23. 2. 82 Official Journal of the European Communities No L 51/1 (Acts whose publication is obligatory) COUNCIL REGULATION (EEC) No 389/82 of 15 February 1982 on producer groups and associations thereof in the cotton sector THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, Having regard to the 1979 Act of Accession, and in particular paragraph 9 of Protocol 4 thereto, Having regard to the proposal from the Commis- sion (1), Having regard to the opinion of the European Parli- ament (3), Whereas the abovementioned Protocol states that, in order to stabilize the market by structural improve- ments at the level of supply and marketing, the system of aid to production should be supplemented by aid for producer groups and associations thereof : — which have been formed at the initiative of the producers themselves, — which offer sufficient guarantee as to the duration and. effectiveness of their operations, — which are recognized by the Member State concerned ; Whereas the said Protocol also stipulates that it is for the Council, acting on a proposal from the Commis- sion, to adopt the general rules governing the above- mentioned system ; Whereas it is essential, in the first instance, to lay down precise conditions for recognition so that the groups and associations meet the requirements of the said Protocol, particularly in respect of the duration and effectiveness of their operations ; whereas, to this end, these conditions should include, in particular, centralized handling of all supplies, the exercise of () OJ No C 272, 24. 10. 1981, p. 4. () OJ No C 327, 14. 12. 1981, p. 120. adequate control over production and marketing, and the provisions necessary to ensure that the groups and associations have a sufficiently stable membership and an adequate level of economic activity; Whereas the nature and the amount of the aid granted to groups and associations should also be specified ; whereas the granting of aid to cover formation and administrative operating expenses during the first three years and of aid towards the investments neces- sary for the performance of their respective supply and marketing functions could be an appropriate incentive for the creation of groups and associations thereof; whereas, to ensure that the system envisaged is imple- mented in all regions of the Community where it proves necessary, the granting of the abovementioned forms of aid should be made obligatory; Whereas the aid granted towards the formation and operating expenses of associations should be subject to an overall ceiling, to take account of the fact that each of the groups belonging to such an association has already received or is still receiving such aid ; whereas the level of aid to be granted to organizations existing prior to the introduction of this system and the level of aid to be granted in the case of amalgamations of organizations already meeting the set requirements should also be fixed in a precise and appropriate manner ; Whereas it should be stipulated that investment aid should be granted in respect of structures to be used by groups or associations or to be used jointly by their members ; whereas it should also be ensured that such aid contributes towards the systematic improvement of existing structures ; whereas, therefore, it is appropriate to stipulate that such aid should be granted under programmes comprising a thorough analysis of the situation in the sector and the improvement envisaged, such programmes being drawn up by the Member States and approved by the Commission under a procedure ensuring close cooperation between the Member States and the Commission; whereas the