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DOCUMENTS "COM"
COM(74)552
Vol.1974/0094

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COMMISSION QFTHB£
COM(74)552 Final
Brussels ,18April 1974
Proposed
REGULATION (EEC )OFTHECOUNCIL
laving down special measures for soya "beans
(submitted totheCouncil "bytheCommission )
COM(74 )552Final

EXPLAITATORY KEMCRA3ÎDUM
During itslast meeting theCouncil decided toadopt aspecial system for
setoutinCommission proposal (Doc .COM (74)30final ,proposal No.XIII
amended "byDoc .COM (74)19^final ).Taking into consideration theCouncil' s
decision ,theCommission proposes asimplified system ofsupport forthe
Co::imtinity production ofsoyabeans within this draft regulation proposal .
This proposal will replace theCommission proposal setout inthedocuments
quoted above .
Financial Incidence
Prom thepoint ofview cffinancial incidence ,this proposal isanalogous
with theone setout intheproposal foragricultural prices .Forthis reason
theproposal involves noadditional financial incidence .
Thepossibility istobeconsidered ,therefore ,ofgranting asubsidy for
soyabeans ficed atasimilar level tothat forrapeseed andsunflowerseed .
Onthebasis ofcurrent prices tho subsidy would bo0.But intheevent of
afall inthewoild price the subsidy could bearound 30 "to40u.a .perton .
Forthe1974/1375 marketing year this would result inanexpenditure ofbe­
tween 240^000 u.a .and3?0;000u.a .
(4,000 hectares of2tonnes «8,000 tonnes multiplied by30-40u.a.)
A^theproposed regulation istoapply from 1November 1974 »itistobeex­
pected that part oftheexpenditure will befinanced during the1975 finan­
cial year .
Ey1978 ,thesurface area isexpected tohave increased topOjOOO hectares .
Expenditure have increased to3-4million u.a .
Theexpenditure isconsidered ,asintervention .Foritsfinancing aCouncil
regulation will beproposed inafewweeks amending theAnnex toregulation
2824/72.
Theexpenditure istobecharged under Article 633 (oils andfats interven­
tion )oftheBudget oftheEuropean Communities .
Article ô33 î Budget Cred.it s Consumât ionencouraging theproduction ofsoya bygiving supporycorresponding tothat supporte
1973 64,610.000 )
+I5.IO3.OOO )79,705.000
Proposod payment
1974 72.500.000

Proposed
REGULATION (EEC)»-VOFTHECOJ1TCIL
layingfovrnspecialmeasuresforsoya"beans
THECOUITCILOPTHEEUROPEANCOMITOTITHS ,
Havingregard "totheTreatyestablishing theEuropeanEconomicCommunity #and
inparticularArticle43thereof;
HavingregardtotheproposalfromtheCommission ;
Whereastheproductionofsoyabeansisbecomingincreasingly interestingfor
thefarmersoftheCommunity;whereas,inordertopromotethedevelopmentof
thisprediction,whichissubjectedtodirectcompetition fromthesamebeans
impov'edfromthirdcountriesdutyfreerappropriatemeasuresofsupportshoxild
beprovidedfor;. .'v■■
WhereastothisendthemarketingofCommunitycropsmustensureproducersa
fairincome,thelevelofwhichmaybedefined ,byatargetprice.;.whereasthe-
differencebetweenthispriceandthepriceascertainedforthebean?onthe
worldmarketrepresentsthesubsidywhichshouldbegrant,edinordertoachieve
theobjectivepiirs-aedy . •
WhereasexpenditureincurredbyMemberStatesasaresultoftheobligations
arisingfromtheapplicationofthisRegulation .shouldbecomeachargeonthe
Communityinaccordancewiththeprovisiononthefinancingofthecommon
agricultural policy,
HASifflOPTEDTHISREGULATION :

-2-
Article 1
1.Each year before 1August ,atarget price forsoya beans listed under Comnon
Customs Tariff heading 12,01 shall befixed fortheCommunity according to
theprocedure laid down inArticle 43(2)oftheTreaty#
This price shall fixed atalevel which isfair toproducers ,account "being
taken ofthe supply requirement a."ofthe^;Ccraiiramity.t v.-.v.-:<•••>' *
2.Tluj .tar^t ui-ioo chc.ll r;.:.ainiufere :throuf.hrut the *
follct.-ihs marketing ycer ;this shall last fror .:11-Iove :i.'o<rto
31October , :
3.Thetarget price shall relate toastandard quality *This quality shall be
determined bytheCouncil according totheprocedure referred tointhe
first sub-paragraph .
Article 2
1.When thetarget price ,calculated foraCommunity frontier crossing point
\ . ;■ • ishigher
thai ,theworld market price ,asubsidy equal tothedifference between these
■twoprices shall begranted forsoya beans harvested andprocessed within
theCommunity®
2#TheCouncil ,acting byqualified majority onaproposal from theCommission ,
shall laydown :
a)thecriteria forthedetermination oftheworld market price ;
b)thegerar^r rules according thwhich thesubsidy shall begranted ,aswell
•asthose concerning thecontrol ofbeans harvested within theCommunity
with aview toestablishing their eligibility forthesubsidy ^
c)theconditions tinder which advance fixing ofthesubsidy maybeallowed#
3#Theamount ofthesubsidy shall befixed bytheCommission#
4#Detailed rules fortheapplication ofthis Article shall beadopted accor­
ding totheprodedure laid down inArticle 38ofRegulation 136/66/EEC#
Article 3
Member States andtheCommission shall communicate toeach other theinformation
necessary fortheapplication ofthis Regulation .This information shall be
decided upon inaccordance with theprocedure laid down inArticle 38ofRegu­
lation 136/66/EEC.Detailed rules concerning thecommunication anddissemination
ofthis information shall beadopted inaccordance with thesame procedure#

-3-
Article4
Theprovisions oflthefinancingofthecommonagricultural policyshallapply
tothesubsidysystemprovidedforinthisRegulationfrom1November1974*
Article5
ThisRegulationshallenterintoforceonthethirddayfollowingitspublica­
tionintheOfficialJournaloftheEuropeanEommunities.
ItsMillbeapplicablefrom1November1974*
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicablein
allMemberStates#
DoneatBrucsels, FortheCouncil
ThePrésident