmanagement operations which
arecompleted andfinal;otherwise theyaredevoidofallmeaning.
Therecanbenoquestion oftheauditandclearance ofaccounts being
anopportunity forreopening examination ofthefileoneachindividual
operation asthiswouldcreateasituation wherethereisapermanent
lackofcertainty astothelawandwouldalsoforcetheCommission to
takeoverortoduplicate theworkalreadydonebynationalauthorities
inassessing thesecases.Alsotheremustbeseriousdoubtsastothe
practical possibility ofarriving atacorrectdecision solongafter
theoperations inquestion .
*TheCourt'srulingonthisquestion wasasfollows :
-thatasregardsthepertinence ofasubsequent regularization ,incon­
nectionwithanapplication forannulment pursuant toArticle 173of
theTreaty,thelegality oftheactcontested mustbeassessed onthe
basisofthedefactoanddejuresituation whichexistedatthetime
oftheact.Anyregularization subsequent tothatdateshouldnotbe
takenintoconsideration forthepurposes ofsuchanassessment
(groundsofjudgments Nos7and8);
-incaseswhereCommunity rulesonlyauthorize paymentofanaidon
thecondition thatcertainformalities withregardtoproofareob­
servedatthetimewhenthepaymentismade,aidpaidoutwithout
regardtothiscondition isnotinconformity withCommunity lawand
theexpenditure relating toitcannottherefore,inprinciple,be
bornebytheEAGGFintheauditandclearance ofaccounts forthe
financial yearinquestion withoutprejudicing theCommission 's
right,whereappropriate ,totakeaccount,duringalatefinancial
year,ofthesubsequent production oftheproofrequired (groundsof
judgment No10).
*Thesetwoquotations havehadtoberenderedinfreetranslation in
English,sincetheEnglishtextofthejudgment oftheCourtisnot
yetavailable .

-59-
8.4.1973accounts
Duringthepreparation ,inthecourseof1978,ofthereportsummariz­
ingtheconclusions reachedintheworkontheauditandclearance of
theaccountsforthe1973financial year,itbecameincreasingly clear
thatitwasinadvisable toputforwardfinalsolutions toseveraldis­
putedmattersarisinguntiltheCourtofJusticehaddelivered its
judgments onthecasesbeforeitinconnection withtheclearance of
the1971-1972 accounts,therebeingananalogywiththosecasesin
severalofthequestions raisedandtherebeingalsothecontinuing
question ofprinciple .
Itwastherefore preferable todeferthefinalstagesofworkonthese
accounts untilthefirsthalfof1979soastobeabletotakeaccount
oftheposition oftheCourt.
8.5.1974and1975accounts
Inspection visitsinconnection withthe1974and1975financial years
beganinNovember 1977andcontinued in1978.Theyaccounted for270
daysofverifications ofwhich194werebyEAGGFstaff,10byother
staffoftheDirectorate-General forAgriculture and66byFinancial
Controlinvolving about20visitsto24different payingagencies .
Thispreparatory workshouldfinishduringthefirsthalfof1979and
enabletheCommission totakeitsdecisions onclearance bytheendof
thisyearorthebeginning of1980.
8.6.Accounts forsubsequent financial years
8.6.1.Itshouldbepossible forthedocumentary verifications andin­
spectionvisitsrelating tothe1976and1977financial yearstobe
startedforbothyearstogether inautumn1979afterthepreparatory
workonthetwoprevious financial yearshasbeenfinished .
8.6.2.Asregardsthepresentation ofthestatements forthesetwo
financial years,the1976accounts wereallreceived bymid1978and
the1977accounts betweenSeptember 1978andMay1979asshowninthe
following table.

-60-
TABLE NO12
Datesofdispatchofdeclarations forthepurpose |
MemberState Ioftheauditandclearanceof1977accounts
Firstcommunication Finalcommunication
Belgium 13Oct1978 17Nov1978(complete )
Denmark 19Sept1978(complété )
Germany 26Sept1978 |11Dec1978(complété )
France 20Feb1979(complete )I
Ireland endMay1979(incomplete )
Italy 31Jan1979(incomplete )
Luxembourg 17Oct1978(complete )
Netherlands 31Oct1978 26Mar1979(complété )
UnitedKingdom 08Mar1979(incomplete )
ItisrecalledthatatthemeetingoftheEAGGFCommittee on27June
1978,theMemberStateswereaskedtopresenttheirdeclarations by1
October 1978.Theabovetableshowsthatthisdeadline wasmetby
onlyoneMemberState.Although thesedelaysshouldnotaffectthe
nextroundofverifications (relatingtothe1976and1977financial
years),itshouldbeemphasized thattherepetition ofthesedelays
in1980wouldseriously impedethefurtherreduction ofthebacklog
duringthefollowing roundofverifications (forthe1978and1979
financial years).
8.6.3.Withaviewtopreventing thesedelaysfrompersisting andto
facilitating theworkofthenationaladministrations ,thevarious
aide-memoirfcs onthedatatobeforwarded totheCommission verscon­
solidated intoasingledocument whichcanbekeptuptodateusing
loose-leaf sheets.Thissimplification ,together withcertainadjust­
mentsmadeinthelightofexperience totheorganization andmethods
employed invarious MemberStates,shouldhelptospeeduptheworkon
theannualdeclarations .

-61-
8.6.4.Moreover,theprocedure oflinkingverifications fortwofinancial
yearsandtheuseofmoreselective methodsofverification shouldalso
contribute ,failingthehoped-for increase instaff,totheprocessof
makinggoodthebacklogofaccounts.Finally,implementation ofimproved
consultation procedures (DocVI/241/REV1of3February 1978)andthe
important precedents established asregardstheauditandclearance of
accounts bytherecentjudgments oftheCourtshouldhelptoreducethe
numberofdisputed casesandthetimeneededtoresolvethem.

-62-
TITLE V
FINANCING OFCOMMUNITY FOODAIDFORPRODUCTS SUBJECT TOCOMMON MARKET
ORGANIZATION
9.Community foodaidintheformofproducts covered byacommon
marketorganization isfinanced underthesamerulesasthose
applyingtotheGuarantee SectionoftheEAGGF.Thus,since1
January 1978,introduction oftheEUAintobudgetaccounting
hasledtotheapplication ofasystembasedonthechoiceof
amonthly EUAratewhichisvalidbothforpaymentofthemonthly
advances andforthecharging oftheexpenditure declared each
monthbytheMemberStates.
9.1._Ch_ar_ac_t_e_ri_st_i_c_s £f_Commujni_ty_foo_d _ai_d
9.1.1.Implementation
2Implementation ofthesupplyagreements concluded bytheCommunity
withtherecipient countries ortheir-agenciescallsforamobiliz­
ationprocedure effected withintheframework ofthecommonmarket
organizations .Thisprocedure isimplemented bythenational in­
tervention agencies andisbasedontheprinciples ofthefreeplay
ofsupplyanddemand (tendering procedure).Inthecaseofurgent
deliveries ,however,privatecontracts areamoreefficient means
ofachieving rapidaction.
ΛFinancial Regulation of31December 1977-OJL356p1
2From14April1975theseagreements havebeenconcluded intheformof
anexchange ofletters. *

-63-
9.1.2._Financj_a^_and[_budg_et_ar ^__as£ect_s
Community foodaidexpenditure isfinanced fromthefollowing
appropriations :
(a)Chapter 92(Community foodaid)ofthebudgetwhichcovers
allfoodaidexpenditure withtheexception oftheamounts
forrefunds;
(b)Title6ofthebudget (Guarantee )against whicharecharged
theamountscorresponding torefundsaccording tosector
(cereals,dairyproducts,sugar).
Thefundsrequired bytheMemberStatesfromChapter 92arepro­
videdbyasystemofmonthly advances,similartothatforthe
Guarantee Section.
However,theseadvances arenolongerthesubjectofaprovisional
globalcommitment pursuant totheFinancial Regulation whichcame
1intoforceon1January 1978.
9.1.3._Chanç|e^J_n_t_he_rul es
.2Inconnection withaproposal onnewprocedures forthemanage­
mentoffoodaidtheCommission onceagainputbeforetheCouncil
aproposal toconsolidate allthefoodaidappropriations ina
singlechapterinordertosimplify thebudgetandmakeitmore
transparent (inclusion offoodaidrefundappropriations inChapter
92).Asimilarproposalhadnotbeenacceptedin1977^.
Thepreliminary workonaframework agreement oncerealfoodaid
willbecontinued in1979.
OJL356of31Dec1977p1
2DocC0M(78)204/2of16May1978
30JC228of24Sept1977p3

-64-
9.2.Thecashposition
9.2.1.j\dvances_
Themonthlyadvances whichwererequested bytheMemberStates.iand were
thesubjectofCommission decisions totalled 250301422.43 EUAforthe
1978financial year.
Abreakdown byMemberStateoftheadvances decidedupon,expenditure
incurred andthepercentage utilization ofadvancesisgiveninthefol­
lowingtable.
TableNo13:Breakdown andutilization ofmonthlyadvances
in1978
MemberStateDecisions onadvances
EUA1Expenditure as
at31.12.1978
EUA2Percentage
utiIization
BELGIUM 32193706.62
i26755903.59 83X
DENMARK j 4398239.87 41294.01 1X3
GERMANY 74740254.33 64594625.40 86%
FRANCE 72940136.42 71677616.45 98%
IRELAND 5906492.41 5522377.37 I94X
ITALY 32658724.50 30659006.89 94%
LUXEMBOURG i277104.94 |280763.66 100X
NETHERLANDS iI25486055.84 ||25826074.54 100X
UNITED KINGDOM 1700707.50
|1462923.5086X
TOTAL EEC!
|250301422.43226820585.41 91X
1Including thebalanceavailable on31December 1977asshowninthe
7thFinancial Report(financial year1977,page90,TableA.2)which
amounted to18818213.76u.a.or19873967.66 EUA(EUArateof11
November 1977).
^Expenditure declaredbytheMemberStates.
3ForDenmarkthelowutilization percentage of1Xisduetotheexten­
sionofthedatefortheimplementation (January,February 1979)of
certainaidmeasures forwhichtheMemberStatehadrequested andre­
ceivedadvances calculated onthebasisoftheperiodsoriginally
planned (November 1978).

-65-
Incomparing thesefigureswiththosefortheprevious yearaccount
mustbetakenofthechangeintheunitofaccount.
Whiletheadvances rosefromabout213million EUAtoabout250
million EUA,thepercentage utilized was,at91%,thesameas'for
1977.
9.2.2..Changes _in_the_c_as_h £0£it_|on
Annexes AIIandAIIIshowthecashposition on31December 1978.
Thefundsavailable,beforeadjustment andbrokendownbyMember
State,amountfortheCommunity to23480837.02 EUA(TableA.II
cold).
Theadvances notusedbytheMemberStateson31December 1978were
readjusted onthebasisoftheEUArateapplicable totheJanuary
1979advances (Table AIIcole).
Theseaccounting operations donotaffectthebalanceofthefood
aidaccounts keptinnational currencies bytheMemberStates.

