CELEX: 31989R1203
Language: en
Date: 1989-05-04 00:00:00
Title: Commission Regulation (EEC) No 1203/89 of 3 May 1989 fixing the aid for cotton

No L 123/34                             Official Journal of the European Communities                                    4. 5 . 89
                                    COMMISSION REGULATION (EEC) No 1203/89
                                                          of 3 May 1989
                                                   fixing the aid for cotton
THE COMMISSION OF THE EUROPEAN COMMUNITIES,                        be established on the basis of the most recent price deter­
                                                                   mined ;
Having regard to the Treaty establishing the European
Economic Community,                                                Whereas the world market price for unginned cotton is
                                                                   equal to the sum of the values for ginned cotton and
Having regard to the Act of Accession of Spain and                 cotton seed defined in Article 1 of Commission Regula­
Portugal,                                                          tion (EEC) No 1201 /89 of 3 May 1989 laying down rules
                                                                   implementing the system of aid for cotton (4), minus the
Having regard to the Act of Accession of Greece, and in            cost of ginning ;
particular paragraphs 3 and 10 of Protocol 4 on cotton
annexed thereto, as amended by Protocol 14 annexed to              Whereas the above values are established on the basis of
the Act of Accession of Spain and of Portugal, and Regu­           the prices determined in accordance with Articles 2 and 3
lation (CEE) No 4006/87 ('),                                       of Commission Regulation (EEC) No 1201 /89 ; whereas
                                                                   the world market price is determined on the basis of the
Having regard to Council Regulation (EEC) No 2169/81
of 27 July 1981 laying down the general rules for the              most favourable offers and quotations recorded, excluding
system of aid for cotton (2), as last amended, by Regulation       offers and quotations which cannot be regarded as repre­
                                                                   sentative of the real market trend ;
(EEC) No 791 /89 (3), and in particular Article 5 ( 1 ) thereof,
Having regard to the opinion of the Monetary Committee,            Whereas the necessary adjustments must be made in cases
                                                                   where the offers and quotations recorded do not satisfy
Whereas, under Article 5 of Regulation (EEC) No                    the requirements indicated above ;
2169/81 , aid must be granted for unginned cotton
harvested in the Community when the world market                   Whereas, under Article 4 (4) of Regulation (EEC) No
price for unginned cotton is below the guide price ;               2169/81 , if there are no suitable offers or quotations for
                                                                   determining the world market price for cotton seed, that
Whereas the aid is equal to the difference between these           price shall be established on the basis of the most
two prices ;                                                       favourable offers and quotations for cotton seed recorded
                                                                   on the Community market or, if those offers and quota­
Whereas in the absence of the guide price for cotton               tions cannot be established on the basis of the value of
applicable during the 1989/90 marketing year, the aid              the products obtained from processing the seed in the
amount have been fixed on the basis of the Commission's            Community, less the processing cost ; whereas this value
latest proposals to the Council ; whereas this amount              is determined in accordance with Article 4 of Regulation
must be provisionally applied and confirmed or altered             (EEC) No 1201 /89 ;
when the 1989/90 marketing year prices are known ;
                                                                   Whereas, if the subsidy system is to operate normally,
Whereas the abatement of the subsidy which arises, where           subsidies should be calculated on the following basis :
appropriate, from the system of maximum guaranteed
quantities for the 1989/90 year, has not, to date, been            — in the case of currencies which are maintained in rela­
fixed ; whereas the amount of the subsidy for the 1989/90               tion to each other at any given moment within a band
year has been provisionally calculated on the basis of an               of 2,25 %, a rate of exchange based on their central
abatement of 24,005 ECU per 100 kilograms ;                             rate, multiplied by the corrective factor provided for in
                                                                        the last paragraph of Article 3 (1 ) of Council Regula­
Whereas the world market price for unginned cotton is                   tion (EEC) No 1676/85 (*), as last amended by Regula­
determined periodically on the basis of the world market                tion (EEC) No 1636/87 (6),
prices recorded for ginned cotton and cotton seed, taking
into account the estimated yield of the Community                  — for other currencies, an exchange rate based on the
harvest in cotton seed and in ginned cotton and also the                arithmetic mean of the spot market rates of each of
net cost of ginning ;                                                   these currencies recorded over a given period in rela­
                                                                        tion to the Community currencies referred to in the
Whereas the world market price for ginned cotton and                    previous indent, and the aforesaid coefficient ;
cotton seed is determined in accordance with Article 4 of
Regulation (EEC) No 2169/81 ;                                      Whereas the aid must be fixed once a month, and in such
                                                                   a way that it can be applied from the first day of the
Whereas, if the world market price for unginned cotton             month following the date of fixing ; whereas it may be
cannot be determined as described above, this price shall          altered between fixings ;
(') OJ No L 377, 31 . 12. 1987, p. 48.                             (4) See page 23 of this Official Journal.
(2) OJ No L 211 , 31 . 7. 1981 , p. 2.                             O OJ No L 164, 24. 6. 1985, p. 1 .
(3) OJ No L 85, 30 . 3. 1989, p. 7.                                (6) OJ No L 153, 13. 6. 1987, p. 1 .
 ---pagebreak--- 4. 5. 89                           Official Journal of the European Communities                         No L 123/35
Whereas it follows from applying these provisions to the       of the guide price of cotton adopted in respect of the
offers and quotations known to the Commission that the         1989/90 marketing year and, as the case may be, which
aid for cotton should be as set out in this Regulation,        appear to have been offered in the largest quantities.
HAS ADOPTED THIS REGULATION :
                         Article 1
1 . The aid for unginned cotton provided for in Article                               Article 2
5 of Regulation (EEC) No 2169/81 shall be 46,839 ECU
per 100 kilograms.
2.    However, the amounts of the aid will be confirmed
or replaced with effect from 4 May 1989 to take account        This Regulation shall enter into force on 4 May 1989.
                This Regulation shall be binding in its entirety and directly applicable in all Member
                States.
                Done at Brussels, 3 May 1989.
                                                                       For the Commission
                                                                        Ray MAC SHARRY
                                                                    Member of the Commission