ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(73)1865
Vol.1973/0331

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(73)1865 final
Brussels.31October1973
PROPOSALFORACOUNCILREGULATION (EEC)
amending-Regulation(EEC)N°/73ontheexchange
ratetobeappliedinagriculturefortheItalianLira
(submittedtotheCouncilbytheCommission)
COM(73)1865final

• y'-WATÔT?YT.IH-'Q'?WHTK
TheapplicationofArticle2ofCouncilHerniation (EEC)No'/73
of•••••ontheexhangeratetobeapplied ,inagriculturefortheItalian
liraiscausingdifficulties intherawtobaccosector.
Inthissectorallthepricesandamountsfixedinu.a.ap^lytothe
cropofagivenyear.Thedeterminingfactortobetakenintoconsideration
forthedetermination oftheexchangerateforanytransactioninthissector
isthereforethecrop.Theprovisionscurrentlyenvisaged(Articles4a^d6
ofRegulation(EEC)No1134/68)leadtoanotherdeterminingfactorwhich
wouldbringaboutundesirable consequences inview,inr>articular,ofthe
delayinmakingfinalpaymentfortransactions forwhichadvanceshavebeen
granted.ThecostwhichtheEAGGPwouldincurisintheorderof10millionu «
Asaresultofthesystemchosen,moreover,thepaymentoftheprevious
fixedforacropdoesnottcieplsceduringthatcronyear.Regulation(EEC)
No1726/701makesprovisionforasystemofsupervisionforleaftobacco
whichhasundergonefirstprocessing andmarketpreparation andiscirculating
intheCommunity,andintroducesapremiumcertificate.Entitlement tothe
premiumisonlyacquiredatthemomentwhenthetobaccoleavestheplacewhere
itwasputundersupervision ,i.e.afterfirstprocessinghasbeencarried
out.
Thepositionisthereforethatatthepresenttimethepremiumhasbeen
grantedinrespectofacertainquantityofthetobaccofrompastcrops,
whilsttheremainingquantities fromthesecropsarestilltobenefitfrom
thispremium.TheapplicationofanewexchangeratefortheItalianlira
would,therefore,resultinaformofdiscrimination
Moreover,sincealltheplantershavealreadyobtainedthepricefor
theirdeliveries ,thebenefitsfromthisoperationwouldnotgotothembut
wouldconstituteanunjustifiedextrapremiumfor50^ofthebuyersofthe
1971cropandforallthebuyersofthe1972and1973crops#
Thiswouldentailanincreaseof10millionu.a.intheexpenditure
oftheEAGGP.

-λ -
β
PROPOSAL FORAREGULATION (EEC )NO /73OFTHECOUNCIL
amending Regulation (EEC)No /73ontheconversion rate tobeapplied ,in
agriculture fortheItalian lira
THECOUNCIL OPTHEEUROPEAN COMMUNITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ;
1)Having regard toCouncil Regulation No.129 onthevalue oftheunit of
aecount and theexchange rates tobeapplied forthepurposes ofthecommon
agricultural policy ,aslastamended byRegulation (EEC)No.2543/73^\
inparticular Article 30)thereof ;
Having regard totheproposal from theCommission ;
Whereas Article 2ofCouncil Regulation (EEC)No./73^^of 1973
ontheconversion rate tobeapplied inagriculture fortheItalian lira
provides fortheapplication ofArticles 4and6ofCouncil Regulation (EEC)
No.1134/68^)of30July1968laying downrules fortheimplementation of
Regulation (EEC)No.653/68onconditions foralterations tothevalue ofthe
unit ofaccount used forthecommon agricultural policy ;
«
Whereas these provisions result inincreases inItalian lire ofallamounts
fixed inunits ofaccount incases where theevent byvirtue ofwhich the
amount becomes payable occurs after 31October 1973 ;
Whereas ,since theprices andamounts fixed fortobacco inunits ofaccount
refer toagiven harvest ,theconversion rate tobeused inaparticular case
should bedetermined byreference totherelevant harvest ;whereas the
aforesaid Article 2should beextended ,byadding aprovision tothis effect ;
HAS ADOPTED THIS REGULATION :
(1)0JNo.106 ,30.10.1962 ,p.2553
(2)0JNo.L263 ,19.9.1973 ,p.1
(3)0JNo.L 1973 ,p.
(4)0JNo.L188 ,1.8.1968 ,p.1

- ι -
Article 1
Article 2(2)ofRegulation (EEC)No. /73isreplaced "bythefollowing :
"2.However
-thesecond subparagraph ofArticle 40)ofRegulation (EEC)No.1134/68
I
shall notapply when therepresentative rate provided forinArticle
l(2)("b )ofthis Regulation comes into force ;
-inderogation from Articles 4and6ofRegulation (EEC)NO.1134/68the
conversion rate tobeapplied toprices ajidamounts fixed inunits of
account inrespect ofraw -tobacco harvested before 1974 shall bethe
rate applicable on31October 1973 »"
Article 2
This Regulation snail enter into force onthedayofitspublication mthe
Official Journal oftheEuropean Communities .Itshall ,apply with effect
from 1November 1973 *
This Regulation shall bebinding initsentirety anddirectly applicable m
allMember States ,
Done atBrussels ,
For the Council
The President