-66-
9.3.Administration ofappropriations andpayments
9.3.1.Tota_l _ap£rop_ri_at_i_ojis_a\ /a_i_L_abl_e_ij2 .1978
Thefollowing appropriations areavailable :
-appropriations carriedforwardfrom1977becauseofdelaysinthe
implementation ofsomefoodaidprogrammes ;
-newappropriations inthe1978budget.
TableNo14;Appropriations available in1978
Cereals,dairyproducts
andsugarconventions ,
miscellaneous expenditure
1977budgetcarry-over
1978budget
Transfer toChapter 95132370019.66 EUA*
223710000.-EUA
-490000.-EUA
TOTAL 355590019.66 EUA
or123818213.23u.a.
9.3.2._P£ymenJ^s
(a)JEx£ej2dJ_ture declared £y_th_e_Member .States
TableNo13(p65)andAnnexIIIshowthedeclared expenditure of
MemberStates (226820585.41 EUA)whichwaseffected inthe
courseof1978againsttheadvances granted.
Thecharging oftheseamountsinthecourseofthefinancial year
doesnotofcourseprejudge thefinalaccounts astheyappearin
theCommission 'sclearance decision .
Thedifferences betweentheagreedadvances andtheexpenditure
constitute thebalances on31December 1978whichtheMember
Statesmayusefortheirexpenditure duringthe1979financial
yearandwhichtherefore correspond toanadvanceforthe1979
financial year.

-67-
Direetpa/mejits
Apartfromtheadvances madetotheintervention agencies ofthe
MemberStatestheCommission madeanumberofdirectpayments to
certainrecipient countries oragencies representing financial
contributions fortheforwarding anddistribution oftheproducts
supplied asfoodaid.
Thetotalofthesedirectpayments amountedto9159194.26 EUA.
Thefollowing tableshowsthebreakdown ofthisamountbyrecipi­
ent.
TableNo15:Directpayments
Beneficiary countryoragency Amounts inEUA
.Non-government organizations
(CARITAS,0XFAM) 2789369.26
U.N.R.W.A. 391970.-
W.F.P. 4034515.93
Bangladesh 1811990.35
Other^ 131348.72
9159194.26
1
MainlyIndia,Lesotho,Botswana,.

-68-
9.3.3.^£rop£i_at20jis_car£ied_f£r^aM_t£ _1_9_79_(_se£ Armex_A_1_)
ThenewFinancial Regulation applicable from1January1978hasnow
confirmedthe principle ofcommitting appropriations assoonaspro­
grammes havebeenadopted.
Itfollowsthattheappropriations committed in1978whichdidnot
resultinpayments bytheMemberStatesareautomatically carried
overto1979.Theamountinvolved was99980567.47 EUA,automatic­
allycarriedoverinaccordance withArticle 6(1)(c)ofthe
Financial Regulation .
Anamountof490000EUAwastransferred fromChapter 92(item9240)
toChapter 95.
Unusedappropriations totalling 19539672.52 EUAwereconceited .
9.4.Amountstoberecovered fromrecipient countries
Atthetimeoftheactualimplementation ofcertainfoodaidmeasures
thesuccessful tenderers sometimes hadtopaycertaincostsonbehalf
oftherecipient countrysoasnottoholdupshipment .Thesecosts,
whendeclared bytheMemberState,arethesubjectofarecovery pro­
cedurebytheCommission .Theamountwhichshouldinprinciple be
recovered forthe1978financial yearisabout980000EUA.
9.5.Closure oftheaccounts
9.5.1._VeH_fi_cat_ion_s
Eachfoodaidmeasureisthesubjectofastatement ofexpenditure
drawnupbytheintervention agencyconcerned according tothepro­
cedurelaiddownintheFinancial Regulations .
Onreceipt,thedocuments arethoroughly checkedagainsttheinform­
ationinthepossession oftheCommission inparticular regarding
intervention prices,tenderpricesandamountsofrefunds,etc.
Thisscrutinyisthenfollowed byinspection visitstothepaying
agencies .Eightdayswerespentonsuchvisits.
0JL356of31Dec1977p1

-69-
9.5.2._Audi_tand_clearancje_of_t_he_a_£c^u£t_s
Thedevelopment anddiversification offoodaidmeasures havemeant
extraworkfortheCommission staff.Theresult .hasbeenthattheaudit
andclearance ofaccounts hasproceeded moreslowly,andlittlework
couldbedonein1978ontheverification ofexpenditure inthe1975
financial year.

-70-
ANNEXES

-71-
LISTOFTABLES
GUARANTEE SECTION Page
GI Summaryofimplementation forthe1978
financial year 72
GII Exchangeratesusedfortheconversion of1978
r expenditure 73
GIla Exchangeratesforfinancial years1971to1977 74
GIII Exchangedifferences forthe1978financial
year 75
GIV Advances andfundsavailable inMemberStates
for1978 76
GV Advances andfundsavailable inMemberStates
(1978)milkpremiums 77
GVI Fundsavailable inMemberStatesfor1978
(excluding premiums ) 78
GVII Fundsavailable inMemberStatesfor1978milk
nonmarketing anddairyherdconversion
premiums 79
GVIII Expenditure chargedforthe1978financial year 80
GIX Breakdown ofintervention inrespectofstorage .
costs 90
GX Prbducts inpublicstorageat31Dec1978 91
GXI Expenditure bysector(1974to1978) 92
GXII Breakdown ofexpenditure byeconomic category 93
GXIII Overall costoftheGuarantee Section in
relation toGDP 95
GXIV Equalization ofstoragecostsforsugar 96
GXV Casesofirregularities reported in1978 97
FOODAID
AI Summaryofimplementation forthe1978
financial year 98
All Cashposition at31December 1978 99
AIII Expenditure declared 100
AIV Community financing (1972to1978) 101
AV Budgetappropriations .1978 103

ANNEX GI
SUMMARY OFIMPLEMENTATION FOR THE 1978 FINANCIAL YEAR
I APPROPRIATIONS mEUA IMPLEMENTATION mEUA XUTILIZATION
IA.APPROPRIATIONS FORTHEYEAR
8695.2
-16.0C.COMMITMENTS
8676.6
8648.8
27.8
2.699.8
0.2
1001.Initial appropriations
2.Transfer ^
Total1.Global commitments
-amounts specifically committed
-balance ofglobal commitments (released )
2.Amount not committed
Total8679.2
8679.2
B.APPROPRIATIONS FROM THE PREVIOUS YEAR
609.8
24.0
633.8D.PAYMENTS
605.8
24.0
4.0
633.8
8648.8
30.4
30.4
4.0
4.0£ 6.76
92.87
0.33
0.04-Automatic carryover from 1977
-Non-automatic carryover from 1977
Total1.Application ofcarryover from 1977
-Payments a)from automatic carryover
b)from non-automatic carryover
-lapsed
Total carryover from 1977
2.Application of1978 appropriations
a)Payments
b)Carryover to1979
.Appropriations unused :non-automatic
carryover to1979
Total carryover from 1978 to1979
3.Appropriations lapsed
.from carryovers
Total appropriations lapsed
1
Total 9313.0
iTotal 9313.0 100 I
1_..!This isatransfer toChapter 83

ANNEX GII
EXCHANGE RATES-1978
1)Conversion ofexpenditure intoEUA-agricultural coefficients
N ,LtgilImiIs 8FR DKR DM FF IRLL_»' IIlfr II II I
Annuel
coefficients jft724/78of10.4.78
(L98/78)0.02026 0.11673 0.29303 0.16822 1.35190 0.001103 .for
oliveoilpro­
duction aid
0.000944 for
otherexpenditure0.02026 0.29388 1.65030
2)Conversion ofaonthly expenditure intoEUA-budoetary rate»
r
Expenditure !
_paid JRate
I_on_s 0JsBFR DKR DM FF1RLR^R-IL LIMFL II^I
JANUARV 18.11.77-C279/77 41.1653 7.15628 2.61699 ]5.66072 0.640830 1023.94 41.1653 2.82317
FE6RUARV 20.12.77-C307/77'40.3914 !7,10156 2,56942 I5.79080 0.644304 1063.09 40.3914 2.78201
MARCH I20.1.78-C17/78 40.2701 7.05434 I2.59638 I5.78530 0,632084 1066.74 , 40.2701 I2.77976 I
APRJL 20.2.78-C43/78 39.9738 6.99602 2,54672 !5.99563 0.639121 1064.27 39.9738 2.74749
MAV 20.3.78-C70/78 39.8S17 7.03420 2#S6329 5.77936 0,658868 1072.60 39.8517 I2.74214
JUNE 20.4.78-C96/78 39.7757 7.02878 2.55582 5,727*7 0.677090 1072.29 3*.7757 2.727*7
JULV 19.5.78-£117/78•40.2089 6.96732 2.57259 5.67398 01672333 1060.31 40.2089 2.75306
AUGUST 20.6.78-C146/78 40.3641 6.96174 2,57042 5.67001 0,672007 1059.43 * 40,3641 2.75621
SEPTEMBER 20.7.78-C174/78 40,7757 7.04247 2.58762 5.58381 0.662414 .1062.57 40.7757 2.79166
0CT06ER 18.8.78-C198/78 40.3922 7.12434 2.56656 5.61868 0.663008 1082.53 . 40.3922 2.77948
NOVEMBER20.9.78*C224/78 40.3255 7.04561 2.55835 5.70489 0.658761 1080.12 40.3255 ' 2.78035
LOECEMBER
20.10.78-C250/78||39.5879 ||6.97533'||2,500945.77606 0.686475 1113.75 39.5879 2.73128
.._Totalexpenditure innational currency ii ■. i
es« 1' 1 -'■■■'1 ■«■
Totalexpenditure inEUAiu.
BELGIUM; i
DENMARK GERMANY FRANCE IRELAND ITALY LUXEMBOURG NETHERLANDS IUNITEDKINGDOMI
LAveragerateinEUA 40.19367.03856 2.55735 S.72523 0.662169 1072.48 40,10176 2.76651 0.663759

ANNEX GIIa
Exchange ratesforfinancial years1971to1977
1u.a.(EUA).=...n^c.
National
currencyIMFrate
1u.d=...EUArate
1971 1972 1973 1974
I1975I1976 1977
[BFR/LFR 50.- 50.866349.3611 47.8009 46,3994 45,5690 43.1654 40.8827
IDKR 7.5 7.41598 7,25927 7.12266 6.76176 6.85566 I
IDM 3.66 3.64566 3.57681 3.27644 3,083523.04939 2.815452.64832|
I" 5.55419 5.77214 5.65717 5.46775 5.73386 5.31923 5.34486 5.60608 I
IRL 0.416667 0.502321 0.509803 0.56026 0.621578 0.653701 1
LIT 625,- 647.414 654.264 716.460 775.743809.545 930.150 1006-790 I
3.62 3.65750 3.59991 3.42853 3.20224 3.13490 2.95515 2.80011 I
[UKL0.416667!–ÀV-
l0.502321 ||0.50980^|0.56026 ||0.621578 ||0.655701 |

ANNEX G111
EXCHAN6E DIFFERENCES -1978FINANCIAL YEAREUA
MEMBER STATE GUARANTEE PREMIUMS <D TOTAL~~n
BELGIUM +615.443.59 ♦4445,51 ♦619n889,10;I
DENMARK -429184.03 +33690.25 395493.78
GERMANY ♦1904083.51 +535849,71 +2.439933.22 •
FRANCE -1.877497.95 -121058.87 '-1998556.82f
IRELAND
' -1.267954.50 .084,62 .303039.12 ;
ITALy . -9919.288.67 -9919288.67'!
LUXEMBOURG +84997.29 • +568.33 +85565.62 '
NETHERLANDS -470.040,43 +67079,58 402960.85
UNITED KINGDOM -285231.79 ♦93722,85 191508.94 ?
TOTAL -11644672.98 (*>♦579212,74 -11065460.24'
(1)Premiumsforthenon-marketing ofmilkandpremiumsfortheconversion ofdairyherds(Regulation(EEC)No 10'
^**ofwhich:60%financedbytheGuarantee Section=+347527.64EUA
40%financed bytheGuidance Section =+231685.10 EUA

