In accordance with the provisions of art. 15.3 of Law 30/1992, of 26 November, of the Legal Regime of Public Administrations and of the Common Administrative Procedure, is given to the Agreement of Management Encomienda of Management undersigned between the Presidency of the Spanish Guarantee Fund Agrarian, the Ilmo. Mr Secretary-General for Agriculture and Food and the Ilmo. Mr Director-General of the National Institute for Agricultural and Food Research and Technology, in relation to aid for the improvement of the quality of olive oil and table olives.

Madrid, November 29, 2004. -The President, P.S.R. [Art. 4.3 (a) The FEGA Statute, approved by R. D. 1441/01, 21-12-01 B.O.E. 14-1-2002], the Secretary-General, Luis Gonzalez-Quevedo Tejerina.

AGREEMENT ON MANAGEMENT BETWEEN THE GENERAL SECRETARIAT OF AGRICULTURE AND FOOD, THE SPANISH AGRICULTURAL GUARANTEE FUND AND THE NATIONAL INSTITUTE OF AGRICULTURAL AND FOOD RESEARCH AND TECHNOLOGY AID FOR THE IMPROVEMENT OF THE QUALITY OF OLIVE OIL AND TABLE OLIVES

In Madrid, 18 November 2004.

UNITED

On one side: The Ilmo. Mr Fernando Moraleda Quilez, in his capacity as Secretary General of Agriculture and Food of the Ministry of Agriculture, Fisheries and Food, for which he was appointed by Royal Decree 676/2004 of 19 April, BOE of 20 April.

On the other hand: The Ilmo. Mr Francisco Mombiela Muruzabal, in his capacity as President of the Spanish Agricultural Guarantee Fund, for which he was appointed by Royal Decree 995/2004 of 30 April 2004 BOE of 1 May. On the other hand: The Ilmo. Mr. Mario Gómez Pérez, in his capacity as Director General of the National Institute of Agricultural and Food Research and Technology, a position for which he was appointed by Royal Decree 1879/2004, of September 6, BOE of September 7. The comparators in the quality that act are recognized with the sufficient powers for the granting of this Convention and for this purpose.

EXPOSE

That the General Secretariat of Agriculture and Food, hereinafter the General Secretariat, has full powers in the field of agricultural and livestock production and markets, as well as in plant health, as stated in the article 5 of Royal Decree 1417/2004 of 11 June, for which the basic organic structure of the Ministry of Agriculture, Fisheries and Food is developed.

That the Spanish Agricultural Guarantee Fund, in what follows FEGA, an autonomous agency attached to the Ministry of Agriculture, Fisheries and Food, hereinafter FEGA, is the body authorized by the European Union to act as paying agency on a national basis, in accordance with Article 2 of the R.D. 327/2003 of 14 March, which regulates the arrangements for paying agencies and coordination with the EAGGF Guarantee Section. The National Institute of Agricultural and Food Research and Technology, hereinafter INIA, has as its function to manage and execute the competencies of the General Administration of the State in the area of scientific research and innovation Technological development in agriculture and food. As provided for in Article 2 (2) (a) of Commission Regulation (EC) No 528/1999 of 10 March, as amended by Commission Regulations Nos 593/2001 and 629/2003 laying down measures to improve the quality of the production of olive oil and table olives, which within the actions to be carried out in the annual programme shall be carried out in the fight against the olive fruit fly and, where appropriate, other harmful organisms, including the control mechanisms, alert and assessment. In accordance with Article 1, the Ministry of Agriculture, Fisheries and Food, for the 2004-2005 marketing year, issued the order APA/1122/2004 of 28 April approving the programme to improve the quality of olive oil production. and table olives, in which it is established that it corresponds to the General Secretariat of Agriculture and Food through the Directorate General of Agriculture, the management and control of the control system, alert and evaluation of the fly of the Olive tree, provided for in Subprogramme I. 1.; to the Directorate-General for Agri-Food Industry and Food coordination; and to INIA the management and control of the research projects included in the VII.1 Subprogram. In order to comply with the requirements laid down for the paying agencies by Commission Regulation (EC) No 1663/1995 of 7 July 1995, the tasks of authorising, implementing and accounting for payments are the responsibility of the FEGA. delegated the functions of authorisation and technical services as set out in the Annex. The interveners

AGREE

First. Content.-The functions of authorization of payments and those resulting from the technical service provided for in Regulation (EC) No 1663/1995 of the Commission of 7 July 1995 on the management and control of the research projects of the Subprogram VII.1 and the System of Control, Alert and Evaluation of the Olive Fly of Subprogram I that correspond to the FEGA, will be carried out by the National Institute of Agricultural and Food Research and Technology, hereinafter INIA and by the General Secretariat for Agriculture and Food, hereinafter the General Secretariat, respectively.

