31989R1203

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 most favourable offers and quotations recorded, excluding of 27 July 1981 laying down the general rules for the offers and quotations which cannot be regarded as repre­ system of aid for cotton (2), as last amended, by Regulation sentative of the real market trend ; (EEC) No 791 /89 (3), and in particular Article 5 ( 1 ) thereof,

Whereas the necessary adjustments must be made in cases Having regard to the opinion of the Monetary Committee, where the offers and quotations recorded do not satisfy the requirements indicated above ; Whereas, under Article 5 of Regulation (EEC) No 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 — for other currencies, an exchange rate based on the into account the estimated yield of the Community harvest in cotton seed and in ginned cotton and also the arithmetic mean of the spot market rates of each of these currencies recorded over a given period in rela­ net cost of ginning ; 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 Whereas the aid must be fixed once a month, and in such Regulation (EEC) No 2169/81 ; 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 .

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