ΑΝΝΕΚβIV
CUA8ANTE6:ADVANCES AMDFUNOSAVAILABLE IMHEHBCiSTATESFO«1978
'«ΓΤΓI'βΕ!ΓΥΙ"ί!"Ι,Λ-ΓΓ~ν^ I Ι«ΤΗ^ΗΟ,| Ι– "" = ti i!t_ LU tFJ HFL W TOTAL»C
19»cc77 1500OOO000382500000.-369000000.-710000000.-3J750000.-40000000000120000000I205000000.-11500000-1 1 II i I I [–-Ivw.-i11900OW.-I # 1500000000458000000.-300000000.-666000000.-13SOO000.-60000.00000026000000270000000.-16500000-/ II I.-_– IvwwWW.-IO)00OOO.- /414000000.-755000000.-26000000,-40000000000ISO000000282000000.-7000400-/- I I _ I„' "" /55000000.- I/
15«.r7«1600000000420000000.-481000000-.-600000000.-24000000,-I.- 260000000230000000.-'20000000.-/ II 1 I I I* I I I»wWWVWW.-I/ 1660000000288500000.-448000000.-898000000.-23000000.-SO00000000046000000240000000.-30000000.-/
?8App78I I - - -I60000000000 I I/
17"»*782000000000655000000.-480000000.-698000000.-18000000.-6S00000000036000000208.->00000."26000000-/ Il I I 1 I I I»vw'W/-ICDuwUUO.-I/ 1780000000691000000.-443000000.-923000000.-31000000.-40000000000.S0000000280000000.-11000000.-/- - - •- - 28000000000 --728000™.- •/
Jul"a1800000000400000000.-521000000.-630000000."32000000.-68000000000480000002S5000000.-30000000.-/ II I I I I I Ivwwwww,-IJV'iwÜÜU.-II 2200000000454000000.-524000000.-630000000.-32000000.-5000000000021000000269^00000.-14500000.-/
21Aug78 - I- - 255000000.- I- '. I ,
31AU978 - - - - - - -* - "-/τ - Ι12000000.-/
13Sept782950000000375000000.-543000000.-650000000.-59500000.-25.000.000.000 16500,000235000000.-28000000-/100ct78 - - -'- -■ . „„„ "/! •*. I75000000.- - I/
160ct78,1800000000452000000.-505000000.-910000000.-28500000.-2000000000060500000285000000.-27000000.-/
UNo»78 1950000000548000000.-555000000.-1050000000.-28000000.-60000000600-280000ooo!-30ooö000!-/ Il I 1 I I I IwuWWU.-IJUooo000.-I/ 1264000000j83900000.-|517000000.-|-|19900000.-|- 85000000137700000.-17000000.-I/
AOVAMeS 9040000005443900°00'"6100000°00'"'375000°00'"369150°00'"606000000000919000000P179500000.-280500.000.-
MlL!®NE197»S379M792*1"0301-57«228»«.20 687378854.7{-592846.3518641817936527596077.-81078449.13 7851621.27
«IeL»SMML*"2832"7925685"°301576192228W0-2C10062378854-78368557153-"792418179365'W4594°77-"5**0578.449.13 288351621.27r
lUA(„604220948.35807813079.012420803430.35^1757073126.8J556421011.53739170243.81 23606211.iJl250638528.66434337478.29,'859408405802
<11Including •■changedifferences

AMNEXfty
MEHIUHS (100X):ADVANCES ANDfWDSAVAILABLE INWEHBEHSTATESFM1978(1)
I I"sr 6rrIF™irIvr l:-™*« i«m.«MM»i– --t IHFL UKL
21»*c/7 5000000IS000000.-20000OOO.-21000OOO.-100000.-- 1BOO000 I ~ KC–_ - 13Q000.- /18J«n78 800000012000000#-- - 100000.-• 3500Q00 - /
17Feb78 10000000S500000,-5500000.-- - 36(M)000 - /
17"«•78 10000000- 12SOO000.-- 200000.-- 5500000 SOO000."-/
20*»'7# 100000004000000.-- - - /
19"«»78 25000000B400000 1540000.-- - - 1300000 1425000.-- /
5Jun«7B -10000000.-- - - - / \
19Junt?B S000000S000000.-8000000.-- - - ,100000H3500000.-2000000.-/20July76 I400000012000000.-10500000.-15000000,-I- - otnjiaai I..'I/y>0*°° - 1800000.-/
16Aug78 ISOOO0009000.000.-49700000.-IS000000.-300000.-I 1SOO000 - I/
19S.P178 15000000- 1000000.-28500000.-- - 18000003000000-I/
24Oct7B 150000008400000.-42500000,-56500000.-- -j0000004700000--/
22*0*78 150000003900000.-66000000.-68000.000.-- - 45000002loû'ooo!-2200000-/
ADVANCES 13700000093.200000.-1217240000.-J204000000.-700000.-- 2755000015525000.-I6150000-
TOTALfUNDS : 8 "" __
î90ït0297"-8921651U5-"«"11"-- * - 55.681 8107781.90 1625063.84
ÏÏÎSÎÏm"'«00390397229755.89238891145.22253711146.-700000.-- 2760568123632781.907775063.84
,:&ssssïssssssks :sst»aesuss:st isissscsi:sass*cs :ssbsssssbssssss :ssssssistsssgsss sssssisssssssssss sssssxsssssssss :::s:ss:s-–s **-
ÍSTctl"^555.8813819398.0893874127.0544451204.171041988.02-687479.04 8562544.4511721738.471775Wõwu
(1)Preaiuasforthenon-aarket1n9 of•Ilkendfortheconveralon ofdairyherdsfinanced 60KbytheGuarantee Sectionand40XbytheGuidanceSection.
(2)Including exchangedifferences .

ANNEX6VI
FUNDSAVAILABLE INMEMBERSTATESFOR197$;GUARANTEE (excluding premiums)aEUA
|MemberStatem|Jan ■"b■"«ri*prll ,June ,July i*"9 iSept i°ct .I II"«« I.Average I
BELGIUM *9.211.5 16.9,r6-5 2^I-7.7|-7.l|rrn
36.«Ï7.1*7.2«0.-«1.7.50.3««.3,««•653.9 !73.1*«.« 81.2 «9.5
C«5.6 «8.653.256.9'48.255.3'5«.3 «7.-«6.266.-58.998.1 56.5
#»«.« «2.636.550.««3.2,«5.251.S|5«.S53.2 51.7«2.393.8 50.-
LUj11.2Ij16.7j6.5|5.-jj10.1|2.5j-7.8j |1«.3jL14*1«.....
DENMARK A5.8-8.81.^17.48^I-«1.«|I-H.5Î12^37^21^U9|-o.sl77]
■53.«6«.S61.860.1«1.H93.299.257.«64.452.6164.2190.61 66.9
C59.255.7:62.877.5 «9.551.884.769.771.6 74.166.190.1 67.7
»*7.95«.7 I«5.569.-90.966.2 72.«62.««9.9|72.266.«si.h66.6
LU|-8.7 j17.3j|8.5|-«1«|j-1«.«||12.3j|7.3||21.7|M-o.sjL_yi1,ii
IGERMANY ]I*35.21 58.918.2 ![18.siI33.6I«1.6]I39.ilJM«K«i siTTII«6.9I3^51
141.-114.7159.5188.9174.8187.8172.2202.7202.5 211.6197.4428.»198.6
C176.2 155-6177.7207.4208.4229.4211.3232.8243.9 263.7249.1475.5 235.9
»138.1 137.2159.6173.5166.9 190.-181.31 !191.1192.1 212.2203.3490.7 203.-
LU38.1118.«j|18.1|33.9j«1.5||39.«j|30.-j|«1.7||51.8||51,5|«5.8|-15.2||32.9j
|FRANCE *]121TZ1'98.–|1IH.7I"86.2I70H98.661.j|I108.6157^rsm41.-I«M79.51
>125.5115.-I130.3100.1155.«i121.8162.6111.2158.5 115.7159.5 181.a136.5
C246.9 213.-242.2186.3225.4220.4223.9219.8215.6 173.200.5224.4 216.-
#146.6 101.5152.8118.8127.7159.8115.4163.5157.-.132.3157.3183.3 143.-_u100.3j111.5j|89.4j:67,5|j97.7||60.6||10a.5||56.3||58.6|41.6||43.2j|41.1|
IIRELAND -0.9I7^ 9^4|16.3|IuTS-».il-9.3I-«.ilra «^î
*52.6 21.-41.137.5134.926.646.1 «7.648.3 89.8«M69.8 46.6
C51.7 28.437.8 «6.951.2 «0.938.-38.3««.283.8|70.575.H50.6
»««.3 31.628.330.236.5«a.9«7.342.450.2 I56.765.H'70.3 «6.-
LU7.«j-3.2J9.5j16.7|1«.7|-a.-j-9.3j-«,1|-6.-
I|27.1|5JL_M|«.6|
IITALY 182.11193.31173.7]122.-182.31'139.si8O.9I68.«I'65986^63/7129.31I107.3I
β39.1 56.«37.5 -I102.5 60.664.164.2«7.1!!23.118.553,91 I«7.2
C221.2 249.7211.2122.-1ISA.81200.1145.-132.6113.-109.2 82.283.2 !!154.5
0I20.6 75.589.439.1145.41120.1 76.6 I66.5 25.4I45.6 51.891.2]I62.2
■200.6j174.2|121-8|82.9|139.4
i !|80.-j|68.4||661|I87.6
| I|63.6j|30.4j|"M|92.3j
ILUXEMBOURG 0.7lM-1.3I1
0.81[-0.61I-o.s|-0.41!-0.21r*o-*0.8Io7«I
>2.90.73.76.51.20.91.2 1.210.51!0.41.5.M 1.9
C3.6 «.-5.25.22.21.70.60-70.1I0.31.12.9 2.3
00.3 2.56.5«.2 1.«2-31.11.10.3'0.4 o.«2.8I1.9
e3,3 1.51
I-1.3"I0.8"0.6j|-o.sj|-0,4||-0.2||-0.4||0»7|j0.1j0.4|
NETHERLANDS~n28.71–2«.«|-26.9| '3^39T5]-28.il7TÎ]-9.9|-K.9I!-8.6I-30.1!I"7.«
Β72.6I 97.1121.283.787.576.3128.2 92.5 !96.«111.51102.5152.9 101.9
C101.3 72.79«.389.-90.785.8100.1 99.686.5!96.693.9122.8 9«.5
0125.3 99.689.185.881.21H.1 93.-109.6101.«!105.2123.51«1.î 105.8
E-2«.--26.95.23.29.5-28.3||7.1| |-1«.9j|-8.6j|-29.6|-18.5jj-11.3|
IUNITEDKINGDOM I"Tl12.2118.317.6|-3.5|9ÏJMiMra IM5.4-1.-.!•?
Β18.-I25.611.131.3«5.538.«16.«44.640.-42.-]I41.H68.5 !35.2
C30.2!«3.928.727.854.553.134.8 41.634.8 !46.746.4 !67.5 !42.5
D11.8 26.632.318.539.334.837.8 I46.830.1 «1.««7.466.2 36.1
'I18.«I17.3–3-6|9.3|15.2||1B.3|,-y|-5.2||4.7![j|"1'"nîI6-H
-TOTALEEC AI39«.«l 337.5299.s|1
270.9230.«iI282.61 i158.4 I216.1|144.3 19«.«,196.2'110.li|236.2
0541.5I534.11613-6 !548.1 !684.51 |655.91 I734.31 I666.-|I711.6 I719.®672.51129.4 684.3
C935.9 i871.6!I913-1 i819.-I914.91 I938.51 I892.71882.11 I855.9I914.2 !|868.71239.5 !|920.5
D589.3l;571.sii640.-!589.5 I632.5 ,I781.41676.7!738.2 !I659.6l717.9i757.61220.9 714.6
IJ346.6j299.8
I lH|229.5j282.«|
l !I157-1l
I 1j216.-||1«3.9||196.3j196.^j111.1|18.6j205.9|
A*Balanceatthebeginning oftheMonthatthatmonth'srate
9•Advances forthemonth
C*Totalavailable forthemonth
ft■Expenditure forthemonth
6■Balancestillavailable
Thebalancesremaining available attheendofthemonthrepresent thedifference betweentheamountavailable atthe
beginning ofeachmonthandtheexpenditure declaredforthatmonthtotheCommission ,withouttakingintoaccountsums
paidafterthe20thofthemonthinrespectofthefollowing month.Thisprocedure explains whynegativebalancesare
shownattheendofthemonthforsomeMemberStates.
Seefootnote 1toAnnexGV.

