2.Regulation No 19 of the Council of 4 April 1962 on the progressive establishment of the common organization of the market in cereals (JO of 20. 4. 1962, p. 933), introduced a system of levies for certain cereal products. Article 24 of the regulation provided however that the Council might adopt measures derogating from those provisions.Such measures had been adopted by Regulation No 55 of the Council of 30 June 1962 relating to the system in respect of processed products based on cereals (JO of 2. 7. 1962, p. 1583). Article 17 of that regulation had established the system of discretionary refunds for certain starches. The thirteenth recital in the preamble to the regulation reads as follows:‘Whereas because of the special situation on the market in starches and in particular the need for that industry to keep prices competitive with those for substitute products, it is necessary by way of derogation from the provisions … of Regulation No 19 of the Council, to ensure by means of a production refund that the basic products used by the industry are made available to it, at a lower price than that which would result from applying the system of levies…’Regulation No 141/64/EEC of the Council of 21 October 1964 concerning the rules applying to processed products derived from rice and other cereals (JO of 27. 10. 1964, p. 2666) had continued the system of liscretionary production refunds. It had however established for the first time a production refund for maize and common wheat used in the quellmehl industry.Regulation No 142/64/EEC of the Council of 21 October 1964 providing for the extension and adjustment to 31 March 1965 of the limitations on the production refunds for cereal and potato starch (JO of 27. 10. 1964, p. 2673) and fixing the refunds provided for under Regulation No 141/64/EEC accordingly provided in Article 1 (1) (e) thereof that:‘In the case of quellmehl the refund for maize, common wheat and broken rice used in the manufacture of that product shall be the same as that granted for the same cereals used for starch manufacture.’The system established by the definitive basic Regulation No 120/67/EEC of the Council of 13 June 1967 on the common organization of the market in cereals (OJ English Special Edition 1967, p. 33) made the grant of the production refund compulsory. In the tenth recital in the preamble to that regulation it is inter alia stated‘Whereas … because of the interchangeability of starches with quellmehl and maize groats and meal, production refunds should also be granted in respect of the latter products;’Article 11 (1) of the regulation reads:1.A production refund shall be granted:(a) for maize ana common wheat used by the starch industry for the manufacture of starch and quellmehl;(b) tor potato starch;(c) for maize used in the maize industry for the manufacture of maize groats and meal (gritz) used by the brewing industry.’Regulations Nos 178/67/EEC of 27 June 1967, 371/67/EEC of 25 July 1967 of the Council, fixing the production refunds for starch, potato starch and quellmehl (JO of 28. 6. 1967, p. 2617 and of 31. 7. 1967, p. 40) maintained this parity between starch and quellmehl.The production refund for quellmehl was maintained until 1 August 1974 with effect from which date it was abolished by Regulation (EEC) No 1125/74 of the Council of 29 April 1974 amending Regulation No 120/67/EEC (OJ L 128 of 10. 5. 1974, p. 12). However the refunds for maize, common wheat and broken rice used for the manufacture of starch and consequently pre-gelatinized starch continued to be granted.The third and fourth recitals in the preamble to the latter regulation stated that:‘the production refund for quellmehl was initially granted with a view to promoting certain specific uses of quellmehl as a food for human consumption, account being taken of the possibility of its competing with a number of other products;’and that‘experience has shown that the opportunity for such substitution is economically slight, if not non-existent; … the production refund for quellmehl should therefore be abolished;’Regulation (EEC) No 1132/74 of the Council of 29 April 1974 on production refunds in the cereal and rice sectors (OJ L 128 of 10. 5. 1974, p. 24), which fixed the refunds provided for by Regulation (EEC) No 1125/74, resulted in the reduction of the production refund for maize and common wheat used for the manufacture of starch to 24.60 units of account per metric ton [hereinafter called ‘tonne’]. In order to give a reason for the maintenance of the refund for starch manufacture, the second recital in the preamble to the regulation states inter alia that‘a precise assessment of the situation resulting from the level of common prices and from the competition between, on the one hand, maize starch, rice starch, potato starch and, on the other, the substitute chemical products, indicates that the refund should be fixed at such a figure that the price of maize used in starch manufacture is brought down to 8.20 u. a. per 100 kg…;’Regulation (EEC) No 3113/74 of the Council of 9 December 1974 amending Regulation (EEC) No 1132/74 on production refunds in the cereals and rice sectors (OJ L 332, p. 1) resulted in a subsequent reduction (to 15.55 u. a. per tonne) of the refund granted for maize for the manufacture of starch.Regulation (EEC) No 665/75 of the Council of 4 March 1975 amending Regulation (EEC) No 120/67/EEC (OJ L 72 of 20. 3. 1975, p. 14) which entered into force on 1 August 1975 made, inter alia, the production refund for cereals used in the manufacture of starch no longer compulsory. Moreover the regulation abolished the production refund for maize groats and meal (gritz) used by the brewing industry.In Regulation (EEC) No 1955/75 of the Council of 22 July 1975 on production refunds in the cereals and rice sectors (OJ L 200 of 31. 8. 1975. p. 1) which also entered into force on 1 August 1975, the production refund on, inter alia, maize for the manufacture of starch was once more reduced and fixed at 10 u. a. per tonne.
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