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DOCUMENTS "COM"
COM(81)90
Vol.1981/0027

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(81)90 final
Brussels,9March1981
Proposal fora
COUNCIL REGULATION (EEC)
fixingforthe1981/82marketing yeartheguidepricefor
unginned cottonandthequantity ofcottonforwhichaid
maybegrantedwithoutreduction
,/Y/c\c->'M,
(submitted totheCouncil bytheCommission )
A
V\
C0M(81)90final

EXPLANATORY MEMORANDUM
1„Protocol 4oncottonintheActofAccession ofGreeceprovides forthefixing
eachyearofaguidepriceforcottonthathasnotbeenginned (paragraph 8)andof
thequantity produced forwhichaidwillbegranted (paragraph 9)*
Thepurposeofthepresentproposal istofixtheguidepriceandthisquantity of
unginned cottonforthe1981/82marketing year*
Asstatedintheexplanatory memorandum tothepricesandaidpackage (Doc„COM81,
p.,42),itisforpurelytechnical reasonsthatthisproposal hasnotbeenpresen­
tedalongwiththeotherCommission proposals totheCouncil onagricultural prices
andaidfor1981/82«
2,Onthebasisofthecriteria laiddowninProtocol 4theCommission proposes aguide
priceforunginned cottonof73,50ECUper100kg„Thispriceisbasedontheprice
(1)guaranteed toGreekproducers in1980/81(99%ofCommunity production isin
Greece )
Theproposedpriceshouldassureproducers anincomesome10%higherthantheir
guaranteed incomeunderthenationalprovisions inforceduringtheprevious marke­
tingyear.,Producers willprobably notreceivetheguidepricebutalowerfigure,
onaccountoftransport costsandmarketfluctuations *
A10%increase intheproducerpriceisjustified inviewoftheincrease proposed
foralternative cropswhichcompetewithcotton,,
3„Underthecriterialaiddowninparagraph 3oftheProtocol thequantity towhich
areduction coefficient doesnotapplymustliebetween323000and567000tonnes*
Itshouldbenotedthat:
(a)assowingfor1981/82willundernormalconditions bedonebeforethisproposal
isadoptedbytheCouncilitisappropriate totakeaccountofthefactthat
theproducers haveannounced intendedsowingsof165000hectares,thisbeing
anacceptable figure;
(1)MinimumpricesinGreece :1978
1979
1980Dra25*5perkg
Dra30„0perkg
Dra38*0perkg=63*63ECU/100kg

(b)ayieldof2600kgofunginned cottonperhectareisareasonable average
forGreeceifoneoverlooks abnormally suitable orunsuitable conditions for
vegetation *
(c)account hastobetakenofnormalvariations inyieldperhectare andconsequent­
lyofproduction -,
Itisproposed inthesecircumstances tofixthequantity at460000tonnes*
4*Financial aspects.
Appropriations amounting to33*32million ECUareenteredinArticle 736(EAGGF,*
Guarantee )ofthe1981budgettofinanceaidforproduction ofunginned cotton*
However,nogeneralrulesforfinancing thisaidhaveyetbeenadopted*Theyareto
belaiddowntogether withthegeneralrulesfortheaidsystemprovided forin
paragraph 9oftheProtocol *
ANNEX
Communityproduction_of_un22Q0££L£2i£2G
(2)Greece Italy EEC
Ha Production(t )HaProduction(t )HaProduction(t )
1978 168000 451000 2182 2767 170182 453769
1979 137500 3200002770 3266 140270 323266
1980 143000 3600002940 3538 145950 363538
0 149500 377ooci 2297 3191 152134 380191
(2)Commission estimatearrivedb£applying acoefficient of3*125(estimated' yield
of32%)toactualfibreproduction at886,1045and1132trespectively *

