31989R2796

16 . 9 . 89 Official Journal of the European Communities No L 269 /29

COMMISSION REGULATION (EEC) No 2796/89 of 15 September 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 Having regard to the Act of Accession of Spain and equal to the sum of the values for ginned cotton and Portugal, cotton seed defined in Article 1 of Commission Regula­ tion (EEC) No 1201 /89 of 3 May 1989 laying down rules Having regard to the Act of Accession of Greece, and in implementing the system of aid for cotton (6), as amended particular paragraphs 3 and 10 of Protocol 4 on cotton by Regulation (EEC) No 2733/89 Q, minus the cost of annexed thereto, as amended by Protocol 14 annexed to ginning ; the Act of Accession of Spain and of Portugal, and Regu­ lation (CEE) No 4006/87 0), Whereas the above values are established on the basis of Having regard to Council Regulation (EEC) No 2169/81 the prices determined in accordance with Articles 2 and 3 of 27 July 1981 laying down the general rules for the of Commission Regulation (EEC) No 1201 /89 ; whereas system of aid for cotton (2), as last amended by Regulation the world market price is determined on the basis of the (EEC) No 791 /89 (3), and in particular Article 5 (1 ) thereof, most favourable offers and quotations recorded, excluding offers and quotations which cannot be regarded as repre­ sentative of the real market trend ; Having regard to the opinion of the Monetary Committee,

Whereas, under Article 5 of Regulation (EEC) No 2169/81 , aid must be granted for unginned cotton Whereas the necessary adjustments must be made in cases harvested in the Community when the world market where the offers and quotations recorded do not satisfy price for unginned cotton is below the guide price ; the requirements indicated above ;

Whereas the aid is equal to the difference between these two prices ; Whereas, under Article 4 (4) of Regulation (EEC) No 2169/81 , if there are no suitable offers or quotations for Whereas the guide price for the 1989/90 marketing year determining the world market price for cotton seed, that was fixed by Council Regulation (EEC) No 1241 /89 (4) ; price shall be established on the basis of the most i favourable offers and quotations for cotton seed recorded Whereas, under the system of maximum guaranteed on the Community market or, if those offers and quota­ tions cannot be established on the basis of the value of quantities, the amount of the aid is subject to the reduc­ the products obtained from processing the seed in the tion provided for in Commission Regulation (EEC) No 2624/89 (*) as regards cotton seed ; Community, less the processing cost ; whereas this value is determined in accordance with Article 4 of Regulation (EEC) No 1201 /89 ; Whereas the world market price for unginned cotton is determined periodically on the basis bf the world market prices recorded for ginned cotton and cotton seed, taking into account the estimated yield of the Community Whereas, if the subsidy system is to operate normally, harvest in cotton seed and in ginned cotton and also the subsidies should be calculated on the following basis : net cost of ginning ;

Whereas the world market price for ginned cotton and — in the case of currencies which are maintained in rela­ cotton seed is determined in accordance with Article 4 of tion to each other at any given moment within a band Regulation (EEC) No 2169/81 ; of 2,25 %, a rate of exchange based on their central rate, multiplied by the corrective factor provided for in Whereas, if the world market price for unginned cotton the last paragraph of Article 3 (1 ) of Council Regula­ cannot be determined as described above, this price shall tion (EEC) No 1676/85 (8), as last amended by Regula­ tion (EEC) No 1636/87 (9), (') OJ No L 377, 31 . 12. 1987, p. 48 . 0 OJ No L 211 , 31 . 7. 1981 , p. 2. 0 OJ No L 123, 4. 5. 1989, p. 23. 0 OJ No L 85, 30. 3. 1989, p. 7. 0 OJ No L 263, 9. 9. 1989, p. 15. (4) OJ No L 129, 11 . 5. 1989, p. 1 . (8) OJ No L 164, 24. 6. 1985, p. 1 . 0 OJ No L 254, 31 . 8. 1989, p. 8. 0 OJ No L 153, 13. 6. 1987, p. 1 .

No L 269/30 Official Journal of the European Communities 16. 9 . 89

HAS ADOPTED THIS REGULATION : — for other currencies, an exchange rate based on the arithmetic mean of the spot market rates of each of these currencies recorded over a given period in rela­ Article 1 tion to the Community currencies referred to in the previous indent, and the aforesaid coefficient ; The aid for unginned cotton provided for in Article 5 of Whereas the aid must be fixed once a month, and in such Regulation (EEC) No 2169/81 shall be 40,006 ECU per a way that it can be applied from the first day of the 100 kilograms. month following the date of fixing ; whereas it may be altered between fixings ; Article 2 Whereas it follows from applying these provisions to the offers and quotations known to the Commission that the This Regulation shall enter into force on 16 September aid for cotton should be as set out in this Regulation, 1989 .

This Regulation shall be binding in its entirety and directly applicable in all Member States .

Done at Brussels, 15 September 1989. For the Commission Ray MAC SHARRY Member of the Commission