, 1972 ( III ), P . 831 ).
7 ACCORDING TO THE PREAMBLE TO REGULATION NO 1674/72 , THE AID MAY BE GRANTED ONLY FOR THE PRODUCTION OF BASIC SEED OR CERTIFIED SEED AND THOSE PRODUCTS SHOULD BE CLEARLY DEFINED ( SECOND RECITAL ); MOREOVER , IF THE SYSTEM OF AID IS TO FUNCTION PROPERLY , A SUPERVISION SYSTEM IS NEEDED TO ENSURE THAT AID IS GRANTED ONLY IN RESPECT OF PRODUCTS QUALIFYING FOR IT ( FIFTH RECITAL ). THE REGULATION THEREFORE PROVIDES THAT BASIC SEED AND CERTIFIED SEED MUST BE PRODUCED EITHER UNDER DULY REGISTERED GROWING CONTRACTS OR DIRECTLY BY THE SEED ESTABLISHMENT OR THE BREEDER . IN THE LATTER CASE , PRODUCTION IS TO BE ATTESTED BY A GROWING DECLARATION , WHICH MUST ALSO BE DULY REGISTERED . MOREOVER , THE SEED ESTABLISHMENTS AND BREEDERS MUST ALSO BE OFFICIALLY APPROVED OR REGISTERED . THE MEMBER STATES ARE UNDER AN OBLIGATION TO INTRODUCE A SYSTEM OF ADMINISTRATIVE SUPERVISION TO ENSURE THAT THE CONDITIONS REQUIRED FOR THE GRANT OF AID ARE FULFILLED ( ARTICLES 2 , 3 AND 5 OF THE REGULATION TAKEN TOGETHER ).
8 FINALLY , ARTICLE 3 OF REGULATION NO 1686/72 PROVIDES THAT AID IS TO BE GRANTED TO THE SEED GROWER IN RESPONSE TO AN APPLICATION SUBMITTED AFTER THE HARVEST .
2 . THE FEED AID SCHEME
9 THIS SCHEME IS DEFINED IN COUNCIL REGULATION ( EEC ) NO 1119/78 OF 22 MAY 1978 LAYING DOWN SPECIAL MEASURES FOR PEAS AND FIELD BEANS USED IN THE FEEDING OF ANIMALS ( OFFICIAL JOURNAL 1978 , L 142 , P . 8 ). ACCORDING TO THE FIRST RECITAL IN THE PREAMBLE TO THAT REGULATION , THE PRODUCTION OF PEAS AND FIELD BEANS INTENDED FOR ANIMAL FEED IS OF INCREASING IMPORTANCE TO THE COMMUNITY AND , IN ORDER TO ENCOURAGE THE DEVELOPMENT OF THIS PRODUCTION , WHICH IS SUBJECT TO DIRECT COMPETITION FROM PRODUCTS IMPORTED FROM OUTSIDE THE COMMUNITY , IT IS NECESSARY TO PROVIDE FOR APPROPRIATE SUPPORT MEASURES . MOREOVER , ARTICLE 1 ( 1 ) OF THE REGULATION PROVIDES FOR THE GRANT OF AID FOR ' PEAS , EXCLUDING CHICK PEAS , FALLING WITHIN SUBHEADING 07.05 B I OF THE COMMON CUSTOMS TARIFF ' AND FOR ' FIELD BEANS FALLING WITHIN SUBHEADING 07.05 B III OF THE COMMON CUSTOMS TARIFF ' . THE AID IS TO BE GRANTED FOR PEAS AND FIELD BEANS ' HARVESTED IN THE COMMUNITY WHICH ARE USED IN THE MANUFACTURE OF ANIMAL FEEDINGSTUFFS ' . ACCORDING TO ARTICLE 2 ( 2 ), ' AID SHALL BE GRANTED ONLY TO MANUFACTURERS OF ANIMAL FEEDINGSTUFFS WHO SATISFY THE CONDITIONS NECESSARY TO QUALIFY FOR AID ( AND ) HAVE CONCLUDED CONTRACTS WITH PRODUCERS OF PEAS AND FIELD BEANS OR OTHER NATURAL OR LEGAL PERSONS PROVIDING FOR THE PAYMENT TO SUCH PRODUCERS OF A PRICE NO LOWER THAN THE MINIMUM PRICE . THE MINIMUM PRICE SHALL BE FIXED AT A LEVEL WHICH . . . ENABLES PRODUCERS TO OBTAIN A FAIR RETURN ' . ACCORDING TO