30. 5. 86 Official Journal of the European Communities No L 145/13 COUNCIL REGULATION (EEC) No 1654/86 of 26 May 1986 introducing a common measure for replanting and converting olive groves damaged by frost in 1985 in certain regions of the Community + THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, and in particular Article 43 thereof, Having regard to the proposal from the Commission ('), Having regard to the opinion of the European Parli- ament (3), Whereas, in order to attain the objectives of the common agricultural policy which are set out in Article 39 (1) (a) and (b) of the Treaty, assistance should be provided for the structural improvement of agriculture in regions which are facing major problems; Whereas particularly severe and protracted frosts have destroyed or caused considerable damage to olive trees in certain regions of the Community, especially in hill and mountain areas ; Whereas, in those hill and mountain areas in particular, olive-growing is unlikely to be replaced by other crops and whereas, accordingly, the replanting of olive groves should, subject to certain conditions, be encouraged in order to ensure the survival of farming, while preventing soil erosion and disruption of the hydrological cycle, protect the environment and preserve the countryside; Whereas the replanting should be encouraged by means of investment aid, accompanied by a supplementary aid scheme which takes account of the specific objectives and special conditions pertaining to the type of conversion required ; Whereas, at the same time, olive growing should be restored in such a way as to encourage mechanization and, thereby, lower production costs and whereas this can best be achieved under collective schemes involving a number of holdings ; Whereas the olive groves should be restored in such a way as to maintain the quality of production at a high level or, where required, to raise it to such a level by opting for the best varieties available ; Whereas, in other areas which have been damaged by frost and which are suitable for other crops, producers should be encouraged to convert from olive growing to other forms of production which are more in keeping with market requirements and likely to find normal (") OJ No C 70, 25. 3. 1986, p. 3. (¥ Opinion delivered on 16 May 1986 (not yet published in the Official Journal). outlets, by introducing a scheme similar to that for resto- ring olive groves; Whereas the measures in question should, in order to achieve maximum effectiveness, form part of one or more olive-tree replanting and conversion schemes introduced by the Member States concerned, at the most suitable regional level ;  Whereas it should be provided that these schemes consti- tute a common measure within the meaning of Article 6 of Council Regulation (EEC) No 729/70 on the financing of the common agricultural policy (%), as last amended by Regulation (EEC) No 3769/85(*); whereas the costs incurred by Member States should be financed by the Community, subject to a limit of 30 % in the case of the replanting of olive groves and 60 % in the case of schemes to convert from olive-growing to products which can readily be disposed of on the market, HAS ADOPTED THIS REGULATION : Article 1 1. A common measure within the meaning of Article 6 of Regulation (EEC) No 729/70 of an exceptional nature is hereby introduced in order to make good the damage “to olive-growing caused by frosts in 198S5. 2. The common measure shall be implemented in areas where : — olive-growing accounts for a major share of agricul- tural production, and — at least 50 % of the olive trees suffered severe damage as a result of frost in 1985. However, to be eligible for measures for the replanting of olive groves, holdings must have suffered damage corresponding to at least 10 % of their olive trees. A list of regions with areas that may meet the require- ments laid down in the first subparagraph is given in the Annex. 3. The Community may, in accordance with Article 5, make a contribution towards the common measure by financing, via the Guidance Section of the European Agri- cultural Guidance and Guarantee Fund hereinafter referred to as ‘the Fund’, measures involving: (a) collective schemes for replanting olive groves damaged by frost; () OJ No L 94, 28. 4. 1970, p. 13. () OJ No L 362, 31. 12. 1985, p. 17.