TO SUSPEND THE OPERATION OF THE MEASURE AT ISSUE ( SEE ORDER OF 28 AUGUST 1978 ( 1978 ) ECR 1945 ) HAS NOT SINCE BEEN ABLE TO FURNISH ANY PROOF WHATEVER IN SUPPORT OF ITS ALLEGATIONS .
17 FOR THESE REASONS IT MUST BE CONCLUDED THAT THE COMPLAINT BASED ON A MANIFEST ERROR IN ASSESSING THE ECONOMIC FACTORS CANNOT BE UPHELD .
COMPLIANCE WITH ARTICLES 39 AND 40 OF THE TREATY
18 THE ITALIAN GOVERNMENT ALSO COMPLAINS THAT THE REGULATIONS AT ISSUE DO NOT SEEK TO ATTAIN THE OBJECTIVES OF ARTICLE 39 OF THE TREATY IN A CORRECT MANNER AND AMOUNT TO DISCRIMINATION INFRINGING THE SECOND SUBPARAGRAPH OF ARTICLE 40 ( 3 ) OF THE TREATY . THE ARGUMENTS PUT FORWARD IN SUPPORT OF THESE TWO COMPLAINTS ARE , IN SUBSTANCE , SO SIMILAR THAT IT IS APPROPRIATE TO CONSIDER THEM TOGETHER . IN EFFECT THESE COMPLAINTS ARE THAT THE PREMIUM AT ISSUE FAVOURS ONE BRANCH OF INDUSTRY , THAT OF POTATO STARCH , TO THE DETRIMENT OF THE MAIZE STARCH INDUSTRY .
19 IT IS AN ESTABLISHED FACT THAT POTATO STARCH AS WELL AS MAIZE STARCH , BEING PRODUCTS PROCESSED FROM AGRICULTURAL PRODUCTS , ARE COVERED BY THE AGRICULTURAL POLICY . THE PURPOSE OF THE PREMIUM PAYABLE TO THE PRODUCERS OF ONE OF THESE TWO PRODUCTS , POTATO STARCH , IS TO MAINTAIN THE PROFITABILITY OF THIS BRANCH OF INDUSTRY AND THUS , INDIRECTLY , TO ENSURE AN OUTLET FOR AN AGRICULTURAL PRODUCT , THE IMPORTANCE OF WHICH FOR THE AGRICULTURAL ECONOMY IN CERTAIN REGIONS OF THE COMMUNITY IS EVIDENT . THERE IS THEREFORE NO DOUBT WHATEVER THAT THE MEASURE AT ISSUE IS WITHIN THE AMBIT OF THE OBJECTIVES OF THE COMMON AGRICULTURAL POLICY AS SUCH OBJECTIVES ARE DEFINED IN ARTICLE 39 OF THE TREATY .
20 ALTHOUGH IT IS TRUE THAT THE PREMIUM AT ISSUE HAS BEEN GRANTED TO ONE BRANCH OF INDUSTRY TO THE EXCLUSION OF A COMPETING BRANCH THIS DIFFERENCE NEVERTHELESS DOES NOT AMOUNT TO DISCRIMINATION WITHIN THE MEANING OF THE TREATY . THE PREMIUM HAS BEEN INTRODUCED FOR THE PURPOSE OF OBVIATING THE SPECIAL DIFFICULTIES WHICH THE COUNCIL HAS FOUND TO EXIST IN THE POTATO STARCH SECTOR FOLLOWING THE TREND , UNFAVOURABLE TO THAT SECTOR , OF CERTAIN ECONOMIC FACTORS , ESPECIALLY OF THE VALUE OF THE BY-PRODUCTS OF BOTH OF THE PRINCIPAL PRODUCTS . THE DIFFERENCE CANNOT BE REGARDED AS DISCRIMINATORY .
21 IT FOLLOWS FROM THE FOREGOING THAT THE COMPLAINTS BASED ON FAILURE TO COMPLY WITH ARTICLES 39 AND 40 OF THE TREATY CANNOT BE UPHELD .
THE PRINCIPLE OF PROPORTIONALITY
22 FINALLY THE ITALIAN GOVERNMENT COMPLAINS THAT REGULATION NO 1127/78 IS IN BREACH OF THE PRINCIPLE OF PROPORTIONALITY WHICH REQUIRES THE IMPOSITION OF A BURDEN TO BE PROPORTIONATE TO THE OBJECTIVE TO BE ATTAINED . IT SUBMITS ON THIS POINT THAT THE OBJECTIVE SOUGHT TO BE ATTAINED BY THE INTRODUCTION OF THE PREMIUM AT ISSUE HAS BEEN TO GIVE PREFERENCE TO POTATO GROWERS . THIS OBJECTIVE , IT CLAIMS , COULD