No L 276/16 Official Journal of the European Communities 6. 10. 90 COMMISSION REGULATION (EEC) No 2885/90 of 5 October 1990 on granting aid for the private storage of long flax fibre THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, Having regard to Council Regulation (EEC) No 1308/70 of 29 June 1970 on the common organization of the market in flax and hemp (), as last amended by Commis- sion Regulation (EEC) No 3995/87 (3, and in particular Atticle 5 (1) thereof, ! Whereas Article 5 of Regulation (EEC) No 1308/70 provides for granting private storage aid when the supply of flax fibre shows a temporary imbalance when compared with foreseeable demand; whereas Council Regulation (EEC) No 1172/71 of 3 June 1971 laying down general rules coricerning private storage aid for flax and hemp fibres (}), specifies the principal items to be taken into account to ascertain the existence of such an imbalance, as well as the aid beneficiary; Whereas, during the current marketing year, Community production and imports of long flax fibre are likely to be such as to suggest that the quantities available will be higher than in the previous marketing year; Whereas during recent months the demand for fibre on the part of Community and of third country users has fallen compared to last year; whereas this situation may well continue owing to the current crisis in the linen industry ; Whereas the market situation has been characterized for some time by a marked fall in prices ; whereas in view of the foreseeable development of demand for fibre this downward trend is likely to continue; Whereas, because of a foreseeable reduction in the area sown, a fall in the production of flax during the coming marketing year is to be anticipated ; whereas, it may be expected that at the end of the present marketing year the () OJ No L 146, 4. 7. 1970, p. () OJ No L 377, 31. 12. 1987, 1. . 34, () OJ No L 123, §. 6. 1971, p. 7. balance between the supply of fibres and the foreseeable demand for them will be restored ; Whereas an assessment of the market situation thus leads to the conclusion that a temporary imbalance does exist between the supply of long flax fibre and the foreseeable demand for such fibre; whereas in these circumstances aid for the private storage of such fibre should be granted in accordance with the provisions of Commission Regula- tion (EEC) No 1524/71 of 16 July 1971 laying down detailed rules concerning private storage aid for flax and hemp fibres (%; Whereas the maximum quantity which may be the subject of a contract should be specified taking into account the need on the one hand to gradually remove the surplus from the market and on the other to simplify the administration of the system of storage aids; Whereas the temporary imbalance referred to above is likely to last until the next harvest ; whereas, in view of this, the duration of contracts should be eight to 10 months ; Whereas, since there is a risk that storage contracts will be made for a relatively large quantity of fibre, that quantity should be restricted to approximately one-third of Community production in order to guarantee normal supply to the market; whereas a maximum quantity for which each holder may take out storage contracts should therefore be set; Whereas, to make storage aid available to holders of small quantities of fibre, the minimum quantity referred to in Article 3 (2) of Regulation (EEC) No 1524/71 should be adjusted ; Whereas by virtue of Article 8 (2) (b) of Regulation (EEC) No 1172/71 the term of existing contracts may in certain circumstances be curtailed ; whereas, in addition to the aid to be paid where the obligation sunder the contract are fulfilled, the deduction to be made where the storage term is thus reduced should be specified ; Whereas the measures provided for in this Regulation are in accordance with the opinion of the Management Committee for Flax and Hemp, () OJ No L 160, 17. 7. 1971, p. 16.