ARCHIVES HISTORIQUES DE LA COMMISSION

COLLECTION RELIEE DES DOCUMENTS "COM"

COM (74) 1571

Vol. 1974/0255 Disclaimer

Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 concernant l'ouverture au public des archives historiques de la Communauté économique européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 (JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit règlement.

In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 concerning the opening to the public of the historical archives of the European Economic Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this file have been declassified in conformity with Article 5 of the aforementioned regulation.

In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1. Februar 1983 über die Freigabe der historischen Archive der Europäischen Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983, S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003 (ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5 der genannten Verordnung freigegeben. COMMISSION OB TUB EU&OEEAN COMMUNTII2S

COM(74)1571 final Brussels , 3 October 1974

PROPOSAL POP. A REGULATION (EEC ) OF THE COUNCIL

extendiii;; the period of validity of Regulation ( EEC ) No 3576/ 73 on imports of the wine product exported under the label of " Cyprus Sherry", originating in and coming from Cyprus , and the introduction of subsidies for similar wine products in the Community as originally constituted and exported to Ireland the the United Kingdom.

.(.submitted to the Council by the Commission)

COM(74) 1571 final EXPLMATOPY KETiORAîïDUM

The Association Agreement with the Republic of Cyprus meJces provision for spe­ cial treatment , until 1 and. thereafter in respect of the marketing of the 1974 harvest , of imports of the wine product exported under the label of "Cyprus Sherry", which is one of the country 's major exports .

The primary aim of this arrangement , which was the subject of an exchange of letters annexed to the Supplement ary Protocol to the Agreement , is to avoid a sudden disruption of traditional exports to Ireland and the United Kingdom after 1 » when reference prices for wine were applied by the new Member States . Had the reference price been applied to that product immediately , the effect , bearing in mind also certain problems of competition and quality , might well have been to oust the product from the British market . However , in order not to perpetuate arrangoiuents which in the long term would be highly prejudi­ cial to the common organization of markets , particularly since the granting of definitive special treatment could not fail to create a precedent , Cyprus must take measures enabling the arrangements applicable to "Cyprus Sherry" to be aligned as soon as possible on the general arrangements laid down by the Com­ munity provisions concerning wine products .

This is why the granting of special interim treatment was made subject to the condition that Cyprus adopt and bring into force during the period in question legislation on wine production corresponding to that of the Community .

In order not to affect traditional trade patterns and deliveries to Irish and United Kingdom markets of similar wine products produced in the Community during the period in which the export arrangements in question apply in respect of "Cyprus Sherry", the quantity of imports coming under those arrangements has , as stated in the exchange of letters , been limited to the quantity actually imported over recent years ( 200.000 hectolitres). Furthermore , the Council has adopted measures which should enable similar wines of Community origin to compete on equc.l terms with that wine on the markets in question. By Regulations (EEC ) n° 1253/73 and 357^/73 » the Community implemented between 1 February and 31 » a-nd later extended until 31 December 1973 "the provisions of the Agreement as set out in the above-mentioned exchange of letters . - 2 -

The Republic of Cyprus , for its part , adopted on 31 ( i*e . within the time limit set in the exchange of letters ) new legislation on trine produc­ tion which , following the amendments made to it on 23 » may be con­ sidered to correspond to Community legislation and which is to enter into force on 1 January 1975 • - * In view of the above , the arrangements introduced by Regulation (EEC ) n° 1253/73 should , as provided for in the exchange of letters ,, be extended to cover the marketing of wines of the 1974 harvest . Draft Proposal for a REGULATION ( EEC ) No /74 OP THE COUNCIL

of extending the period of validity of Regulation ( ESC) No 3576/ 73 on imports of the wine product exported under the label of "Cyprus Sherry", originating in and coning from Cyprus , and the intro­ duction of subsidies for similar wine products in the Community as originally constituted and exported to Ireland the the United Kingdom

THE COUNCIL OF THE EUROPEAN COMMUNITIES ,

Having regard to the Treaty establishing the European Economic Community , and in particular Article 43 thereof ;

Having regard to the proposal ftfom the Commission ; Whereas Council Regulation ( EEC) No 1253/73^^ °f 14 Tfey 1973 , as amended by Regulation ( EEC) No 3576/ 73 2 » introduced special arrangements for the importation of the xiine product exported under the label of " Cyprus Shorry" originating in and coming from Cyprus , and provided for subsidies for similar wine products produced in the Community as originally constituted end con­ signed to Ireland and the United Kingdom ; whereas the arrangements in question are to apply only until 31 December 1974 ;

Whereas , by the exchange of letters referred to in Article 12 of the Protocol ^ ^ laying down certain provisions relating to the Agreement establishing an Association between the European Economic Comranii ty and the Republic of Cyprus consequent on the Accession of new Member States to the European Economic Community, the Community agreed to ertend the arrangements in question to the marketing of wines of the 1974 harvest ;

Whereas on 31 August 1973 the Republic of Cyprus adopted new re relations governing wine products ; whereas those regulations , following x:.s amend­ ments made to them on 21 December 1973 , correspond to those of ti:e Community ;

( 1 ) OJ No L 133 , 21 Kay 1973 , p. 115 ? ( 2) OJ No L 359 , 28 December 1973 , p . 33 * ( 3 ) OJ No L 133 , 21 , p. 95 . - 2 -

Wheroas the Republic of Cyprus has undertaken to make the new regulations ap­ plicable frou 1 Januaiy 1975 }

Whereas under the circumstances and in view of such undertnking 6 the arran­ gements provided for in Regulation (EEC ) n° 3576/73 should be extended to apply to the marketing of wines of the 1974 harvest ; whereas , to enable that harvest to bo marketed , the arrangements should remain applicable until 31 Decenber 1975 ?

HAS ADOPTED THIS 3REGULATICN : ' ' "

Article 1 1 . In Article 1 . of Regulation , (EEC ) n° 357^/73 the phrase '.'from 1 January to 31 December 1974" is replaced by the phrase "from 1 Januarysto' 31 December 1975". 2 . In Article 4 ( l ) of Regulation (EEC ) n° 3576/73 "the date "31 Decenber 1974 " is replaced by the date "31 December 1975 " •

Article 2 This Regulation shall enter into force on 1 Januaiy 1975 •

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

Done at Brussels , For the Council The President FDT/iTCIAL EFFECTS

As in previous years , the " Cyprus Sherry" subsidy may from the financial point of view be regarded as an intervention measure within the meaning of Article 3 ( l ) of Regulation (EEC ) n° 729/70 * A proposal for a Regulation amending the Annex to Regulation (EEC ) n° 2324/ will bo submitted to the Council in the ne:ct few weeks *

Expenditure incurred under the Regulation will amount to some 100.000 to 120,000 units of account ( on the optimistic assumption that the quantity of vine in question is equivalent to the quantity of liqueur wines not having a registered designation of origin which is exported to third countries - 4.500 hi in 1972 , multiplied by 24 u.a./hl ) for the period 1 Jmuary 1975 "to 31 December 1975 ( the subsidy will be limited to this period).

That amount will be charged against Article 69I - Intervention in respect of v;ine - of the 1975 Budget of the European Communities .

Article 69I Budget Approriations Experiiturc

1973 o»T03»000 u#3»# 1974 37.300.000 190»000 u.a. ( January - April 1974 ) 1975 88.900.000 ( 1975 preliminary draft Budget )

The funds mooilized for the purpose of the proposed measure represent only 0,1 ^ of the apprpriations for wine intervention and would have no important effects on the utilization of appropriations provided for the 1975 Budget .