-79-
.ANNE*6VII
FUNDSAVAILABLE INMEMBERSTATES FOR1978PREMIUM FORTHENON-MARKETING OFMILKANDMILKPRODUCTS
ANDPREMIUM FORTHECONVERSION OFDAIRYHERDS(10QX)
[MEMBERSTATEc|JanFeb
jMarch
jAprH
j"ayjtJung[July ,Sept.0ct."°v|DectAverage
IBELGIUM17IP.M.jp.M, IP.M. |0.24Ip.«.k«.|0.01i
ÏP.M. I0.3710#05
Β0.120.200.250.250.250.630.130.100.36 0.370.37 0.38 0.28
C0.120.200.250.250.250.630.370.100.'36 0.3810.37 0.75 0.33
0.120.200.250.250.250.390.370.100.35 0.38 -0.37 0.25IL|P.M.|P.M.|P.M. |P.H.|Q.?A|P.M.|P.M.|0.01|P.M.[0,37|0.38|0.08[
IDENMARKnrI0.57I0.83I2.08I1.79I0.541-0.62 I0.69|0.36I1.46 1.88î1.36|V»7 1.08
82.091.690.78 -0.572.620.721.721.28 -11.19 0.56 1.10
C2.662.522.861.791.11 2.-1.412.082.74 1.882.55 2.53 2.18
»1.840.451.091.241.731.311.050.610-83 0.540,60 0.85 1.01
LIL[0.82|2.07|1.77|0.55J*0.62|0.69|0.36|1.47|1.91|1.3411/95|1.68I"TI
|GERMANY[7I8.27IlS.OI|11.47I9.35fio.os 6.974.195.965.8117.194.59 7.07 8.85
87.65 -2.124.91-0.603.114.0819.21 0.3916.61 26.39 7.09
(15.9215.0113.7914.2610.08 7.577.3010.0425.02 17.58r.20I33.46 15.94
»1.183.224.614.123.133.351-354.197.97 13.-14.29 28.18 7.39IL|14.74j11.79I9-18[10.14|6.95|4.22|[5.95|5.85j17.05|4.58[6,91
i|5.28I 1
IFRANCEnrI8.78 112.21[12.22 ,11.20I8,705.402.952.753.95ro.6i •[•4.95I-2.47 5.11I
83.71- -' - 2.642.69l5.079.911.77 2.98
C12.4912.2112.2211-20 8.705.40m5.396.64 5.684.969.30 «•09
» - -0.622.813.352-470.211.496.0310.707.473.86 3.25
IIL[12.49|12.21j11.60|8.39l».35||2.93||2.74||3.90||0.61||-5.02 ■£511^44|I I
IIRELANDnr^r^i I0.15I0.32I0.31fo7s2 0.470.48r0.34Ir0.18 0.60I0.55 [o.400^36
>0.160.16-0.31 - - " 0.45 0.09
. C0.160.310.320.62 0520.470.480.340.63 0.60 I[0.550.40 0.45
» - - -0.090.03 -0.140.160.03 0.060.140.19 0.07L LU|0.16|[0-31|lI0.53|!0.49|I0.47|0.34|'0*18|j0.60|I054||0.41|0,21 ||0.38[
ITALY iA
•
C
0
EI
i"*I_
ILUXEMBOURG71!
P.M. IP.M.0.08IP.M.0.09I0.03IP.M.I0.03I~~ I
P.M. |P.M.IP.M.P.M.I0^02
a0.040.080.090.14 -0.030.030.030.04o.os!0.050.11 0.06
C0.040.080.170.140.090.060.030.060.04 O.OSI0.05 I0.11 0.08
ft>0.04 -0.170.050.060.06-P.M.0.060.04 O.OSI0.050.11 0.06
IP.M.i
t0.08|P.M.j0-09|0.03|P.M.|•0.03|P.W.jP.M.| 0.02|
INETHERLANDS T12.87I2.59|2.22I1."I1.26I0.91I0.88I1.54|0.22I-0.56!0.011.04|
ai
!- -0.29-0.521.27 - -1.081.69 !0.77 0,47
C2.872.592.221.761.261.432.151.540.22 0.521.70|1.81 1.68
ft0.320.370.770.500.360.54I0.601.330.77 0.510.681.25 0.67
Ej2.55 1K4511.26|0.9Q|0.89|K55I0.21[-0.55|0.01|1.02|0.56|1,01|
|UNITED712.54I2.02I1.38I0.76!0.03I-o.ssf-1.13I1.69i3.8S|2.23|0.85|■0.43I1.07
KINGDOM ■0.23- - - - -2.972.68 - -I3.21 0.76
C2.772.021.380.760.03-0.881.844.373.85.2.23I0.852.78I1.83
0.740.660.610.730.940.240.150.57T.621.391.291.08 0.83Jj2.03[1.36|0.77|0.03|-0.91|1.69|3.80|2.23|0.84|-0.44|1.70I
11"I
ITOTALEECI7123.03I32.81I29.97I24.88 I21.22I12.28I8.30I12.67i15,47I21.96I2,*1I7.951 1775
>14.-2.133.245.900.824.408.2311.25 I24,03 6.96!9,82|13.19 12.83
C37.0334.9433.2130.7822.0416.6816.5323.9239,50 28.9212,23I>1.14 30.58
. t4.24i4.908.129.79I9.858.36I3.87 8.SI17.64 26.63i!4,52 ■15.89 13.53 ILJ■J32.79|30.04|
l25.09j20,99j12.19j8.32j12.66|15.41|21,86j2.29j7,71|15.25j17.05j
A■Balanceatthebeginning oftheaonthatthatBooth'srat*
B■Advances fortheaonth
C•Totalavailable fortheaonth
0■Expenditure fortheaonth
E•Balancestillavailable
Thebalancesregaining available attheendoftheaonthrepresent thedifference betweentheaaountavailable atthe
beginning ofeachMonthandtheexoenditure declaredforthataonthtotheCommission,withouttakingintoaccountsuns
paidafterthe20thoftheaonthinresoectofthefollowing aonth.Thisprocedure explains whynegativebalancesare
shownattheendoftheaonthforsoaeMemberStates.
P.M.•tokenentry

ANNEXE GVIII
EXPENDITURE CHARGED FORTHE1978FINANCIAL YFAR mEUA<1>
ITEM Belgium|>enmark.àermany -FranceIrelarvdItaly Luxembg.Nether-J
Lands |Jnited
KingdomtTotal EEC.
j>
CEREALS 86.80762.565I167.899 374.944 3.190137.837 0.26& 78.226 87.734999,468|
REFUNDS 79.845 57.457 111-853 347.842 3.152 24.275 0.068 51,00569.169 744,666
REFUNDS 74.574 57.457 111.699 311.516 3.152 20.641 0.068 47,805 69,169696.081J
COMMUNITY FOODAID1978 22.571 22.571I
COMMUNITY FOODAIDUNDERPRECEDING
PROGRAMMES5.271 0.154 13.755 3.634 3.20026.014 J
INTERVENTIONS 6.962 5.108 56.046 27.102 0.038113.562 0.198 27,221 18,565I254.802 |
PREMIUMS FORTHEINCORPORATION OF
WHEATINANIMAL FEED0-057 0.057 J
PRODUCTION REFUNDS FORPOTATO STARCH 1.679 2.977 3.001 16,465 24.122|
OTHERPRODUCTION REFUNDS 6.671 0.055 16.173 20.662 0.038 8.156 9.360 18.333 I79.448
AIDFORDURUMWHEAT90.131 90.131
CARRYOVER PAYMENTS 0.458 6.155 2.538 1.293 10.424 I
BUYING-IN ANDSUBSEQUENT OPERATIONS 0.022 2.936 30.579 -0.349V
« 15.044 .0.198 0.003 0.23248.665 I
SPECIAL INTERVENTION MEASURES -0,042
•>-0.042 I
OTHERINTERVENTION 0.269 0.147 1.250 0.231 0.100 1.997|
RICE0.831 0.002 3.222 0.024 12.449 0.186 0.00316.717j
REFUNDS 0.092 |0.002 3.182 0.024 12,406
__0.142 0.00315-851|
REFUNDS
i–^ ,, H||0.092j0.002j3.1820024j3.101II0.142|0.003J6.546|
i
(1)Thefiguresgivenareinmillionsofagricultural unitsofaccountexceptthetotalswhichareinmEUA;thedifference {
isenteredundertheitem"expenditure resulting fromtheaDolication ofdifferent exchange rates(seepage89)

»Item j[Belgium Denmark Germany France­[reLandItaly1
Luxeabg.jJNether-
IlandsUnited..
KingdojnTotal EEC
t
t
ICommonmeasurefoodaid1978 6-295»
6-295j
[Commonmeasurefoodaid preceding programmes3.010 3-010I
IIntervention 0.739 0.040 0.043 0.044 0.866}
Milk/dairyproducts 209.900 259,179 1149.852 573.269[193-143 22.489 19.181I609.655I328.988 3365.656 I
jRefunds119.393
94.163152.399
152.399231.371 195.626 123.817 10,121 1.407I420,782 58.555 1313.471
[Refunds136.099 177.420 112.736 10.121 0,894I
I390,026 I[56^3121130.170i
Refunds onfoodaid,1978 5.940 6.476[5.534 17.950 ;
IRefundsonfoodaidpreceding
Iprogrammes '19.290 88.796 12.672 11.081 0,513 30.756 2.243165.351 I
I
Intervention /skimmed milk 67.334 87.106 654.963 333.995 58.306-2.269 13.885 153.506 148.689
95.0501515.515
630.862Aidforskimmed-milk powder-
animalfeed16.485 6.889 139.017
86-069264.075 11.213
11.8691.627 0,584 95.922
IAidforliquidskimmed-milk animalfeed20.455 60.730 3.399 2.359 0.136 2,220 23.298 210.535
IAidforskimmedmilkprocessed intocasein|2.482 31.856 44.641I'24.774 36.072 [142.776I
IPrivatestorage*> 1
PublicStorage andspecial
disposai measures30.394 17.005 398.021 21.880 10.450-6.255 13-165 19.292 27.390 531.342I
IFoodaid-publicstocksof skimmed-miIkpowder i
IOtherintervention
II
II■I II j )