Second. Regulations applicable. The content and requirements for the exercise of those tasks shall be that provided for in the Community Regulation, obliging the General Secretariat and the INIA to comply with all the requirements for the exercise of the functions as set out in the following paragraph. Third. Functions to be developed. -During the pre and post-authorization phases of the payment of the aid, the General Secretariat and the INIA will carry out, within the subprograms that each of the aforementioned Units must develop, the following functions:

Check that the application has been submitted within the time limits set by the Community or national regulations that develop it.

Check that the required documents have been submitted. Propose the appropriate payment or its refusal and refer it, together with the precise documentation, to the FEGA and in particular as regards the certificate of admissibility and report of the results of the checks provided for in paragraph 4 (iv) of the Annex to Regulation (EC) No 1663/1995, within the time limits laid down for the aid. In the event that the controls are carried out by the Autonomous Communities, they shall be carried out under the coordination, supervision and control of the Management Unit of the General Secretariat, which shall be responsible for the conditions of authorization. provided for in the said Annex. Check that the requirements set out in the Community regulations have been met for each aid. Keep the documentation at the disposal of the FEGA. Carry out or propose, where appropriate, the necessary inspections to verify the facts which serve as a basis for the payments, by means of the checks at the places where the facts take place. Send to the FEGA in accordance with point 4 of the Annex to Regulation (EC) No 1663/1995 and before 1 September each year, a report as complete as possible indicating the following aspects:

Controls that have been performed.

Risk criteria that have been used, if applicable. Scope of the controls. Evaluation of the controls and their monitoring. Procedures that have been followed in case of litigation.

Issue written instructions that are accurate for the use of control lists in the preparation of payment proposals, adequate security and computer controls, administrative checks and physical tests to be performed.

Define the necessary data for each of the proposed payments according to the requirements of the Commission Regulation (EC) 2390/1999 of 25 October, to fill in the "table of crosses" established in the same. Fourth. Procurement files. -Where appropriate, the processing of a procurement file for the determination of any expenditure to be met from the budget concept 470, of expenditure of the FEGA and, for which the award is due be made through the appropriate procurement procedure, without prejudice to the foregoing, the General Secretariat or the INIA, within each of the Subprogrammes that correspond to it, shall make the relevant proposal, with input from the technical conditions signed and which the same has as appropriate, corresponding to the paying agency the processing of the appropriate procedure, the monitoring, development and implementation of the contractual relationship in the procurement file, irrespective of the practice of the control inspections required for the verifications of the facts on the basis of which the expenditure is incurred, which shall be sufficient, in cases where the payments are made without the need for a procurement procedure. Fifth. Audit.-The internal audit services of the FEGA, as a paying agency, shall carry out the checks at the managing unit of the General Secretariat and INIA which it considers necessary to ensure that the Community funds have been properly used. Sixth. Duration. This Convention is established for the years 2004-2005 and 2005-2006. Having its start for each campaign from 1 May of the present year. Seventh. Extensions.-Without prejudice to the above clause, the parties may extend the duration of this Convention for successive campaigns. Eighth. Applicable rules.-The references made to the Community Regulations in this Convention, as well as to the internal rules which it develops, shall be construed as being made for those other than those who subsequently modify or supplement them.

And, in proof of conformity and for the due constancy, the present Encomienda de Gestion is signed in triplicate and, in all its leaves, in the place and date of the heading. -By the FEGA, the President, Francisco Mombiela Muruzabal. -For the General Secretariat of Agriculture and Food, the Secretary General, Fernando Moraleda Quilez. -For the INIA, the Director General, Mario Gómez Pérez.