BECOME MEMBERS ; AN ORGANIZATION MAY , HOWEVER , WAIVE THAT REQUIREMENT IN RESPECT OF CERTAIN QUANTITIES .
IN ADDITION , THE ORGANIZATIONS MUST REQUIRE THEIR MEMBERS TO APPLY , WITH REGARD TO PRODUCTION AND MARKETING , THE RULES WHICH THEY HAVE ADOPTED FOR THE PURPOSE OF IMPROVING PRODUCT QUALITY AND ADAPTING THE VOLUME OF SUPPLY TO THE MARKET REQUIREMENTS .
3 UNDER ARTICLE 14 OF THE REGULATION , MEMBER STATES MAY GRANT AID TO PRODUCERS ' ORGANIZATIONS , DURING THE THREE YEARS FOLLOWING THE DATE ON WHICH THEY ARE ESTABLISHED , TO ENCOURAGE THEIR FORMATION AND TO FACILITATE THEIR OPERATION , PROVIDED THAT THE ORGANIZATIONS FURNISH ADEQUATE GUARANTEES AS REGARDS THE DURATION AND EFFECTIVENESS OF THEIR ACTIVITIES . FURTHERMORE , UNDER ARTICLE 18 MEMBER STATES MUST GRANT FINANCIAL COMPENSATION TO PRODUCERS ' ORGANIZATIONS WHICH INTERVENE IN ACCORDANCE WITH THE ARRANGEMENTS FOR WITHDRAWING THEIR MEMBERS ' PRODUCTS FROM THE MARKET PURSUANT TO ARTICLE 15 . THE EXPENDITURE THEREBY INCURRED IS ELIGIBLE FOR FINANCING BY THE GUARANTEE SECTION OF THE FUND .
4 THE DISPUTE CONCERNS THE FINANCIAL COMPENSATION PAID BY THE ITALIAN GOVERNMENT TO FOUR PRODUCERS ' ORGANIZATIONS WHICH , ACCORDING TO THE COMMISSION , DO NOT FULFIL THE CONDITIONS LAID DOWN BY REGULATION NO 1035/72 . THOSE ORGANIZATIONS ARE : THE ASSOCIAZIONE DI ZONA FRA PRODUTTORI ORTOFRUTTICOLI DELLE PROVINCIE DI MATERA E POTENZA , THE ASSOCIAZIONE DI ZONA FRA PRODUTTORI DI AGRUMI DELLE PROVINCIE DI CATANZARO , COSENZA E REGGIO CALABRIA , THE ASSOCIAZIONE INTERPROVINCIALE PRODUTTORI AGRUMICOLO ED ORTIFRUTTICOLI ' AIPAO ' , OF CATANIA , AND THE ASSOCIAZIONE CONSORZIO PROVINCIALE COOPERATIVE AGRICOLE ' ETNA ' , OF CATANIA .
5 THE SUMMARY REPORT FOR 1978/79 , PREPARED BY OFFICIALS OF THE COMMISSION FOLLOWING DISCUSSION WITH REPRESENTATIVES OF THE COMPETENT NATIONAL AUTHORITIES , STATES THAT , WHEN CLEARING THE ACCOUNTS FOR THE FINANCIAL YEARS 1973 TO 1977 , THE COMMISSION RESERVED ITS POSITION ON THE ELIGIBILITY OF CERTAIN ITEMS OF EXPENDITURE INCURRED IN ITALY IN CONNECTION WITH THE WITHDRAWAL OF FRUIT AND VEGETABLES FROM THE MARKET , PENDING THE OUTCOME OF AN INQUIRY CONDUCTED JOINTLY BY ITS OWN OFFICIALS AND THE ITALIAN AUTHORITIES . ON THE BASIS OF THAT INQUIRY IT CONCLUDED THAT , OUT OF THE 82 PRODUCERS ' ORGANIZATIONS SURVEYED , THE FUNCTIONING OF FOUR DID NOT COMPLY WITH COMMUNITY LEGISLATION . FINANCIAL COMPENSATION FOR THE WITHDRAWAL OF PRODUCTS FROM 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 1982 AND SEPTEMBER 1982 , AND THAT THEY