Item Belgiurr Denmarki
German/FranceIreland Italy Luxembg .Nether­
landsUnited
Kingdom4
EECtotal .
I
Intervention /butterandcream24.868jj1232-590 47.085 16.536 10.278 3.754 45.895 126.295527,041|
Privatestorage6.902 0.960j7.29010.835 5.456 0.272 14.679 7.406 53.800 I
PublicStorage andspecial
disDosal measures17,966I9,965[222.771 26.080I
I5,545 3.180 31.216 41.441358,164 I
Specialmeasures forabsorbingsiirnliKp ?ofbutterfats8.815 2.529 10.170 11.080 4,733 0.302 77.448115.077 [
Foodaid-butterfrompublic_stocks
Otherintervention(
Intervent ion/othermilkproducts 0.228 0.293 1.109 4.126 0.103 10.175 0.001 0.344 5.969 22.348 [
I
Storageofcheese 0.004 3.858 10.175 14.037j
–.i.i.–- i
Participation schoolmilk
Otherintervention
I
Othermeasures milkandmilk
products sector
Guarantee sharenon-marketing
andconversion premiums
Othermeasures
Financial participation bymilk
__producers '
Expenditure topromoteexpansion
ofmarkets0.228 0.293 1.105 0.268 0.103 0.001 0.344 5.969
6.5458.311
0.452 0.33^3.89? 80.8131.483 5.987 I39.678,22.437
I
I1.483 5.987 39.678 22-437!0.452 0.334 3.897 6.545 80.813
!
-8,734
2.388•J
-25.067-5.257 -34,923 -33.173 -6.396-5.859-0.467-17.546 -137.422j
1.851 25.064 3,173
2.9030,325 0.043 0.267 2.777 8.002
1.215
6/77643.890 I
Marketdevelopment measures0.825
0.363
!3.589
1.7210.213
0.112 0.002 0.5068.745 {
I
Distribution ofschoolmilk0.258
i0.270 10,008 )
(
II II I It

Item Belgium Denmark Germany :FranceIrelaneItaly Luxeabg.Nether­
lands'United ■
Kingdom\EECtotal*
i
SpecialdisposalmeasuresbutterfatI1.593 1.20019.754 0.043 0.265 2-2710.011I
Othermeasures I
Oilsandfats j1.702 0.709 *1.154 60.516j214.2227.439 8.132333.874I
Refunds/oliveoil I
i0.006 0.006 I0.0100.022|
Intervention /oliveoil0.001 1.415 207.261 208.677
Production aid
Storage
I
Otherintervention
Refunds/colza,rape,sunflower0.531 169.171 169,702
31.274 31,274
0.001 0.884 6.8167.701j
0.001 0.004 0.100 0.001 0.106
Intervention /colza,rape,sunflower
Production aid
Storage
Otherintervention
Intervention /otherseeds(item1201)
Aidforcottunseed
Aidforsoyaseed
Aidforflaxseed
Aidforotheroilseeds0.032 0.701 41.153 51.545 6.779 6,234 8.120I- t114.564 I
0.032|0.676 41.123 51.545 6.779 6,234 8.120 114.509
0.025 0.030A
% 0.055I
1.669 0.007 0,001 7.546 0.176 1,105 0,001 10.505I
I0.176 0.176
0.347
1.669 0.0010.346
7.2000,001
0.0071.105 9.982j
LL–Ji

Item jI
Belgium IDenmark!
Germanyj
IFrance
IIreland ItalyLuxenbg.Nether­
landsUnited -
Kingdomi
EECtotal
I
Sugar
Refunds/sugar
Refunds
Refunds Community foodaid1978
Refunds Community foodaidunder
preceding programme
Intervention/sugar
Denaturing premiums
Refundsforuseinchemical industry
Reimbursement ofstoragecosts
Publicstorage
Measures forsugarproduced inFrench
overseas departments
Sugarimportsubsidy
Otherintervention
Beefandveal
*
Refunds
Refunds
Refunds Community foodaid
I107.744 I34.307I161.419 358.106 2.869 34.266 45.343|
I26,156770.210 !
93.480 26.448 114.285
!289.360 31,473 1.892 556.938 I
93.480 26.448 114.278 288.244 31,4731,892 555,815 I
0.007 1.116 1.123|
!
24,264 213.272 !14.264 7.859 47,134 68.746 2.869 34,266 13.870
0.351 0.246
ij0.063|I0.660j
0.041 0.084 0,009 0.159 0,001 a.294|
14.214 7.818 46,699 60.993 2.869 34.266 13,648 23.517 204.024 j
0.050
7.4980.050
8.244 0,746
*
47.076
10.944*>
112.970
20.17334.155 2J.^08
5.27013.647 158.882 33.861 140.885
0.447566.744 Ι
11.181 34.899 18.568 -20.070 121.552
121.55211.18110.944 34.899 18.568 20.173 0.447 20.070 5,270
J

Item 'Belgium Denmark GermanyFranceIrelandItaly Luxembg.Nether­
landsUnited
Kingdom1
EECtotalj
I
Intervention/storage
Private storage
Publicstorage
Otherintervention
»
Aidforsocialsecurity recipients
Premiums fororderly marketing and
slaughter ofbe-efcattle
Premiums forreconstitution ofherds
Other '
Pigmeat
Refunds
Intervention
Eggs/poultrymeat
Refunds oneggs
Refunds onpoultrymeat
Fruit/vegetables
Refunds
Refunds onfruitandvegetables
Refunds onproducts processed fromfruitandvegetables2.466 36,132 124.112 15.294I92.771 49.443 !14.085 16.129 350.432 )
I
2.484 0,923 11.497 6.563I4,304 0,026 I0.7764,24130.814I
-0.018 35.209 112.615 8.731 88.467 49.417 I13.309 11,888 319.618I
-0,129-0.001 0.026 90.995 3,869 94.760I
I0.001 0.001I
-0,129 0.026 3.86e 3.765
-0.001 90.995 90.994 !
I I
_
2.465 19.651 2.173 1.2061 0.381 6,674 5.367 0.363 38.280
0.469 19.169 1,583 0.281 0,327 0,348 4.242 26,419
11.861 1.996 0.482 0.590 0.925 0.054 6.326 1,125 0.363
0.862[4.8265.030 13,715Λ
* 0-113 5.494 3.638'33,678I
0,327 0.116 1.928 0.334 0.097|2.9930.317 6.112I
0,535 4.710 3.102 13.381 0,016 2.501 3.321 27.566I
0.229 0.946 1.465 10.273 0-082 82.917 .2.40É 1.883 100.202I
0.082
0.0390.946
0.5741.178 4.06:
1.4360,082 38.675 0.93Î 1.52047.486|
0.202 17.913 0.60(1 0,001 20,765i
ï
0.043 0.372|0,976||2.62'j0.082 20,762 0.334 1.51926.721|

Item BelgiurrDenmark Germany FranceIreLandItaly Luxenbg .Nether­
landsUnited
Kingdotp4
EECtotal'
Intervention /fruitanavegetables
Financial compensation forwithdrawal
andbuying-in
Processing anddistribution
Financial compensation forpromotion
ofCommunity citrusfruits
Financial compensation forprocessing
citrusfruits
Otherintervention
Intervention /processed products
Wine
Refunds
Intervent ion
Private storageaid
Aidforrestorage oftablewines
DistiIlationofwine
Otherintervention
Otherexpenditure
Obligatory distillation ofby-products
ofwine-making
t0.147 0.28?2.575 44.242 1.470 0.363 49.082 »
0.147 0.287 2.445 18.990 1.4700,363 23.702 I
0.002 0.002I
0.126 10,060 10.186j
15.192 15.192
»
i
3.634
62.520j3.634
I0.004 0.68/32.837
I28.945 0.047
0.004 0.041 1.137 0.353 1.535
51.553
34.897
2.142_0.646 22.268
13.51728.592
20.9830.047
r
i0.350 0.047
0.023 1.698\
« 0.421
0.282 3.307
3.746•J7.188 10.777
3.737 -0.009
! 9.432 9.432
9.432 9.432
II I
I III
I I !I

Item Belgiun Denmarfc Germany FranceIrelandItalyLuxe*bg.Nether­
lands...United
Kingdom1
EECtotal
Tobacco
Refunds
Intervention
Premiums ,
Storage
Otherintervention
Fisheries
Refunds '
Intervention
Withdrawals andotherintervention
Privatestorageaid
Otherintervention
Alcohol
Refunds onalcohol
Intervention/alcohol2.220 15.807 54.646 137.235 I0.005209,913 1
0.421 2.158 0.005 2.584I
2.220 15.386 54.646 135.077 207.329I
2.220[14,90854.646 107.967 179.741 I
0.478 26.511 26.989I
0.599 0,599I
0.296 0.437 2.505 1.170 0.763 2.889 2.597 3,36414,021|
0.076 0.328 1,144 0,289[0.532 2.349 2.450 7.168[
0.220 0.109 1.361 0.881 0.231 2.889 0.248 0.914 6.853
0.220 0.109 1.361 0,881 0.231 2.889 0.248 0.914 6,853
*
»
i

Item jBelgium
|DenmarkGermany ,
iFrance
1Ireland Italy Luxenbg .INethei–landsUnited
Kingdom
i1
EECtotal
I
l i
Othercommonmarketorganizations I3.425|12.113 10.703i
i34.254 0.334i
j3.6770.020[9.114I
|7.905I
81.545j
Intervention/flaxandhemp j!1.744j
;i
i
!r–■■■
I0.006 10.080 0.840
iI
!1.0875
0.658 14.415
Intervention/fibreflax |1.744!
!
i ..9.184 0.825I
I1.087 0,658I13.498
!
Intervention/hempI––
!
i0.006I
!0.896
... ...j0.015\
S I I0.917
Seeds I0.777 5.032 1.432i
j3.8610.110 0.135!
|0.020
13.638r
j2.742|17.747
Hops!
'i0.305
li
ir
6.488 0,337!0.021
I!
II
Ii
II
II
i1.913
Hi]
|9.064
SiIkwormsa
il
ïi
ï
ji I
I0,006j
.j0.535
i IiI
J0.541 I
1 I
!
Dehydrated fodder Ii
0.212j
I7.081
![2.631
i!
I19.970j0.203
ilï
j2-1673
l3.867j
ï2.555
ii I38.686 I
Potatoes_!
i
ï .! 1i Il
ju I
il
1«
i!
\\
^!
1
Sheepmeats
L .i
Ii
S'
i(
i
ï..._î !
OtherI0,387 0.146I
l S i!0-522j0.037
iI l
I1.0K I
Refunds oncertain goodsobtained from
fromprocessing agricultural productsI !
!13.718 23.088!21.874
Ilï
!17.967I«
!'13.349 9,215 0,059!
I43.942l
j41.141 j184.353
Accession compensatory amountsintra-
Community trade I1-359;1.621j3.036 1.627 5-224 I2.664
I_!
j7.5875 I
j0.002 I|23.120
Monetary compensatory amounts [44.825 195.937 119.531i
106.803 Ij
I161.984 -42.533j~0.110i
j184.180 -53.660i
i716.957
Intra-Communi tytrade I37.951195.937 65,573 I105.455 161.936I
[-43.286-0.134j169,616 (-174.572 !518,476
MCAsonimportspaidorcharged by
importing MemberStatesI-7.273
_-177.945I
213.567 II
j2.5337.104 "0.217i
I-11.579|6.718i
!32.908
?
MCAsonimportspaidbyexporting
Member States |34.984195.933 129.575j277.828j188.826|
L|145-514IJ972-659
I
MCAsonexportspaidorcharged by
exporting MemberStates |j10.240j0.004|113.943|-385.94oJ-29.422 -50.390|0.08335.681 -181.290I
! I
|-487.091 1

