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( 1 ) OJ NO L 131 , 26 . 5 . 1977 , P . 6 .

( 2 ) OJ NO L 161 , 29 . 6 . 1979 , P . 11 .

( 3 ) OJ NO L 230 , 22 . 8 . 1978 , P . 8 .

( 4 ) OJ NO L 282 , 7 . 10 . 1978 , P . 12 .

COMMISSION REGULATION ( EEC ) NO 2937/79

OF 20 DECEMBER 1979

CONTINUING THE MEASURES REFERRED TO IN REGULATION ( EEC ) NO 1993/78 ON THE DEVELOPMENT OF THE USE AND CONSUMPTION OF MILK PRODUCTS OF COMMUNITY ORIGIN OUTSIDE THE COMMUNITY

THE COMMISSION OF THE EUROPEAN

COMMUNITIES ,

HAVING REGARD TO THE TREATY ESTABLISHING THE EUROPEAN ECONOMIC COMMUNITY ,

HAVING REGARD TO COUNCIL REGULATION ( EEC ) NO 1079/77 OF 17 MAY 1977 ON A CO-RESPONSIBILITY LEVY AND ON MEASURES FOR EXPANDING THE MARKETS IN MILK AND MILK PRODUCTS ( 1 ), AS LAST AMENDED BY REGULATION ( EEC ) NO 1271/79 ( 2 ), AND IN PARTICULAR ARTICLE 4 THEREOF ,

WHEREAS MEASURES CARRIED OUT PURSUANT TO COMMISSION REGULATION ( EEC ) NO 1993/78 OF 18 AUGUST 1978 CONCERNING MEASURES TO DEVELOP THE USE AND CONSUMPTION OF MILK PRODUCTS OF COMMUNITY ORIGIN OUTSIDE THE COMMUNITY THROUGH TECHNICAL AND/OR COMMERCIAL ASSISTANCE ( 3 ), AS LAST AMENDED BY REGULATION ( EEC ) NO 2342/78 ( 4 ), HAVE PROVED AN EFFECTIVE MEANS OF EXPANDING THE MARKETS IN MILK PRODUCTS OUTSIDE THE COMMUNITY ; WHEREAS THEY SHOULD THEREFORE BE CONTINUED IN THE MEDIUM TERM ;

WHEREAS THE ORGANIZATIONS OR UNDERTAKINGS POSSESSING THE NECESSARY QUALIFICATIONS AND EXPERIENCE SHOULD THEREFORE BE INVITED AGAIN TO PROPOSE DETAILED PROGRAMMES WHICH THESE ORGANIZATIONS WOULD THEMSELVES CARRY OUT ;

WHEREAS , AS REGARDS THE OTHER ARRANGEMENTS , THE MAJOR PORTION OF THE PROVISIONS OF REGULATION ( EEC ) NO 1993/78 MAY BE REPEATED ;

WHEREAS THE MEASURES PROVIDED FOR IN THIS REGULATION ARE IN ACCORDANCE WITH THE OPINION OF THE MANAGEMENT COMMITTEE FOR MILK AND MILK PRODUCTS ,

HAS ADOPTED THIS REGULATION :

ARTICLE 1

1 . UNDER THE TERMS OF THIS REGULATION , ENCOURAGEMENT SHALL BE GIVEN TO MEASURES TO DEVELOP AND IMPROVE THE USE AND CONSUMPTION OF MILK AND MILK PRODUCTS OF COMMUNITY ORIGIN OUTSIDE THE COMMUNITY THROUGH TECHNICAL AND/OR COMMERCIAL ASSISTANCE IN ORDER TO PROMOTE COMMUNITY TRADE WITH THE THIRD COUNTRIES CONCERNED .

2 . THE MEASURES REFERRED TO IN PARAGRAPH 1 MAY ONLY RELATE TO :

( A ) TECHNICAL ASSISTANCE CONCERNING THE IMPROVEMENT IN THIRD COUNTRIES OF MARKETING CONDITIONS , CONSUMER INFORMATION AND PUBLICITY IN FAVOUR OF MILK PRODUCTS OF COMMUNITY ORIGIN , IRRESPECTIVE OF THE FORM TAKEN BY THE COMMERCIAL OPERATION ;

( B ) ADDITIONAL GENERIC SALES PROMOTION AND ADVERTISING FOR COMMUNITY DAIRY PRODUCTS .

