9. 11. 8§ Official Journal of the European Communities No L 297/1 I (Acts whose publication is obligatory) COUNCIL REGULATION (EEC) No 3117/85 of 4 November 1985 laying down general rules on the granting of compensatory indemnities in respect of sardines THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, Having regard to the Treaty of Accession of Spain and Portugal and in particular Article 2 (3) and the Act annexed to that Treaty, and in particular Articles 171 and 358 thereof, Having regard to the proposal from the Commission, Whereas the Act of Accession of Spain and Portugal provides for a special system for the move towards align- ment of sardine prices, in the new Member States and in the Member States of the Community as constituted before 1 January 1986, on the level of Mediterranean prices ; whereas this system is accompanied by the estab- lishment, as from the date of accession, of a compensatory indemnity system for sardine producers in the Commu- nity as constituted before 1 January 1986, for which detailed implementing rules require to be drawn up by 31 December 1985 at the latest; Whereas this special system for the move towards price alignment has a direct influence on the level of income of producers of Atlantic sardines in the Member States of the Community as constituted before 1 January 1986 and whereas it alters the existing balance in sardine produc- tion in the said Community ; Whereas this new situation, by altering the conditions of competition in the markets of the Member States of the Community as constituted before 1 January 1986, also influences the level of income of sardine producers of those Member States in the Mediterranean region ; Whereas, consequently, general rules on the granting of these indemnities should be established; whereas the detailed rules laid down for the move towards price align- ment are such that a differentiation in the terms on which the indemnities are granted should be made between Atlantic and Mediterranean producers ; Whereas the indemnity granted for Mediterranean sardines is phased over the period of the move towards price alignment; whereas the rate of phased reduction results from the price level fixed annually by the Council ; Whereas the terms on which indemnity is granted for Mediterranean sardines must take into account, on the one hand, the effects of alterations in the conditions of competition on the income of the producers concerned and, on the other hand, the necessity of compensating for the price difference between the dominant productions of the Mediterranean and the Atlantic without introducing elements distorting the conditions of competition between processors in the enlarged Community, HAS ADOPTED THIS REGULATION : Article 1 This Regulation lays down general rules on the granting of compensatory indemnities to sardine producers in the Community as constituted before 1 January 1986 during the period of the move towards sardine price alignment as defined by the Act of Accession of Spain and Portugal. Article 2 1. A compensatory indemnity shall be granted for Atlantic sardines produced in the Community as consti- tuted before 1 January 1986: — which are of qualities E and A, as defined by Regula- tion (EEC) No 103/76 (!), as last amended by Regula- tion (EEC) No 3166/82 (%), — which are offered for sale for human consumption within a limit of 2 000 tonnes per year, by producers’ organizations within the meaning of Article 5§ (1) of Regulation (EEC) No 3796/81 (%), at prices at least equal to the Community withdrawal price as defined in Article 12 (1) of the last mentioned Regulation, but lower than a guaranteed minimum price, and — which are intended for processing. () OJ No L 20, 28. 1. 1976, p. 29. () OJ No L 332, 27. 11. 1982, p. 4. () OJ No L 379, 31. 12. 1981, p. 1.