proposal fora
COUNCIL REGULATION (EEC)
fixingforthe1981/82marketing yeartheguidepriceforunginned cottonandthe
quantity ofcottonforwhichaidmaybegrantedwithoutreduction
THECOUNCIL OFTHEEUROPEAN COMMUNITIES ,
HavingregardtotheTreatyestablishing theEuropean Economic Community,
HavingregardtotheActofAccession ofGreece,andinparticular paragraphs 8and
9ofProtocol 4oncotton,
Havingregardtotheproposal fromtheCommission ,
(2)HavingregardtotheopinionoftheEuropean Parliament ,
Havingregardtotheopinion ,oftheEconomicandSocialCommittee^,
Whereasparagraph 8ofProtocol 4statesthattheguidepriceforcottonthathasnot
beenginnedistobefixedannually byreference tothecriterialaiddowninpara­
graphs2and3ofthatProtocol^and paragraph 9ofProtocol No4statesthatthequan­
tityofcottonforwhichaidshallbegrantedistobefixedannually byreference
tothecriterialaiddowninparagraph 3oftheProtocol;
Whereasreference tothesecriteriagivestheguidepriceandquantityofcotton
indicated below,
HASADOPTED THISREGULATION :
(2)OJNoC
(3)OJNoC

-2-
Article 1
1„Forthe1981/82marketing yeartheguidepriceforunginned cottonshallbe
73.50ECU/100kg*
2*Thepricereferredtoinparagraph 1shallbeforcotton:
-withamoisture contentof14%andofextraneous matter3%;
-withthecharacteristics required toyieldginnedcottonwithafibrelength
of28mmandmeetingInternational Standard No5„
Article2
1„Forthe1981/82marketing yearthequantity ofcottonreferred tointhethird
sub-paragraph ofparagraph 3ofProtocol 4shallbe460000tonnes*
2„The .quantity ofcottonreferred toinparagrah 1shallbeunginned cottonofthe
qualityindicated inArticle 1(2).
Article 3
ThisRegulation shallenterintoforceonthedayofUspublication intheOfficial
JournaloftheEuropean Communities *
ThisRegulation shallbebindinginitsentirety anddirectlyapplicable inall
MemberStates-
Doneat FortheCouncil

FINANCIAL STATEMENT
Date:16*2*1981 ·Η
1.BUDGETHEADING: APPROPRIATIONS : ^'JJ/Ju1ECU
2.TITLE:proposalforCouncilRegulation fixingforthe1981/82marketing y
theguidepriceforunginnedcottonandthequantityofcottonforwhichaiil
begrantedwithoutreduction * :far,
may
3.LEGALBASIS:Protocol No4oftheActofAccession ofGreece* i
4.AIMSOFPROJECT :T , . 'Tofixtheguidepriceandthequantityofcottonforwhich¿id
maybegrantedwithoutreduction *
η
5.FINANCIAL IMPLICATIONS
5.0EXPENDITURE
-CHARGED TOTHEECBUDGET
INTERVENTIONS )
-NATIONAL ADMINISTRATION
-OTHER
5.1RECEIPTS
-OWNRESOURCES OFTHEEC
(LEVIES/CUSTOMS DUTIES)
-NATIONALPERIOD OF12MONTHS CURRENT FINANCIAL YEAR
(81)FOLLOWING FINANCIAL VEAR
( 5mi'
47,2MioECU28,3MioECU 18,9MioECU
5.0.1ESTIMATED EXPENDITURE
5.1.1ESTIMATED RECEIPTS
5.2METHOD OFCALCULATION
-165OOOhaxaverageyieldof2600kg/ha=429000t
-Difference betweenguidepriceandworldmarketprice
-Paymentofaidasfollows :3/5in1981
restin1982110ECU/t
0CANTHEPROJECT BEFINANCED FROMAPPROPRIATIONS ENTEREDINTHERELEVANT CHAPTER OFTHECURRENT BUDGET .
VES/ggn
1iHsaraBraHiRajiiiJiwuEmGffliKMmi»nMimci«MíHDtiHflminM8tfi ?iflttti
|«*»ιι
0.3WILLFUTURE BUDGETAPPROPRIATIONS BENECESSARY ?
OBSERVATIONS :Thefinancialprovisionslaiddowninparagr^h9(d)ofthePrdjjocol
No4arenotadoptedattheverymomentoftheproposalofthi|finan
cialstatement-