3 . THE MEASURES REFERRED TO IN PARAGRAPH 1 MAY IN NO CASE CONCERN THE DIRECT OR INDIRECT FINANCING OF INVESTMENTS ( SUPPLIES OF PLANT , DELIVERIES OF GOODS , REMUNERATION OF STAFF , ETC .) UPON THE ESTABLISHMENT OF NEW FACTORIES OR PLANTS , OR UPON THE EXTENSION OR RENOVATION OF EXISTING FACTORIES OR PLANTS USED FOR THE MANUFACTURE OR PROCESSING OF MILK PRODUCTS IN A THIRD COUNTRY .

HOWEVER , IF PROOF IS FURNISHED THAT SUCH INVESTMENTS ARE MADE AT THE INSTIGATION OF THE AUTHORITIES OR OF THOSE CONCERNED IN THE THIRD COUNTRY , THE PROVISION OF THE NECESSARY KNOW-HOW FOR THIS PURPOSE MAY BE REGARDED AS A MEASURE WITHIN THE MEANING OF PARAGRAPH 1 .

4 . MEASURES LIABLE TO PREJUDICE EXISTING COMMUNITY TRADE IN MILK PRODUCTS WITH THE COUNTRY CONCERNED SHALL NOT BE TAKEN INTO CONSIDERATION .

5 . THE MEASURES REFERRED TO IN THE PREVIOUS PARAGRAPHS SHALL BE ELIGIBLE ONLY IF THEY ARE BEGUN AFTER 31 MARCH 1980 ; THEY SHALL BE COMPLETED NOT LATER THAN 31 MARCH 1982 .

ARTICLE 2

1 . MEASURES REFERRED TO IN ARTICLE 1 ( 1 ) SHALL BE PROPOSED AND CARRIED OUT BY ORGANIZATIONS OR UNDERTAKINGS WHICH :

( A ) HAVE THE NECESSARY QUALIFICATIONS AND EXPERIENCE FOR CARRYING OUT THE PROPOSED MEASURES ;

( B ) GIVE SUITABLE GUARANTEES :

- SAFEGUARDING THE INTERESTS OF EXISTING COMMUNITY TRADE WITH THE THIRD COUNTRY OR COUNTRIES CONCERNED , AND

- TO THE EFFECT THAT THEY WILL NOT MAKE DIRECT OR INDIRECT FINANCIAL INVESTMENTS WITHIN THE MEANING OF THE FIRST SUBPARAGRAPH OF ARTICLE 1 ( 3 ).

2 . COMMUNITY FINANCING SHALL BE LIMITED TO :

( A ) 75 % OF EXPENDITURE INCURRED BY THE MEASURES UNDER ARTICLE 1 ( 2 ) ( A );

( B ) 60 % OF EXPENDITURE INCURRED BY THE MEASURES UNDER ARTICLE 1 ( 2 ) ( B ) IF PROPOSALS EMANATE FROM ONE OR TWO MEMBER STATES AND 80 % IF ORGANIZATIONS OR UNDERTAKINGS FROM MORE THAN TWO MEMBER STATES ARE INVOLVED IN THE MEASURES .

ARTICLE 3

1 . THE PARTIES SPECIFIED IN ARTICLE 2 ( 1 ) SHALL BE INVITED TO TRANSMIT TO THE COMPETENT AUTHORITY APPOINTED BY THEIR MEMBER STATE , HEREINAFTER CALLED THE ' INTERVENTION AGENCY ' , DETAILED PROPOSALS CONCERNING THE MEASURES REFERRED TO IN ARTICLE 1 ( 1 ).

2 . THE PROPOSALS SHALL REACH THE INTERVENTION AGENCY CONCERNED BEFORE 1 APRIL 1980 .

3 . THE INTERVENTION AGENCIES SHALL SPECIFY THE OTHER RULES FOR SUBMISSION OF PROPOSALS IN A NOTICE WHICH SHALL BE PUBLISHED IN THE OFFICIAL JOURNAL OF THE EUROPEAN COMMUNITIES .