Item !Belgium Denmark .Germany ,FranceIrelandItaly luxembg.Nether­
landsJnited
Kingdorr*
EECtotal
f
MCAsinextra-Community trade
PortionofMCAsgranted onimportsover
andabovelevy
MCAspaidonexports
Allsectors mEUA
andcompensatory amounts
Expenditure resulting fromapplication
ofdifferent exchange rates
Grandtotal (1)
/
ofwhich:Refunds (2)
Firstcategory intervention
Secondcategory intervention
Grandtotalcorrected onthebasisof
Article2aofReg.974/716.874 53.958 1.348 0.048 0.753 0.024 14.564 120.912 198.481 !
1,348 0.048 0.753 120-912 1230611
6.874 53.958 0.024 14.564 75.420 I
490.034 662.457 1865.239 1675.217 494.289 793.944 19.463 1035.698 480.9177517.258I
111.735 143.834 623.803 64.186 57.875-46.787 4.492 238.188 -41.8841155.442 I
601.769 806,291 2489.042 1739.403 552.164 747.157 23.955 1273.886 439.033 8672.700 I
(
I
i
326.1 295.6 580.8 890.2 161.5 98.9 1.6 595,1 304.6325474|
114.0 300.6 501.7 728.7 233.8 573.5 1.0 374.6 95.3 2923.2
50.0 66.3 782.7 56.3 99.0 121.6 16.8 66.0 81.0 1339.7
558.8j567.82.316.1j1450.9 541.3
«1165.6 23.9 1094-9"1153.4 8672".7
Withouttakingintoaccountcorrections relatingtothebreakdownofexpenditure byMemberStateunderthesystemwhereby
theexporting MemberStatepaysMCAsfortheimporting MemberStateinintra-Community trade.Amountspaidunderthis
systemareenteredontheline"MCAsonimport"underthenameoftheMemberStatemakingthepayment.Forthesecorrect­ions,seeTable5,page24andcorrected grandtotal.
(2)Therefundtotalincludes MCAspaidontradewiththirdcountries .

ANNEX GIX
Breakdown ofintervention inrespectofstoragecostsinthe1978financial year
magricultural unitsofaccount
i : iofwhich
Sector Privatestorage Publicstorage
Technical costs Financial costsDifference between
buying-in and
sellingprices
Cereals 48.7 39.6 16.0 6.9
Milkanddairyproducts 67.8 913.1 44.9 100.0 768.21
0ilsandfats tokenentry 31.3 12.9 9.8 8.6
Sugar 204.-
Beefandveal 30.8 II319.6 65.7 48.3 205.6
Pigmeat 11.9
Wine 34.9
Tobacco 27.0 1.9 •4.2 20.9
TOTAL 349.4 1339.7 165.0 178.3 996.4
Mainlyspecialmeasures forthedisposal ofmilk
Regulation (EEC)No804/68(recipients ofsocial
andoutsidetheCommunity .anddairy
security.products withintheCommunity underArticles 6and12of
army,non-profit-makingorganizations ,Christmas butter)

-91-
ANNEX GX
Products inpublic storage
at31Dec 1978
Product Quantity (tonnes )1Value (agricultural units ofaccount )
Common wheat 1050 777.722 141 329 603.61
Barley 181 895.111 23100 679.10
Rye 600 782.435 82607 584.81
Durum wheat 150 466.221 28739 048.21
Milk powder 721 826.516 522 919 111.26
Butter 258 100.003 465 096 205.41
Olive oil 104 894.796 121 677 963.36
Oil seeds 820.056 237 816.24
Frozen beef 135 916.710 192 458 061.36
Boned beef 79361.967 161 660 326.78
Preserved beef 37089.539 56969 531.90
Tobacco 21616.608 38110 079.90
EEC total 1864 906 011.94
Thevalue hasbeen obtained byapplying theprices fixed inagricultural
units ofaccount byRegulation (EEC )No2879 /79.

ANNEX GXI
Expenditure oftheGuarantee SeetionoftheEAGGFbysector
m
:SECTOR1,»w»snwaiKSs*s8tsa«ts8*iss8sssas8SMm8sss5Bj
2 19752 1976
:CEREALS
:Refunds
:Intervention ,ofwhlch
■Denaturing premium
*Production refund
•Aidfordurumwheat
nice
Refunds
Intervention
DAIRYPRODUCTS
Refund*
:Intervention ,ofwhlch
:-Aidforskiamedailk
••Aidforcasein
t•Storage andspecialMeasures
-Foodaid
OILSANOFATS
Refunds
Intervention ,ofwhich
..-Aidforoliveoil
-Aidforcolia,rapeandsunflower
isoeds
:SUGAR
:Refunds
:Intervention ,ofwhich
:-Reimbursement ofstoragecosts
;BEEFANOVEAL
•Refunds
:Intervention ,ofwhlch
*Publicandprivatestorage
-Orderlymarketing
premiums
*Premiumforrestocking ofherds
PI6BEAT
Refunds
Intervention
EGGSANOPOULTRYNEAT (Refunds)
FRUITANOVEGETA8LES
Refunds
Intervention
WINÊ
Refonds
Intervention ,ofwhich
-Privatestorageaid
-Other(aainlydistillation )
TQ6ACCQ
Refunds
Intervention
FISHERIES
Refunds
Intervention
INTERVENTION MISCELLANEOUS PRODS.
Flaxandhemp
Seeds
Hops
Silkworms
Dehydrated fodder
Non-Annex IIProducts (Refunds)
TOTALEXPENDITURE AGRICULTURE313.0
66.3
316.5
16.4
194.8
69.3
1.0
0.4
0.6
1257.9
361.6
696.3
499.3 !
84.2:
258.8 :
93.9:589.3
329.9
259.4
0.3
90.6
103.1
3.4
2.8
0.6
1193.7
331.4
862.3
538.7
68.0
189.8655.9
403.4
252.5
51.2:
82.8:«nnatMstnssnsnsssn -fs-s
19":1978
629.» :1X12.5
365.7 ;831.9
264.2 260.6
-0.1: 0,1
76,7: U7.0
13*.S: 89,0
184
18.2
0.2
2277.7
765,6
1512.1
.656.5
99.1
246.1
120.1
0.7
119.4
109.2
10.2:
106.1
98.2
97.9
772
322.1
.54.3
267.8
251.2
14.6.187.8
0.6
187.2
158.3
28.9
271.2
27.8
243.4
94.7
923.3
145.9
777.4
407.2
250.5
88.1247.1'
10.3
236.8
143.4
93.4
229.3
62.0
167.3
147.8
615.9
133.6
482.3
347.7
87.9
46.6
69.7
59.9
9.85679
40.7
16.229.0
18.2
58.5
15.2
43.3
41.0
0.2
40.8
25.3:
15.5:9.4
72.6
28.9
43.7
141.3
o.r
140.5
36.5:
104.0:24.7
4.3
15.1
185.1
44.0
141.1
133.8
1.6
132.2
38.7:
93.5:
166.4
0.1
166.3200.5
1.4
199.1185.4
1.7
183.7
1.2
0.7
0.510,0
3.0
7.011.0
4.0
7.0
36.4
11.6
15.6
5.1
0.4
3.758.8
13.7 23.914.4
24.6
7.8
0.6
11.4'76.2
67.020.3
24.1
16.0
0.4
15.413.5
13.3
0.2
2924.1
90.4
(98,4
409.1
189.3
177,9
467.7
132.1
335.6
290.5
3.9
41.1
37.3
29.3
8.0
25.6
178.2
50.8
127.4
89.9
1.4
88.5
35.6:
52.9:
205.2
4.3
200.9
8.8
3.8
s;o
56.6
136.314'.4
18.1
9.9
0.3
13.817.9
16.8
1.1
1417.4
1506.7
725.5
127.5
355.8
268.5
1.0
267.5
177.1:4014.7
1565.0
2449.7
965.1
I66.4
618.8
324.8
0.2*
324.6
143.6
131.0
878.0
640.4
237.6
227.9
638,7
145.4
493.3
413.0
3.4
76.9
i5,0 1
32.2
12.8
38.1
100,7
47.9
52.8
63.7
1.6
62.1
35.3:
26.8:
216.1
2,7
213.4
13.4
8.0
7.4
9%.0
208.515.4
20.3
11.2
0.5
42.6
2596.3 3742.1 4746.9 5640.0 7765.2
Accession compensatory amounts
Monetary compensatory aaounts346.4
153.5444.8
335.6402.0
438.2201.1
989.227.2
880.3
TOTALEXPENDITURE EAGGFGUARANTEE 3095.2 4522.5 5587.1 6830.4 8672.7
Theexpenditure istakenfromthestatements bytheMemberStatesunderthesystemofadvancesandchargedtoeachfinancial
yearinaccordance withArticle109oftheFinancial Regulation .
*S1nee1January1978thebudgetoftheEuropeanCommunities hasbeenexpressedinEuropeanunitsofaccount(EUA)representing
theweightedaverageoftheexchangerates'orthe*e«oerStates'currencies ,andnolongertheunitificcounc(u.a.),which
wasbasedontheratesofthedifferent currencies declaredtotheInternetion«lMonetary fund.AlltheMqyres;ntn»stable
aretherefore expressed inEUAtoenablethemtobe'.onoared moree.nsiy.Fortherejrs1974to1977.imounMina.a.haveb*»n
converted into6UAonthebasisofcoefficients foreachfinancial yearandeachMemberState(seeAnnex3!!J).

