15.3.75 Official  Journal  of the  European  Communities No C 62/19 
and the  bilateral  arrangements  between  the  Community  and  a number  of East  Asian  developing 
countries  which  derive  from  it. If the  Economic  and  Social  Committee  does  not  comment  on 
this matter  now,  then  it will  be too  late,  as it is in these  next  few  months  that  the  Council  of 
Ministers  will  be discussing  the  mutual  allocation  of quotas  among  the  Member  States  and  the 
Commission's  general  negotiating  brief  for  the  start  of the  abovementioned  negotiations. 
Result  of the vote 
for: 19 
against:  35 
abstentions:  16. 
Opinion  on the 
— proposal  for a Directive  completing  the provisions  under  Title  V of the  Directive  on 
mountain  and  hill  farming  and  farming  in certain  less-favoured  areas  which  was 
adopted  by the Council  on 21 January  1974 
— proposals  for  Directives  concerning  the  Community  list  of less-favoured  farming 
areas  within  the meaning  of the Directive  on mountain  and  hill  farming  and  farming 
in certain  less-favoured  areas,  adopted  by the Council  on 21 January  1974 
The text  referred  to "the  Committee  has  not  been  published  in the Official  Journal  of the 
European  Communities. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 7 January  1975,  the  Council  referred  the  abovementioned  proposals  to the 
Economic  and  Social  Committee  under  Article  198  of the  Treaty  establishing  the 
European  Economic  Community. 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  drew  up its Opinion  at its 127th  plenary  session, 
held  in Brussels  on 29 and  30 January  1975. 
The Opinion  is published  below: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the  referral  on 7 January  1975  by 
the Council  of the European  Communities; 
Having  regard  to Articles  43 and  198  of the  Treaty 
establishing  the European  Economic  Community; Having  regard  to the  decision  taken  by its Bureau 
instructing  the Section  for Agriculture  to draw  up an 
Opinion  on the  matter  under  the  urgency  procedure 
(Articles  46 and  47 of the Rules  of Procedure); 
Having  regard  to the  oral  report  made  by  the 
Rapporteur,  Mr Berns; 
No C 62/20 Official  Journal  of the European  Communities 15. 3. 75 
Having  regard  to the Opinion  adopted  by the Section 
for Agriculture  at its meeting  on 16 January  1975; 
Having  regard  to the discussions  at its 127th  plenary 
session  of 29 and  30 January  1975  meeting  of 30 
January  1975, 
HAS  ADOPTED  THE  FOLLOWING  OPINION 
unanimously  with  10 abstentions: 
The Committee  approves  the  proposals,  subject  to 
the following  comments: 
1. The  Council  Directive  of 21 January  1974  'on 
mountain  and  hill  farming  and  farming  in certain 
other  less-favoured  areas'  is to take  effect  on the day 
that the  Council  adopts  the  Community  list  of 
less-favoured  agricultural  areas  and  decides  what 
proportion  of the  compensatory  allowance  will  be 
paid by the  Community.  The  Commission's  present 
proposal  is thus  the vital  precondition  for application 
of the Directive  in question,  something  to which  the 
Economic  and  Social  Committee  assigns  fundamental 
importance. 
2. When  it adopted  the  Directive  in question  the 
Council  took  account  to a substantial  extent  of the 
relevant  Committee  Opinion  of 27  June  1973, 
particularly  as regards  the  criteria  to be used  in 
identifying  the less-favoured  agricultural  areas.  The 
Committee  also  notes  that  the  quantitative  criteria 
established  by the  Commission  for  these  areas  take 
heed  of the  diversity  of the  situations  prevailing  in 
the Community's  various  handicapped  farming  areas. 
3. The  Committee  deplores  the  inclusion  by the 
Council  in the Directive  of the stipulation  (paragraph 
2 of Article  6.1)  that  farmers  receiving  a pension 
under  a retirement  scheme  will  cease  to be eligible  for 
the compensatory  allowance.  The  Committee  feels 
that this  stipulation  will  run  counter  to  the 
objectives  of the Directive  in cases  where  there  is no 
heir willing  to take  over  the  running  of the  farm. 
