CELEX: 51973PC1865
Language: en
Date: 1973-10-31
Title: PROPOSAL FOR A COUNCIL REGULATION (EEC) amending-Regulation (EEC) N°/73 on the exchange rate to be applied in agriculture for the Italian Lira (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73) 1865
Vol. 1973/0331
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                   COM(73)1865 final
                                                   Brussels . 31 October 1973
                     PROPOSAL FOR A COUNCIL REGULATION (EEC )
               amend ing-Regulat ion (EEC ) N°  /73 on the exchange
             rate to be applied in agriculture for the Italian Lira
                 ( submitted to the Council by the Commission)
  COM(73 ) 1865 final
 ---pagebreak---        •                y    '-W A TÔT? Y T.IH-'Q'? WH TK
      The application of Article 2 of Council Herniation ( EEC ) No'   /7 3
of ••••• on the exhange rate to be applied, in agriculture for the Italian
lira is causing difficulties in the raw tobacco sector .
      In this sector all the prices and amounts fixed in u.a . ap^ly to the
crop of a given year .    The determining factor to be taken into consideration
for the determination of the exchange rate for any transaction in this sector
is therefore the crop .    The provisions currently envisaged ( Articles 4 a^d 6
of Regulation (EEC ) No 1134/68 ) lead to another determining factor which
would bring about undesirable consequences in view , in r> articular , of the
delay in making final payment for transactions for which advances have been
granted .  The cost which the EAGGP would incur is in the order of 10 millionu «
      As a result of the system chosen , moreover , the payment of the previous
fixed for a crop does not tcie plsce during that cron year . Regulation (EEC )
No 1726/70 1 makes provision for a system of supervision for leaf tobacco
which has undergone first processing and market preparation and is circulating
in the Community , and introduces a premium certificate .   Entitlement to the
premium is only acquired at the moment when the tobacco leaves the place where
it was put under supervision , i.e. after first processing has been carried
out .
      The position is therefore that at the present time the premium has been
granted in respect of a certain quantity of the tobacco from past crops ,
whilst the remaining quantities from these crops are still to benefit from
this premium .   The application of a new exchange rate for the Italian lira
would , therefore , result in a form of discrimination
      Moreover , since all the planters have already obtained the price for
their deliveries , the benefits from this operation would not go to them but
would constitute an unjustified extra premium f or 50^ of the buyers of the
1971 crop and for all the buyers of the 1972 and 1973 crops#
      This would entail an increase of 10 million u.a . in the expenditure
of the EAGGP.
 ---pagebreak---            β
                                 -λ -
         PROPOSAL FOR A REGULATION (EEC ) NO        /73 OF THE COUNCIL
amending Regulation (EEC ) No         /73 on the conversion rate to be applied, in
agriculture for the Italian lira
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ;
                                                 1)
Having regard to Council Regulation No . 129        on the value of the unit of
aecount and the exchange rates to be applied for the purposes of the common
agricultural policy, as last amended by Regulation (EEC) No. 2543/73^\
in particular Article 30 ) thereof ;
Having regard to the proposal from the Commission ;
Whereas Article 2 of Council Regulation (EEC) No.          /73^^ of            1973
on the conversion rate to be applied in agriculture for the Italian lira
provides for the application of Articles 4 and 6 of Council Regulation (EEC )
No . 1134/68^) of 30 July 1968 laying down rules for the implementation of
Regulation (EEC ) No . 653/68 on conditions for alterations to the value of the
unit of account used for the common agricultural policy ;
                                                                                 «
Whereas these provisions result in increases in Italian lire of all amounts
fixed in units of account in cases where the event by virtue of which the
amount becomes payable occurs after 31 October 1973 ;
Whereas , since the prices and amounts fixed for tobacco in units of account
refer to a given harvest , the conversion rate to be used in a particular case
should be determined by reference to the relevant harvest ; whereas the
aforesaid Article 2 should be extended, by adding a provision to this effect ;
HAS ADOPTED THIS REGULATION:
(1 )  0J No . 106 , 30.10.1962 , p. 2553
(2 )  0J No . L 263 , 19 . 9.1973 , p.1
(3)   0J No . L              1973, p.
(4)   0J No . L 188 , 1 . 8.1968 , p.1
 ---pagebreak---                                 -       ι      -
                                   Article 1
Article 2(2 ) of Regulation (EEC ) No .      /73 is replaced "by the following:
"2.   However
- the second subparagraph of Article 40 ) of Regulation (EEC ) No . 1134/68
          I
    shall not apply when the representative rate provided for in Article
    l(2)("b ) of this Regulation comes into force ;
- in derogation from Articles 4 and 6 of Regulation (EEC ) NO . 1134/68 the
    conversion rate to be applied to prices ajid amounts fixed in units of
    account in respect of raw -tobacco harvested before 1974 shall be the
    rate applicable on 31 October 1973 »"
                                   Article 2
This Regulation snail enter into force on the day of its publication m the
Official Journal of the European Communities .       It shall , apply with effect
from 1 November 1973 *
This Regulation shall be binding in its entirety and directly applicable m
all Member States ,
Done at Brussels ,
                                                    For the Council
                                                    The President