No L 300/34 Official Journal of the European Communities 24. 10. 86 (Acts whose publication is not obligatory) COMMISSION COMMISSION DECISION of 21 May 1986 on aid granted by the Federal Republic of Germany and the Land of Bavaria to a producer of polyamide and polyester yarn situated in- Deggendorf (Only the German text is authentic) (86/509/EEC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, _and in particular the first subparagraph of Article 93 (2) thereof, Having given notice to the parties concerned to submit their comments as provided for in the said Article 93, and having regard to those comments, Whereas : Upon repeated requests from the Commission, the Federal German Government by letters of 22 March and 25 July 1985 belatedly informed the Commission that financial assistance had been granted to a producer of polyamide. and polyester yarn situated in Deggendorf. The aid was granted between 1981 and the end of 1983 under the joint Federal Government/Ldnder regi- onal aid programme (Gemeinschaftsaufgabe), and under the Bavarian regional aid programme. Under the joint Federal Government/Ldnder aid scheme, a grant of DM 6,12 million was paid for investments amounting to DM 61,2 million, while under the Bavarian regional aid programme a loan of DM 11 million at an interest rate of 5 %, and running for 8 years, was given for parts of the above invest- ment amounting to DM 35,9 million. The aid there- fore, represents 28 % of the total investment. Following an initial scrutiny, the Commission consi- dered that the aid, granted between 1981 and the end of 1983, which had not been notified to the Commis- sion beforchand, was illegal as the German Govern- ment had failed to fulfil its obligations under Article 93 (3) of the EEC Treaty. Under the synthetic fibre and yarn aid code, established in 1977, notified to the Member States by letter of 19 July 1977 and published in the Bulletin of the European Communities of July/ August 1977 (point 1.53) and of November 1977 (point 2.1.47) and extended in 1979, 1981, 1983 and 1985, all aid proposals, of whatever type, in favour of companies in the synthetic fibre and yarn sector have to be notified to the Commission in sufficient time to enable it to submit its comments and, if necessary, initiate in respect of the proposed measure the proce- dure provided for'in Article 93 (2). The Commission also considered that the aid did not help to restructure the facility to produce polyamide and - polyester yarn within the meaning of the Com- munity’s synthetic fibre and yarn aid code, as the assis- tance led neither to a decrease in capacity nor to a conversion away from synthetic fibres and yarns. The Commission also took the view that the invest- ment, which had been described as basic rationalization by the German Government, did not seem to concern more than a modernization of the synthetic yarn production and processing plant for the purpose of keeping it in business and at least maintaining — if