Consequently  paragraph  2 of Article  6.1  should  be 
amended. 4. The  Commission  proposes  that  the 
Community's  share  of the  eligible  expenditure  on 
compensatory  allowances  be set at 50 %, that  is to 
say at the  highest  level  allowed  by the  Council 
Directive. 
The Committee  considers  that  the Guidance  Section 
of the EAGGF  must  refund  50 % of expenditure  on 
compensatory  allowances,  in order  to stimulate 
effective  implementation  of the  Directive  in the 
less-favoured  Community  regions. 
5. In  addition,  the Committee  considers  that  a lack 
of infrastructure  in these  areas  will  not  preclude 
immediate  implementation  of the  measures  designed 
to improve  farm  incomes. 
6. As  regards  selecting  the areas  to receive  aid,  the 
Committee  considers  that  the list of underprivileged 
areas  which  are  threatened  with  depopulation  and 
whose  natural  environment  should  be  conserved 
must  be re-examined  regularly  in order  to take 
account  of socio-economic  and  demographic  changes 
in the  various  Community  agricultural  areas.  It 
should  not  be an immutable  rule  that  there  must  be 
both  a low  population  density  and  unfavourable 
production  conditions.  Moreover,  it would  be 
desirable  if the criteria  used  in selecting  — and,  in 
particular,  demarcating  — the  hill  and  mountain 
areas  and  the  less-favoured  areas  were  also  to take 
account  of the  fact  that  poor  land  is taken  out  of 
farming  more  quickly  in,  for  instance,  the  more 
densely  populated  areas,  although  farming  should 
continue  on  environmental  grounds.  When  the 
relevant  criteria  are reviewed,  it will  be important  to 
remedy  any  omissions  from  the  list  of hill  and 
mountain  areas,  and/or  to attenuate  the  hardship 
which  is liable  to arise  in areas  bordering  on the 
less-favoured  areas  appearing  on the official  list. 
7. In  view  of the rapidly  increasing  cost  of inputs 
and investment  in agriculture,  both  the amount  of the 
compensatory  allowance  and  the  limits  on 
Community  participation  in infrastructure  investment 
must  be updated  at regular  intervals,  so that  the aids 
remain  an effective  instrument  for  furthering  the 
objectives  of the Directive. 
15.3.75 Official  Journal  of the European  Communities No C 62/21 
8. The  Committee  further  considers  that  in the 
near future  the interventions  set out in this  Directive 
should  be coordinated  with  those  arising  out  of the 
regional  development  policy  and  the draft  Regulation 
on priority  agricultural  regions,  whose  adoption  is to 
be desired. Done  at Brussels,  30 January  1975. 
The Chairman 
of the Economic  and  Social  Committee 
Henri  CANONGE 
Opinion  on the 
— Commission  report  to the  Council  on the  situation  regarding  the production  and 
marketing  of hops  for the 1973  harvest 
— proposal  for a Council  Regulation  laying  down,  in respect  of hops,  the amount  of 
aid to producers  for the 1973  harvest 
The text  referred  to the Committee  was  published  in Official  Journal  of the European 
Communities  No  C 147  of 26 November  1974,  pages  14 and  15. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 13 November  1974,  the Council  referred  the  abovementioned  documents  to the 
Economic  and  Social  Committee  under  Article  198  of the  Treaty  establishing  the 
European  Economic  Community. 
B. OPINION  OF THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  drew  up its Opinion  at its 127th  plenary  session, 
held in Brussels  on 29 and  30 January  1975. 
The Opinion  is published  below: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the referral  on 13 November  1974 
by the Council  of the European  Communities; 
Having  regard  to Articles  47 and  198  of the Treaty 
establishing  the European  Economic  Community; Agriculture  to prepare  the Committee's  work  on the 
matter; 
Having  regard  to its past  work  in this  field  and,  more 
specifically,  its Opinion  of 23 June  1971  (*) 
Having  regard  to the  report  submitted  by  the 
Rapporteur,  Mr Bernaert; 
Having  regard  to the decision  taken  by its Bureau  on 
26 November  1974  instructing  the  Section  for