Regulation (EEC) No 1172/71 of the Council of 3 June 1971 laying down general rules on private storage aid for flax and hemp fibre

REGULATION (EEC) No 1172/71 OF THE COUNCIL  of 3 June 1971  laying down general rules on private storage aid for flax and hemp fibre
THE COUNCIL OF THE EUROPEAN COMMUNITIES
,
Having regard to the Treaty establishing the European Economic Community;
Having regard to Council Regulation (EEC) No 1308/70 (1) of 29 June 1970 on the common organisation of the market in flax and hemp, and in particular Article 5 (2) thereof;
Having regard to the proposal from the Commission;
Whereas Article 5 of Regulation (EEC) No 1308/70 provides for intervention measures in the form of private storage aid if the supply of fibre shows a temporary imbalance when compared with the foreseeable demand:
Whereas the main factors indicative of such an imbalance should be defined;
Whereas to ensure the proper functioning of the system of aid those who qualify for it should be defined;
Whereas, in order to improve the efficiency of the system, provision should be made for fixing minimum and maximum quantities for storage contracts;
Whereas the duration of these contracts should not exceed the period usually needed to reduce the effect on the market of temporary fluctuations in supply and demand;
Whereas, in order to simplify administration, conditions for submitting applications for aid should be laid down;
Whereas to achieve the purposes of the aid, its amount should be fixed with reference to storage costs and rental charges;
Whereas the aim of stabilising the market can be achieved if fibre covered by a contract is not marketed while the contract is in force;
Whereas provision should be made for the conclusion of contracts to be suspended and, as appropriate, the removal from storage of the product under contract when the market situation and the level of prices so require;