THE MARKET , ON THE OTHER HAND , COULD BE GRANTED ONLY TO ORGANIZATIONS WHICH OPERATED IN CONFORMITY WITH THE PROVISIONS OF REGULATION NO 1035/72 .
6 THE SUMMARY REPORT ALSO STATES THAT THE ITALIAN AUTHORITIES HAD DECIDED TO WITHDRAW RECOGNITION FROM THE FOUR ORGANIZATIONS IN QUESTION , SUCH RECOGNITION BEING NECESSARY UNDER ITALIAN LEGISLATION FOR CONFERRING ENTITLEMENT TO THE AID AND FINANCIAL COMPENSATION REFERRED TO BY REGULATION NO 1035/72 . NONE THE LESS , THE ITALIAN AUTHORITIES CONSIDERED THAT THE FOUR ORGANIZATIONS REMAINED COMPETENT TO CARRY OUT THEIR APPOINTED TASKS UNTIL RECOGNITION WAS WITHDRAWN FROM THEM IN JULY 1981 AND SEPTEMBER 1982 , AND THAT THEY WERE THEREFORE ENTITLED TO FINANCIAL COMPENSATION FOR THE EARLIER YEARS . INDEED , THE ITALIAN AUTHORITIES TOOK THE VIEW THAT IT WAS NOT POSSIBLE EX POST FACTO TO DENY THE LEGALITY OF THE OPERATIONS OR THE LIABILITY OF THE FUND TO BEAR THE EXPENDITURE THEREBY INVOLVED . THE COMMISSION DID NOT SHARE THAT VIEW , ARGUING THAT COMMUNITY AID COULD NOT BE DISBURSED UNLESS THE RECIPIENT FULFILLED THE CONDITIONS FOR PAYMENT .
7 IN ITS APPLICATION TO THE COURT THE ITALIAN GOVERNMENT MAINTAINS , IN THE FIRST PLACE , THAT FOR EACH OF THE FOUR ORGANIZATIONS IN QUESTION THE CONDITIONS LAID DOWN IN ARTICLE 13 OF REGULATION NO 1035/72 WERE SATISFIED . IN THAT CONNECTION IT COMPLAINS IN PARTICULAR THAT THE COMMISSION FAILED TO UNDERTAKE FURTHER INSPECTIONS OF THE FOUR ORGANIZATIONS , WHEREAS OTHER PRODUCERS ' ORGANIZATIONS IN ITALY HAD BEEN SUBJECTED TO REPEATED INSPECTIONS WHICH FINALLY ESTABLISHED THAT THEY WERE OPERATING IN CONFORMITY WITH COMMUNITY LEGISLATION . IN THE SECOND PLACE , THE ITALIAN GOVERNMENT OBSERVES THAT THE WITHDRAWAL OF RECOGNITION OCCURRED AFTER THE FINANCIAL YEARS COVERED BY THE PRESENT ACTION HAD ENDED , AND THAT CONSEQUENTLY THE OPERATIONS WHEREBY THE FOUR ORGANIZATIONS IN QUESTION HAD REMOVED PRODUCTS FROM THE MARKET DURING THE YEARS PRECEDING WITHDRAWAL OF RECOGNITION WERE STILL IN CONFORMITY WITH THE COMMUNITY REGULATIONS .
8 ON THE FIRST POINT THE ITALIAN GOVERNMENT MAINTAINS THAT THE COMMISSION ' S INITIAL FINDINGS ON THE FOUR ORGANIZATIONS WERE BASED ON THE VIEW THAT EVERY PRODUCERS ' ORGANIZATION HAD TO CONCENTRATE THE SUPPLY OF PRODUCTS FROM ITS MEMBERS AND TO MARKET THOSE PRODUCTS ITSELF . THAT VIEW WAS , HOWEVER , ABANDONED BY THE COMMISSION , WHICH FINALLY CONCEDED THAT SALES MIGHT BE TRANSACTED BY THE PRODUCERS THEMSELVES IF THEY OBSERVED THE CONDITIONS LAID DOWN BY THE ORGANIZATION . THAT BEING SO , THE OPERATIONS OF THE FOUR ORGANIZATIONS COMPLIED WITH ARTICLE 13 OF REGULATION NO 1035/72 . IN ANY EVENT , THE WITHDRAWAL OF PRODUCTS FROM THE MARKET , IN RESPECT OF WHICH THE FINANCIAL COMPENSATION WAS GRANTED , CONTRIBUTED FULLY TO THE ATTAINMENT OF THE OBJECTIVES PURSUED BY THE REGULATION .
9 THE COMMISSION BEGINS BY EXPRESSING ITS SURPRISE AT THE ITALIAN GOVERNMENT ' S POSITION , INASMUCH AS THE ITALIAN GOVERNMENT ITSELF WITHDREW RECOGNITION FROM THE FOUR ORGANIZATIONS ON THE GROUND THAT THEY DID NOT SATISFY THE CONDITIONS ENABLING THEM