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Whereas Portugal suffered a severe drought between Autumn 1991 and Spring 1992 resulting, on the one hand, in almost total loss of the cereals harvest in certain regions and, on the other, in particular high additional costs for the feeding of cattle, sheep, goats and horses in certain regions; whereas special aid schemes were introduced to mitigate the resulting loss of income to the producers concerned; Whereas the drought continued until Spring 1993 in certain regions, with similar economic consequences for cereals producers and stockfarmers; whereas provision should therefore be made for special aid measures similar to those taken under Council Regulation (EEC) No 3311/92 of 9 November 1992 on special measures for farmers affected by the 1991/92 drought in Portugal (3);

Whereas the economic consequences of the drought could slow down the integration of Portuguese agriculture into the common market organizations; whereas, in order to support Portuguese efforts to overcome the difficulties, the European Agricultural Guidance and Guarantee Fund, (EAGGF) Guarantee Section, should make a financial contribution to the aid in question not exceeding the appropriations entered in the general budget of the European Communities for financing the measures provided for in Regulation (EEC) No 3311/92 and carried over from 1993 to 1994 for the purpose; Whereas, in addition, the Portuguese Republic should continue to be authorized to grant aid from the national budget for producers keeping horses in the regions most severely affected by the drought, HAS ADOPTED THIS REGULATION: TITLE I Measures to assist cereals producers