COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(89) 301 final 
Brussels, 16 June 1989 
Proposal for a 
COUNCIL REGULATION (EEC) 
amending Regulation (EEC) No 1277/84 laying down general rules 
for the system of production aid for processed fruit and 
vegetables 
(presented by the Commission) 
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EXPLANATORY MEMORANDUM 
Subject: Council Regulation (EEC) amending Regulation (EEC) No 1277/84 
laying down general rules for the system of production aid for processed 
fruit and vegetables. 
The aim of the above-mentioned regulation is to introduce two 
amendments to the regulation laying down general rules for the 
system of production aid in this sector. 
The first of these measures relates to the laying down of a maximum 
ceiling for the levels of production aid which may be paid for tinned 
peaches and pears,in order to ensure that the production aid is not 
greater than the difference between the minimum price paid to the 
community grower and the price paid by competing third country 
processors for a comparable quality of raw material. 
The second measure provides for the neutralIsing,by means of a system 
of monetary adjustment,of the monetary gaps which may arise dulng the 
the course of a marketing year between the green rates and the market 
rates of the various Community currencies. 
The aim of this system Is to re-establish an element of 
competitiveness on Community markets and those of Importing third 
countries. 

Proposal for a 
COUNCIL REGULATION (EEC) 
amending Regulation (EEC) No 1277/84 laying down general rules 
for the system of production aid for proceaaed fruit and vegetables 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Economic Community, 
Having regard to Council Regulation (EEC) No 426/86 of 24 February 1986 on the 
common organization of the market in products processed from fruit and 
vegetables (1), as last amended by Regulation (EEC) No 1125/89 (2), and in 
particular Article 5(4) thereof, 
Having regard to the proposal from the Commission, 
Whereas the calculation of production aid pursuant to Article 5 of Regulation 
(EEC) No 426/86 must take account of the price in third countries; whereas, 
in order to assess that factor properly in the case of peaches and pears in 
syrup and/or in natural fruit juice, the farm-gate prices actually paid in the 
main producing and exporting third countries on the world market for raw 
material of a quality comparable to that of fresh Community products used for 
processing should be taken into account; whereas, however, when that price is 
recorded, the figures should be weighted on the basis of actual exports of 
finished products from the producing countries concerned on the world market; 
(1) OJ No L 49, 27.2.1986, p. 1. 
(2) OJ No L 118, 29.4.1989, p. 29. 
- 2 -
Whereas currency movements of the different national currencies may, in the 
absence of specific monetary compensatory mechanisms for this sector, result 
in distortion between producers in certain Member States; whereas provision 
should be made, in accordance with a suitable decision-making procedure, for 
the possibility of using a system of monetary adjustment if this proves 
necessary to ensure normal conditions of competition; 
Whereas Regulation (EEC) No 1277/84 should be amended accordingly (3), 
HAS ADOPTED THIS REGULATION: 
Article 1 
The following paragraphs are hereby added in Article 3 of Regulation (EEC) 
No 1277/84: 
s 
"7. For peaches and pears in syrup and/or in natural fruit juice, the 
production aid calculated pursuant to the provisions of this Regulation 
may not exceed the difference between the minimum price paid to the 
Community producer and the price of the raw material in the main producing 
and exporting third countries. 
(3) OJ No L 123, 9.5.1984, p. 25. 
4-
- 3 -
That latter price shall be determined on the basis of farm-gate prices 
actually applying to fresh products of comparable quality used for 
processing, weighted according to the quantities of finished products 
exported by those third countries on the world market. 
8. The Commission may, in accordance with the procedure laid down in Article 
22 of Council Regulation (EEC) No 426/86 , introduce a system of monetary 
adjustment which takes account of the impact of actual exchange rates on 
the prices of the products in question in the various Member States. 
*0J No L 49, 27.2.1986, p. 1." 
Article 2 
This Regulation shall enter into force on the day of its publication in the 
Official Journal of the European Communities. * 
This Regulation shall be binding in its entirety and directly applicable in 
all Member States. 
Done at , For the Council 
FINANCIAL STATEMENT -EN ADD. (PTRA-522) 
Date: 26 May 1989 
Appropriations: ECU 226 million 1. Budget heading: 1512 
2. Title: Amendment to Regulation (EEC) No 1277/84 laying down general rules for 
the system of production aid for processed fruit and vegetables 
3. Legal basis: Article 5(4) of Council Regulation (EEC) No 426/86 of 
24 February 1986 
4. Aims of project: With a view to complying with certain undertakings which the 
Community entered into with certain non-member countries within the GATT, 
production aid for tinned peaches and pears must be limited to no more than the 
difference between the minimum Community price and the cost of the raw materials 
in the competing non-member countries. 
5. Financial implications 
5.0 Expenditure 
- charged to the EC budget 
(refunds/intervention) 
- national administration 
- other 
5.1 Receipts 
- own resources of the EC 
(levies/customs duties) 
- national 
5.0.1 Estimated expenditure 
5.1.1 Estimated receipts period of 
12 months 
ECU 26,7 
million current 
financial year 
(1989) following 
financial year 
(1990) 
- ECU 26,7 
million 
5.2 Method of calculation: 
Aid with current legislation 
Aid after amendment Peaches Pears 
ECU 147,8/t ECU 197,3/t 
ECU 107,1/t ECU 181,7/T 
Calculation of lower expenditure compared with current regulations 
Peaches in syrup (147,8 - 107,1) x 582 000 t x 1,054 (DR) = ECU 25,0 million 
Pears in syrup (197,3 - 181,7) x 102 800 t x 1,054 (DR) = ECU 1,7 million 
The monetary adjustment system for production aid for peaches and pears in syrup 
and/or in natural juice has negligible impact on the budget. 
6.0 Can the project be financed from appropriations entered in the relevant chapter 
of the current budget ? yes 
6.1 Can the project be financed by transfer between chapters of the current budget ? 
yes/no 
6.2 Is a supplementary budget necessary ? 
6.3 Will future budget appropriations be necessary ? no 
yes 
Observations : 
1. As a guideline, appropriation requirements in tne 1990 preliminary draft budget are 
peaches in syrup : ECU 86,6 million 
pears in syrup : ECU 19,7 million 
c 
Commission of the European Communities 
COM(89) 301 final 
Proposal for a 
COUNCIL REGULATION (EEC) 
amending Regulation (EEC) No 1277/84 laying down general rules for the 
system of production aid for processed fruit and vegetables 
(submitted to the Council by the Commission) 
16.6.1989 
Office for Official Publications of the European Communities 
L - 2985 Luxembourg 
Series: DOCUMENTS 
1989 — 6 pp. — Format: 21.0 * 29.7 cm 
EN 
ISSN 0254-1475 
ISBN 92-77-51117-6 
Catalogue number: CB-CO-89-256-EN-C 
ISSN 0254-1475 
COM(89) 301 final 
DOCUMENTS 
Proposal for a 
COUNCIL REGULATION (EEC) 
amending Regulation (EEC) No 1277/84 laying 
down general rules for the system of production 
aid for processed fruit and vegetables 
(submitted to the Council by the Commission) 
03 
Catalogue number: CB-CO-89-256-EN-C 
ISBN 92-77-51117-6 16.6.1989 
€ 
COMMISSION OF THE EUROPEAN COMMUNITIES