REGULATIONS NOS 2792/77 AND 2917/77 DEPENDS UPON THAT OF REGULATION NO 2604/77 .
FIRST SUBMISSION : INFRINGEMENT OF ARTICLE 1 ( 3 ) OF REGULATION NO 974/71 OF THE COUNCIL OF 12 MAY 1971 AS AMENDED ; MANIFEST ERROR IN THE ASSESSMENT OF THE CONDITIONS AND DISTORTION OF THE FACTS
8THE ITALIAN GOVERNMENT STATES THAT UNDER ARTICLE 1 ( 2 ) OF REGULATION NO 974/71 MONETARY COMPENSATORY AMOUNTS MAY BE APPLIED :
( A ) TO PRODUCTS COVERED BY INTERVENTION ARRANGEMENTS UNDER THE COMMON ORGANIZATION OF AGRICULTURAL MARKETS ;
( B)TO PRODUCTS WHOSE PRICE DEPENDS ON THE PRICE OF THE PRODUCTS REFERRED TO UNDER ( A ) AND WHICH ARE GOVERNED BY THE COMMON ORGANIZATION OF MARKET OR ARE THE SUBJECT OF A SPECIFIC ARRANGEMENT UNDER ARTICLE 235 OF THE TREATY .
9IT ALSO PLEADS AN INFRINGEMENT OF ARTICLE 1 ( 3 ) OF THAT REGULATION AS AMENDED BY REGULATION NO 2746/72 OF THE COUNCIL OF 19 DECEMBER 1972 ( OFFICIAL JOURNAL , ENGLISH SPECIAL EDITION 1972 ( 28-30 DECEMBER ), P . 64 ) ACCORDING TO WHICH MONETARY COMPENSATORY AMOUNTS SHALL APPLY WHERE THERE ARE DISTURBANCES IN TRADE IN AGRICULTURAL PRODUCTS .
10IT POINTS OUT THAT THE SECOND RECITAL IN THE PREAMBLE TO REGULATION NO 2604/77 STATES THAT ' ' THE ABSENCE OF MONETARY COMPENSATORY AMOUNTS HAS IN RECENT MONTHS CAUSED DIFFICULTIES AS REGARDS BOTH DURUM WHEAT AND THE PRODUCTS DERIVED THEREFROM ' ' AND THAT ' ' DEFLECTIONS OF TRADE IN THE CASE OF DURUM WHEAT AND DISTORTIONS OF COMPETITION IN THE CASE OF SOME OF THE PRODUCTS IN QUESTION HAVE BEEN NOTED ' ' .
11THE GOVERNMENT SUBMITS THAT THESE CONSIDERATIONS ARE MANIFESTLY MISTAKEN AND AMOUNT TO ACTUAL DISTORTION OF THE FACTS .
12IT SUBMITS THAT THERE WAS NEVER ANY DISTURBANCE IN TRADE IN DURUM WHEAT AND MEAL , THE MARKET IN WHICH IS NOT ON A COMMUNITY BUT ON A REGIONAL SCALE . THE SOUTHERN REGIONS OF THE COMMUNITY PRODUCE AND PROCESS DURUM WHEAT , AND THE NORTHERN REGIONS OBTAIN THEIR SUPPLIES NOT FROM THE SOUTH OF THE COMMUNITY BUT FROM NON-MEMBER COUNTRIES . THE TWO MARKETS ARE COMPLETELY INDEPENDENT AND NOT CAPABLE OF INTERFERING WITH ONE ANOTHER .
13IT SUBMITS THAT BECAUSE THERE IS NO INTRA-COMMUNITY MARKET IN DURUM WHEAT BUT ONLY IN PASTA , THE COMMISSION CAN SPEAK AT MOST OF DISTURBANCES IN THE PASTA MARKET ( WHICH CANNOT FULFIL THE CONDITION NECESSARY FOR THE INTRODUCTION OF COMPENSATORY AMOUNTS ) BUT CERTAINLY NOT OF DISTURBANCES IN TRADE IN WHEAT .
14THIS SUBMISSION CONCERNS THE APPLICATION OF COMPENSATORY AMOUNTS TO DURUM WHEAT AND MEAL .
15THE COMMISSION HAS SHOWN THAT THERE WERE LARGE-SCALE IMPORTS OF DURUM WHEAT FROM NON-MEMBER COUNTRIES INTO THE UNITED KINGDOM , WHERE OWING TO THE WEAKNESS OF THE CURRENCY THE LEVIES EXPRESSED IN UNITS OF ACCOUNT WERE MUCH LOWER THAN IN THE COUNTRIES WITH A STRONG CURRENCY , AND THAT CONSIDERABLE QUANTITIES WERE RE-EXPORTED TO BELGIUM , THE NETHERLANDS AND THE FEDERAL REPUBLIC OF GERMANY , WITH THE RESULT THAT IMPORTERS