4 . WITHIN 10 WORKING DAYS FOLLOWING EXPIRY OF THE TIME LIMIT LAID DOWN IN PARAGRAPH 2 , THE INTERVENTION AGENCY SHALL TRANSMIT TO THE COMMISSION THE PROPOSALS RECEIVED AND ANY SUPPLEMENTARY DOCUMENTS .

THE INTERVENTION AGENCY MAY ADD ITS COMMENTS , IF ANY , TO THE PROPOSALS IN QUESTION .

ARTICLE 4

1 . PROPOSALS SHALL STATE :

( A ) THE NAME AND ADDRESS OF THE PARTY CONCERNED ;

( B ) ALL DETAILS CONCERNING THE MEASURES PROPOSED , INDICATING THE TIME REQUIRED FOR COMPLETION , THE EXPECTED RESULTS AND ANY THIRD PARTIES WHICH MAY BE INVOLVED ;

( C ) THE PRICE ASKED FOR CARRYING OUT THESE MEASURES , EXPRESSED IN THE CURRENCY OF THE MEMBER STATE ON WHOSE TERRITORY THE PARTY CONCERNED IS ESTABLISHED , GIVING AN ITEMIZED BREAKDOWN OF THIS AMOUNT AND SHOWING THE CORRESPONDING FINANCING PLAN ;

( D ) THE DESIRED FORM OF PAYMENT OF THE COMMUNITY CONTRIBUTION ( ARTICLE 7 ( 1 ) ( A ) OR ( B )).

2 . PROPOSALS SHALL BE VALID ONLY WHERE :

( A ) THEY ARE SUBMITTED BY A PARTY FULFILLING THE CONDITIONS LAID DOWN IN ARTICLE 2 ( 1 );

( B ) THEY ARE ACCOMPANIED BY AN UNDERTAKING TO COMPLY WITH THE PROVISIONS OF THIS REGULATION AND THE LIST OF TERMS AND CONDITIONS REFERRED TO IN ARTICLE 6 .

ARTICLE 5

1 . AFTER EXAMINATION OF THE PROPOSALS BY THE MANAGEMENT COMMITTEE FOR MILK AND MILK PRODUCTS PURSUANT TO ARTICLE 31 OF REGULATION ( EEC ) NO 804/68 , THE COMMISSION SHALL CONCLUDE CONTRACTS IN RESPECT OF THE MEASURES REFERRED TO IN ARTICLE 1 ( 1 ) WITH THOSE PARTIES WHOSE PROPOSALS HAVE BEEN ACCEPTED .

PRIOR TO THE CONCLUSION OF A CONTRACT , THE PARTY CONCERNED MAY BE REQUESTED TO SUPPLY ADDITIONAL INFORMATION AND/OR DETAILS CONCERNING ITS PROPOSAL .

2 . THE INTERVENTION AGENCY SHALL INFORM EACH PARTY CONCERNED AS SOON AS POSSIBLE OF THE DECISION TAKEN IN RESPECT OF ITS PROPOSAL .

ARTICLE 6

1 . ON ACCEPTANCE OF A PROPOSAL IN ACCORDANCE WITH ARTICLE 5 , A LIST OF TERMS AND CONDITIONS SHALL BE DRAWN UP BY THE COMMISSION IN AT LEAST THREE COPIES AND SIGNED BY THE PARTY CONCERNED .

2 . THE LIST OF THE TERMS AND CONDITIONS SHALL FORM AN INTEGRAL PART OF THE CONTRACT REFERRED TO IN ARTICLE 5 ( 1 ) AND SHALL :

( A ) INCLUDE THE DETAILS SPECIFIED IN ARTICLE 4 ( 1 ) OR MAKE REFERENCES TO THEM ; AND

( B ) SUPPLEMENT THESE DETAILS , WHERE NECESSARY , BY ADDITIONAL CONDITIONS ARISING FROM THE APPLICATION OF THE SECOND SUBPARAGRAPH OF ARTICLE 5 ( 1 ).

3 . THE COMMISSION SHALL FORWARD A COPY OF THE CONTRACT AND OF THE LIST OF TERMS AND CONDITIONS TO THE INTERVENTION AGENCY RESPONSIBLE FOR ENSURING COMPLIANCE WITH THE AGREED CONDITIONS .