-93-
ANNEX GXII
BflEAKOCUN OFEXPENDITURE BYECONOMIC CATEGORY-1978FINANCIAL YEAR<mu.a.)(a)
jr***3??Z42***§=r–'„^rjMovnaccordingtoeconomicnatureofoperations I
TOTAL
EXPENDITUREI INTERVENTION 1
SECTOREXPORT
REFUNDS
Storage (1)Withdrawal
andsimilar
operationsPrice
compensatory
measures(Guidance
premiumsTotal
9_ 6 £ Ê îI < I9 |h«d»e+f*g |
A.Cvrcals 999.5r744.7f48.7 l-I206.1(2> I254.8
Me* 16.7 15.9 - * 0.9 0.9
Mllkproducts 3365.7 1313.5 957.3 1014.0(3 ) 80.8(4)2052.1
Oilsandfats,including I333.9 0.1 31.4 - 302.4 333.8
•oliveoïl 208.7 I 31.3 - 177.4(5) 208.7
-o1l»«d > H4.7 0.1 0.1 - .114.5 114.6
•flanseed i!10,5 I ■- - 10.5 10.J
Sugar 770.2 556.9 204.1 9.2 213.3
B««fandveal 566.7 121.6 I350.4 3.7 91.0(6)
Pfgxat j38.3 26.4 11.9
Eggsandpoultrymeat |33.7 33.7 - .1 -
Fruitandvegetables .100.2 47.5 23.7 29.0(7)I
I 52.7
W1n« 62.5 1.5 |I34.9 20.2(8)II5.9(9) | 61.0
Tobacco |209.9 2.6 I27.0 180.3 !I207.3
Fisheries 14.0 7.2I6.8 I 6.8
FLa*andhenp j14.4 |- 14.4
Seeds 17.7 I - I17.7 17-7
HopS |9.1 - - -'l9.1 ».t
Silkworms I
Dehydrated fodder j0.6
38.70.6
38.7O.&.
38.7
Refundsonprocessed non-I
AnneiII.products184.4 j184.4 fI
I*
TotalA
_ i6777.2|3055.9 <
\1653.8 |
!50.7 j1845.0 |171.8 3721.3
X 100 fr
45.1 |24.4 0/7[27.2 |i* |54.9
■•Accession compensatory 23.1I
l23.1 23.1
C.Monetary compensatoryamounts '
-1ntr«-Commun1ty trade {518.5 I
I.I
I518.5 518.5
-tradevlththridcoun-I
tri#«198.5 I198.5 | I
I-■.1"''I_1_
D.Effectofdualrate 1155.4 j495,2!--328,0 |-•j*1328,712AJ-660,2 1
r
Grandtotal8672.7 |3.749,6 j•■1.981,8 52,1!-2.715,3 |"173,94.923,1
» [100 |43,2 !22,8 1__0,6|31,3 !^2'.°l56,8Jj|SSS3IUaSS3S8S33SSSUSSS:aSSSS»SS33SS8BSS*3SS3S313SS8«SSS$5l8*SMS83S8S8atBS383SS««SaaaaanUMaai *
(•>forfootnote'sseenestpage

Footnotes toAnnex GXII
(1)Privateandpublicstorage,including certaindisposal measures .Thedetailsofexpenditure aregiveninAnnex
(2)Ofwhichproduction refunds (103.6 mu.a.)+aidfordurumwheat(90.1mu.a.)+other(12.Amu.a.).
(3)Thisamounttakesaccountoftheco-responsibility levycharged :137.4mu.a..
(4)Premiums forthenon-marketing ofmilkandfortheconversion ofdairyherds.
(5)Production aid(169.7 mu.a.)+otherintervention (7.7mu.a.).
(6)Calvingpremiums topromotetherestocking ofherds(91.0mu.a.).
(7)Promotion ofCommunity citrusfruit(10.2mu.a.)+processing ofcitrusfruit(15.2mu.a.)+intervention in
respectofproducts processed fromfruitandvegetables (3.6mu.a.).
(8)Obligatory distillation oftheby-products ofwine-making (9.4mu.a.)+distillation (10.8mu.a.).
(9)Aidforthere-storage oftablewines(2.1mu.a.).
(10)TheamountsgiveninA,BandCareinagricultural unitsofaccount.Thegrandtotal,whichtakesaccount ,of
thedualrateeffect,isgiveninEuropean unitsofaccount.

ANNEX GXIII
OverallcostoftheGuarantee Sectioninrelationtogrossdomesticproduct CGDP)
YearEAGGFGuarantee expenditure
('000mEUA)Community gross
domestic product
atmarketprices
(milliard EUA)EAGGFGuarantee expenditure
as%ofCommunity GDP
Gross Minusagricultural levies Gross Net
a b c d e=100b/df=100c/d
1973 3.957 3.414 831.- 0.48 0.41
1974 3.095 2.735 973.- 0.32 0.28
1975 4.523 3.903 1105 0.41 0.35
1976 5.587 4.414 1261 0.44 0.35
1977 6.830 4.693 1399 0.49 0.34
1978 8.673 6.394 1545 0.56 0.41

ANNEX GXIV EQUALIZATION OFSTORAGE COSTSFORSUGAR
A.COMMUNITY SUGAR
Situation at20Feb1979
Sugar Total,Levies
Year (u.a.)Totalrefunds
(u.a.)Annualbalance Cumulative balance iDuration I
absoluteil OTstorage
|%(a)absolute %(a)(months)I
+767923.00 +1.43 +767923.00 +1.435^63
-3823513.89 -7.09-3055590.89 -2.84 6.13
+3240775.66 +5.68 +185184.77 +0.11 5.38
+3698277.20 +4.60 +3883461.97 +1.58 5.93
+264384.06 +0.35 +4147846.03 +1.29 5.81
+7535399.04 +8.95 +11683245.07 +2.89 4.80
+5474504.24 +6.33 +17157749.31 +3.49 4.63-42022207.50 -46.29-24864458.19 -4.27 6.22
+13964135.67 +8.38-10900322.52 -1.46 5.97
+1662545.58 +0.87-9237776.94 -0.98 5.851968/69
1969/70
1970/71
1971/72
1972/73
1973/74
1974/75
1975/76
1976/77
1977/7853636
53952
57098
80359
75327
84168
86499
90789
166569
192086855.20
512.72
210.14
808.48
163.45
399.00
914.30
574.74
432.48
035.6852868
57776
53857
76661
75062
76632
81025
132811
152605
190423932.20
026.61
434.48
531.28
779.39
999.96
410.06
782.24
296.81
490.10
B.PREFERENTIAL SUGAR1
1977/78 8386803.29 8000954.70 385848.59 +4.60 385848.59 +4.60 2.26
(a)%oflevies
1
sugarfromtheACPcountries,theO.C.T.andIndiaiseligibleunderthegeneralrulesforcompensation ofstoragecosts(Regulation (EEC)No1358/77).

-EA6CFfigirmtM ~(aitioffrnwlarUiti reported In1978
Ailcêsii | ^BreakdownbyMealb«rStat*(nuaberofcasesandMountsInEUA) j
[Nuaber
I.<
casesAaountIn
EUABELGIUM DENMARK 6ERNANT FRANCEjIRELANDITAllLUXCM-
BOURC NETHERLANDS UNITED KINGOOM
Refunds
CEREALS Intervention .!
TOTAL2
LM2
1
_li_271092(2)–lMJ_J
272_UÌ
2
1.2_iuUrrNί<1Λ
AJ1πά6ΔΑI j i*□r i~n 39»
Refunds H
AFff4MbUfAL Interwention 14I
.151I135614
_ni_Mij1504,5JI68147
1367173-16972L___I1rrnr~
TOTAL ]riqi5027B7 I L.jJ_5a.i95.-16
4
_15_4J5l
42206JlllPJ_1697;□-
Refunds 1
MILKANOOAIRYPRODUCTS Intervention !41
I16I42206
75703 1u 1 □tobe
peterainedrrnr~–
TOTAL 11201inqpq 1 L -i?-1117 -909 I 'ΊF-–r 1
Refunds
PIGHEAT_ Interventi on"7 .TOTAL'...L_i!I=*>596 1ULJ 2
"21W!L_ iI n1–
I20596 I I202*6 ii 1I II – 1
WINE Intervention
NON-ANNE*IIPRODUCTS Refunds jr110141 1 J1LijLJO__l_43..J I IIrr– –
155731 L»5j73[2 ):IJ1226îiI I 1r^'m–
OIlSANOFATS Intervention 12?61__I J I ■ 1L_r=-r-i11
EGGSANDPOULTRYMEAT Refunds j1 : 11 Lbd._j I 1!I IPH
~fISHERiPRODUCTS 'Refunds 1cI53B7B I :□_51918 I I 1m 1 1
FRuITANDVEGETABLES Refunds j
TOBACCO _ Intervention
SUGAR Intervention1□7ZT I L_ZD□I I -r~rL4A3il Ir–] lu-4-133 lzjr_inrrmm:~rr–2tv> 1 1 i[__]LZ 1l–
i!422661_ÏJI?6451nmm–
1–
fOQOAID
Refunds
I01AJ InterventionIrI142266 | UJ [ I□Lj–1–
ULJUL_nmnnnnnI !
I
TOTAL II I II I1 IL IL L_ I! Im -^1–
1
MONETARY COMPENSATORY AMOUNTS
irrPCSION COMPENSATORY AMOUNTS[58,1Β04438 1I II51r21638(1)I-3J11470 I_5J26393 1 1r–––nTTxTTTM /ίλI,■I
17*1*->?'/■rrrrjrsiJ L__ 46.655H–––,1'–r
GRANDTOTAL 117]2999928L_LJLÎÎJ [172666«J687859 16769l| 26453tobe|aeteroanmj"H"71706S 17/11rCO!
ofwhichrecovered |52165595B|I;! 1LU|68839[il!681166|LiJ3206^_iJ2^45□3ZI3 70653 64177
NOTESi
T7DK-Including 3casesrelatingtotheco-responsibility levy(10633EUA)
2.B-Including accession compensatory amounts
I3*NL-including refunds-anumberofproducts araInvolved
.4.UK-for10casestheaaounthasyettobedetermined .

ANNEX AI
SUMMARY OFIMPLEMENTATION FORTHE1978FINANCIAL YEAR
(Chapter 92-Community foodaid)
APPROPRIATIONS AVAILABLE mEUA□ IMPLEMENTATION
iImEUA
[A.APPROPRIATIONS FORTHEFINANCIAL YEAR fc.COMMITMENTS
1.Initialappropriations 223.71 1.Totalcomwitments a)222-94
I2.Supplementary budget 2.Automatic carryovers to1979 100.07
3.Transfers (1) 0.49 3.Sumsnotcommitted b) 0.28
TOTAL
I223.72
χTOTAL(a+b)1723.77
Iχ100
B.APPROPRIATIONS FORTHEPREVIOUSI
D.PAYMENTS
FINANCIAL YEAR
-Automatic carryovers from1977 132.371.Application ofcarryovers from1977
-Payments a)fromautomatic carry­
-Non-automatic carryovers from1977overs
b)fromnon-automati c112.83
TOTAL 132.37
ycarryovers
-Lapsed0
19.54
TOTALCARRYOVERS FROM1977 132.37
y37.3
I
2.Application of1978appropriations
a)Payments
b)Carryovers to1979
.automatic carryovers to1979±22.87
100.07
.non-automati ccarryovers to
1979 0
TOTALCARRYOVERS FROM1978TO1979 100.07
3.Appropriations lapsed
.outof1978allocation 0.28
TOTALAPPROPRIATIONS LAPSED 0.28
i r-
1TOTALAPPROPRIATIONS AVAILABLE :355.59 TOTAL 355.591
I ' (x+y)=z Lζ 1 Ζ
I l l
(1)Onetransfer wasmade,affecting thetotalappropriation underChapter92(transfertoChapter95)