ARTICLE 7

1 . THE INTERVENTION AGENCY CONCERNED SHALL PAY TO THE PARTY IN QUESTION , IN ACCORDANCE WITH THE CHOICE EXPRESSED IN ITS PROPOSAL , EITHER :

( A ) WITHIN SIX WEEKS OF THE DATE OF SIGNATURE OF THE CONTRACT AND THE LIST OF TERMS AND CONDITIONS , A SINGLE PAYMENT ON ACCOUNT AMOUNTING TO 60 % OF THE AGREED COMMUNITY CONTRIBUTION ; OR ,

( B ) AT TWO-MONTHLY INTERVALS , FOUR EQUAL INSTALMENTS EACH AMOUNTING TO 20 % OF THE AGREED COMMUNITY CONTRIBUTION , THE FIRST SUCH INSTALMENT BEING PAID WITHIN SIX WEEKS OF THE DATE OF SIGNATURE OF THE CONTRACT AND THE LIST OF TERMS AND CONDITIONS .

2 . THE PAYMENT OF EACH INSTALMENT SHALL BE SUBJECT TO THE LODGING WITH THE INTERVENTION AGENCY OF A SECURITY EQUAL TO THE AMOUNT OF THE INSTALMENT , PLUS 10 % .

3 . THE RELEASE OF SECURITIES AND PAYMENTS OF THE BALANCE BY THE INTERVENTION AGENCY SHALL BE SUBJECT TO :

( A ) CONFIRMATION BY THE INTERVENTION AGENCY THAT THE PARTY CONCERNED HAS FULFILLED ITS OBLIGATIONS AS LAID DOWN IN THE CONTRACT AND LIST OF TERMS AND CONDITIONS ;

( B ) THE TRANSMISSION TO THE COMMISSION AND TO THE INTERVENTION AGENCY OF THE REPORT REFERRED TO IN ARTICLE 8 ( 1 ) AND VERIFICATION OF THE DETAILS CONTAINED IN THIS REPORT BY THE INTERVENTION AGENCY AND BY THE COMPETENT COMMISSION DEPARTMENT ; AND

( C ) PROOF BEING FURNISHED THAT THE PARTY CONCERNED HAS SPENT ITS OWN CONTRIBUTION FOR THE PURPOSES LAID DOWN .

4 . TO THE EXTENT THAT THE CONDITIONS SET OUT IN PARAGRAPH 3 ARE NOT FULFILLED , SECURITIES SHALL BE FORFEITED . IN THIS EVENT , THE AMOUNT IN QUESTION SHALL BE DEDUCTED FROM EXPENDITURE DECLARED TO THE EUROPEAN AGRICULTURAL GUIDANCE AND GUARANTEE FUND , GUARANTEE SECTION , AND MORE PARTICULARLY FROM THAT ARISING OUT OF THE MEASURES REFERRED TO IN ARTICLE 4 OF REGULATION ( EEC ) NO 1079/77 .

ARTICLE 8

1 . EACH PARTY RESPONSIBLE FOR ONE OF THE MEASURES REFERRED TO IN ARTICLE 1 ( 1 ) SHALL SUBMIT TO THE COMMISSION AND TO THE INTERVENTION AGENCY CONCERNED , WITHIN THREE MONTHS AFTER COMPLETION OF THE MEASURE IN QUESTION , AND IN ANY CASE BEFORE 1 JULY 1982 , A REPORT ON THE UTILIZATION OF THE COMMUNITY FUNDS ALLOCATED AND ON THE RESULTS OF THE MEASURE .

2 . THE RESULTS OF THE WORK PROVIDED FOR IN THIS REGULATION MAY BE PUBLISHED ONLY WITH THE EXPRESS AUTHORIZATION OF THE COMMISSION .

ARTICLE 9

THIS REGULATION SHALL ENTER INTO FORCE ON THE THIRD DAY FOLLOWING ITS PUBLICATION IN THE OFFICIAL JOURNAL OF THE EUROPEAN COMMUNITIES .

THIS REGULATION SHALL BE BINDING IN ITS ENTIRETY AND DIRECTLY APPLICABLE IN ALL MEMBER STATES .

DONE AT BRUSSELS , 20 DECEMBER 1979 .

FOR THE COMMISSION

FINN GUNDELACH

VICE-PRESIDENT