ANNEX AII
Cashposition at31December 1978
MEMBER STATEAdvances granted
from1Jan1978to
31Dec1978Amountavailable
at31Dec1977Expenditure from
1Jan1978
to31Dec1978Amountavailable
at31Dec1978Adjustedavailability
at31Dec19781
a b c d=(a+b-c)
BELGIUM ®,F,ÎEUA1311900000
32536168.45-14097544
342461.831077865145
26755903.59219937311
5437803.03219937311
5545192.61
DENMARK
EUA30800000
4398239.870
0291759.50
41294.0130508240.50
4356945.8630508240.50
4378322.75
DMGERMANY j.EUA172800000
67277274.4519530543.72
7462979.88165633853.51
64594625.4026696690.21
10145628.9326696690.21
10595985.02
FBA"CE eSA355500000
62340454.5760001831.03
10599681.85408526562.01
71677616.456975269.02
1262519.976975269.02
1206407.81
IRELANDEUA3858000
5820390.8555176.46
86101.563651085.75
5522377.37262090.71
384115.04262090.71
388158.32
n,LT eSI33300000000
31242163.631450473337
1416560.8732906779417
30659006.891843693920
1999717.611843693920
1661689.11
LUXEMBOURG ^,F,»EUA11350000
277104.940
011339158
280763.6610842
3658.7210842
273.36
NETHERLANDS ^EUA68560000
24834950.511838181.04
651105.3371694205.03
25826074.54-1296023.99
-340018.70-1296023.99
-474029.10
UNITEDKINGDOM^EUA1025000
1700707.500
0952530.23
1462923.5072469.77
23778472469.77
107328.28
|TOTAL EEC/EUA230427454.77 19873967.66 226820585.41 23480837.02 23409328.16
1
EUArateon20Nov1978

;JM2XAIII
EXPEUOITUftE €CLAR_D
Declaredfc»pend.tureinEUA" j|Advancesgranted 1CashavallabteAvallab\lilyad­
justedat20Nov
1978rateIHeaber [ s"" Cereals<a)1NilkndPairy
p.oducts (b)I<c>Sugarandoil
otherexpenditure3TOTAL
<a♦b♦C)«71!(1>(1}J|1-d
fmlûitm I95B7430.^3i9*117037V>->»115*1J0<C,2.25("iM26755903.59 12JE32193706.62 5437603.03 554J»9?.61
IMMM«K I ° O*41294.01 |Iotl 0 41294.01 0*4398239.87 4356945.86 4378322.7j
ICEMMIaT I1591533.49 62-991439.15 55#1 11652.76IlA64594625.40 28*74740254.33 10145628,93 10595985.02
IfXAMiE I606566^7.71 I 9407010.62 8'1«i747.92 9ia71677616.45 32Jtj72940136,42 1262519.97 1206307.81
IUEIAMO O I°*I5522177-37 I5#0 05522377.37 25906492.41 384115.04 388158.32
II1Alt10659006.6928* O !0*1 o 030659OO6.89 14%I3265S724.50 1999717.61 1661689,11
IlUXEHttÛURG | 0 O# ?bo703,66 ]°í 0 0 280763.60 0 277104.94 -3658.72 273.36
INE1M(j)4.«H0S β042467.47!7#17783607-07 I16*! 0 025826074.54 11*25486055.84 |-340018,70 -474029.10
1UNITESXIMSDON 465529.14|O*977194.36"LJj0j1462923.50 |1^j1700707.50 237784 107323.28
Illl222824-93lu»*Ill4041407.55 100*1556152.93lu»*226820585.41 100£250301422,43 |23460837.02 |j23409326.16
L.1 L„=I
Totalexpenditure attheCoaiunUy level(in■EUA) 1
! "1r
j.CEREALS DAIRYPRODUCTS SUGAR ,OTHEREXPENDITURE TOTAL 1
Rhap.92:Worldprices(aEUA):"(including 1
transportcosts) ]111.223j114.041s1.42510.131 II226.820 I
(Title6:Hefunds (■EUA) 61.426 183.301 1(123 245.850 I
lChap.46:Expenditure resulting froatheapplication ofthedualrate(forin-|
forution only) 'I9.441 28,171 0.172 37.786
ICoaaunity expenditure 1182.090 jj325.5152.7200.131 jj510.456 j
(1)including thebalanceavailable on1Jan1978

ANNE!AIV
Co– 1oo4»ia fr–th«Coi
(food«14chatif)nltyludoit
Y«e Product *«IMfttHlCt A«tuntl
u.*.
:Cr«EALSAND«KC
:1968/6*Sehen*
:Beno*i(rt'utttt
s1971/72SchratSOO5*.000
90000.000TOTAL!
u.l.
un?*11.00(D
490?S?».00(D 23710210.00
5CMfALS *X0tlCI
J1969/70SchtfW
I1971/7}ScfcVW
i1972/75(CKN*
-I
IIU6M
t-litCanv*it4«n
•WILKMOMlCTt
I(boughtonwrfe«|)
l
tKG»»0DUCTI
»",L<»»ooûcT*
Ilue.»»
<•1»t(onv«iil1«n339500.000
240234.000
244900.000
SOO00Q
Si510.17522HI041.15ti)
20392530,61 <2>
14919.656.64 (I)
imm.»(t)
2145246.96 (2>
1465Ml.41(1)
21176>66.2J.(1)
1052111.09 C1) 104716179,26
SCfftFALS AHD'MCK
«•1W/N$«*«•
I1971/72 1
t1972/73Seh««*
t1973/74Sch»a»
t7lir•7bouffîtmûrkttV4500.000
103765.000
166612.000
446500.000
46>2.700-105972966.09ttl
652675.97 (|)>V 10»*2V*Mt
CttfALS **<{>»1CI
W*6/*0Scht«
1970/71Schta*
1971/72Sch»a»
1972/73Schvat
1973/74to»m
1974/75Sc»M*
SKIWUP H1UWMMI
Pr*gr««**»prior%%1
1*75profrwMl
•OTTttOtL
Pronr*mmt prt»ft*1
1975prMfMMt
SUMI
-UtC«nv*nt1«i
■Ctif*LS
J970/71
tCfHis4W0iict
I\Ç72/7iSciww
I1973/74fclwa»
I1974/79lctv«M
I1975/76Iclwn
IiOTÎIiOlt
I1974program*
I1975profr«aa*
–♦Wierotìrwe
.K1WHI0wmWWMI
.1974progrpaM
,j1975profrww*
«197*profriMH
l1975pr#«r**o
ICtMAl %AN*AICIIWTTümS
1970/71SchtM
1974/79ScMat
1975/7*StfttM
1976/77(cht«
•CTICIQli .
1974pro«rMM
1975»rtgrtMi
197*progruwo
1977»rg«rMM
SKIHMC*WlLKWWHI
!1975pr«tr«Mt
.197*proarmi
1927pro^rtrnm
1SUGAI
L222lM9Kiset .....401.000
469.500
20001.000
29666.000
12**37.000
909061.000
2*666.000
24106.000
29437.000
6411.000
6094.000
2000.000US9793)9.46 C2>
1219730.69(»
746000.00 (41
29.139266.60 (Il 1*1192354.79
9#121.01(»
9Mô.OOfl
4663.000
120419.000
160620,000
4M.000
Si924.000
7110.000
t630.000
24944.000
11026.000 •
4151.00011147ft995.01<2>
4206470.M(I)
11S677.4*5.69
1400.000
100.000 /
12000.000
906360.000
43*691.000
300.000
701S.000
292*4.000
6200.000
500,000
969*1.000
1250.000
6102.000113*76991.0»<2)
4007545.10 CS»
.117664536.16
225515.23 <6>
197W7»' CEtEAiS«MRICK
•H74/7*Sehe«
1975/76Sch*M
1976/77(Mm
1977/76ScMM
euTTOQit
1975PrefriMt
1976ProariMt
*1977PragrMM
J.1976»ro«r*M*
îMl1™*0W»LK*0W*«t•'4974PrOyl-MM
11975Pro?r*mm
1197*Proçrêam
11977Pro«r«M*
*1976Pro«r«M'!*"6**|Pfqtmm*2000.000
S22*5.000
257774.0ÙO '
55?S95.P0*
50.000
7426.000
335*5.000
11290.000
115.000
5650.000
23536.000
76509.000
22705.000
*142.00022*620565.41 (2)
•199194.26 <S>
295979779.67(S)

-102-
Jx£l_anator£ _no_te_s _to_t_ab_Le AIV
C1)Finalfigurescorresponding toaiddecisions orCommission decisions
ontheclearance ofaccounts .
(2)Provisional figurescorresponding tothemonthlystatements ofthe
MemberStates.
(3)Directpaymentstocertaincountries oragenciesreceiving lump-sum
contributions towardsthecostofforwarding ordistributing goods.
(4)Equivalent of2000tonnesofsugarpaidforincash.
(5)Correction ofthefigures shownunder(2)following theclearance of
accounts forthefinancial year1973.
(6)Correction ofthefigures shownunder(2)following theclearance of
accounts forthefinancial year1974.
(7)Witheffectfrom1January 1978amountsaregiveninEUA,notu.a.
TableAIVgivesanoverallviewoffoodaidgranted bytheCommunity in
eachfinancial yearsincethebeginning ofthescheme.
Thistablecoversonlyaidenteredunderthe"foodaid"headingofthe
Community budget,andexcludes Community foodaidinintervention milk
products financed upto31December 1974bytheEAGGFGuarantee Section.
Uptoandincluding the1974financial yeartheamountscorrespond to
thevalueofthegoodsatCommunity pricesinthecaseofmilkproducts
boughtonthemarket,sugarandeggproducts,whilethefiguresgiven
forcerealsarenetofrefunds .
From1975onwardsallfiguresexcluderefunds.

AHN£XAV
Budgetappropriât ions.1978
C
uA
ft
T
I
C
L
Er r!
1978appropriation »jr r ii i!
IAdvances notusedbyfteaber
i
T
E
IIAdvances to
Me«berStates
including
balances at
31Dec19771978
eipendtture
declared by
MeaberStatesDirect
payments by
CoMission
(1)iAutomatic
carryovers
Art.6<1Hc >
Financial Reft|Statesat31Dec1978
Ρ
Τ
Ε
λProgreaaeCarryovers
froa
1977Entriesi
TOTALUnused
appropriationLapsed
appropriate I EUAEUAadjusted
at20Nov78
Irate
LUL.b ct:■♦b♦c|j.e I9■.IIh«d-(f♦g)1 ï k■Ce-f) I■
92 [foodaid
910EEHEALS I
4200Lefor*19783»995539.14token
•ntryL9.021856.66 49017395.80 «7695922.54|l321473.26
j9201 1978 88800000-*021856.66 79778143,34 63526902.491JB11990.35H4392505014439250.5d
9211Palryproductstoken
entry
76050000I
9210
9211ilefore1978
Skiaaedailkfborder197892374480.52 ♦33834000
-22190000126
53208480.52
860000100119205.8o|
7844;437.321p660053.38
12357877.2722429221.54
43657685613168596.57
43657685.411926062477
9212Butteroil 1978 563400001-11644000 44696000 6077764.33 78003861043S6i38610435,67 !-
922
92205U6«»
beforc1978token
entry
9221 1978 " 152000» 1520000 1425400.68 94599,32 94599.32"
925 Pcherproducts I--- - ■;- ■
924Dtherexpenditure I■
9240 19781000000-490000(2)
|510.000 130952.25 379047,75 100000 27904775
TOTAL 132.370019,66
(3)223710000-490000355590019,6650301422,43226820585.41^159194.26119610ZStyl
'100070567,47 195396725223480837,02 23.409328,16
I1>Contributions andtransport costspaiddirectly bytheCoaaission
(2)Transfer toChspter 95
<3>Or123818213.23u.a.