10.9.75 OfficialJournaloftheEuropeanCommunities NoL238/17
II
(Actswhosepublicationisnotob/igatoiy)
COMMISSION
COMMISSION DECISION
of10July1975
authorizingtheFrenchRepublictograntadditionalaidstocoalminingunder­
takingsin1973andauthorizingtheFrenchRepublictograntaidstocoal
miningundertakings in1974
(OnlytheFrenchtextisauthentic)
(75/543/ECSC)
THECOMMISSION OFTHEEUROPEAN
COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
CoalandSteelCommunity ,andinparticularArticles
2,3,4and5thereof;
HavingregardtoCommissionDecisionNo3/71/
ECSC(')of22December1970onCommunityrules
forinterventions byMemberStatesforthebenefitof
thecoalindustry;
HavingregardtoDecisionNo73/287/ECSC(2)of25
July1973oncokingcoalandcoke,andinparticular
Article9(1)thereof;
HavingconsultedtheCouncil;
Whereason16October1974theCommission ofthe
EuropeanCommunities issuedDecisionNo74/615/ECSC(3);whereasthatDecisionauthorizedtheaids
whichtheFrenchGovernmentproposedtograntto
thecoalindustryfor1973providedtheyhadbeen
dealtwithandexamindedbytheCommission inthe
'Memorandum onadditionalfinancialaidawardedby
MemberStatestothecoalindustryin1972andfinan­
cialaidawardedbyMemberStatesin1973'(4);
Whereas,aswasstatedinthatMemorandum (5),the
FrenchGovernmentproposedtograntFF1323-0
millionofaidunderDecisionNo3/71/ECSCtoChar­
bonnagesdeFrance;whereasthissumincludedFF
110-9millionofaidinrespectofcokingcoal;
WhereastheFrenchGovernment inawrittenapplica­
tiondated15February1974requestspermissionto
alterortoincreasetheaidsoriginallyproposedas
follows:
(j)OJNoL335,14.12.1974,p.40.
(-4)Doc.SEC(74)1377fin.,p.11/70.
(*)Doc.SEC(74)1377fin.,p.11/78.(')0|NoL3,5.1.1971,p.7.
(-)OÌNoL259,15.9.1973,p.41.

NoL238/18 OfficialJournaloftheEuropeanCommunities 10.9.75
(inFFmillion)
Original
amountsAdditional
amountsTotal
1.Tocoveroperatinglossessustained:
(a)bythecoalfields(')
(b)bythecentraladministration9321
125.0154-9
4-51087-0
129-5
(c)overall
2.Tocoverexceptionalconversioncosts1057-1
155-0159-4
37-01216-5
192-0
Total 1212-1 196-4 1408-5
(1)Exclusiveofaidinrespectofcokingcoalbutincludingaidinrespectofcoalforpowerstations(FF74.0million).
"Whereastheaidtocoveroperatinglossesistobeapportionedasfollowsamongtheindi­
vidualcoalfields :
finFFmillion)
Nord/
Pas-de-CalaisLorraineCentre-
MidiTotal
Originalamounts
Additionalamounts436-8
—26-4212-9
37-8282-4
143-5932-1
154-9
Total 410-4 250-7 425-9 1087-0
WhereastheoverallamountofaidtotheFrenchcoal
industryin1973isthusincreasedbyFF196-4
million;Whereas,asregardstheavoidanceofseriouseconomic
andsocialdisturbancesincertainregionsofFrance,
thecriteriafortheappraisalofanincreaseintheaids
tocoveroperatinglossesarebasicallythesameas
thosealreadysetoutintheCommissionDecisionof
16October1974(2)whereasthesameregionaland
socialproblemscontinuetoexistandtheincreasein
aidthereforemeetsthecriterialaiddowninArticle
9(1)(1)ofDecisionNo3/71/ECSC;
t
Whereas,asregardsraisingtheaidstocoverexcep­
tionalconversioncostsfromFF155milliontoFF192
million,thisamountrepresentstheactualexpenditure
incurredbyCharbonnages deFranceincoveringcosts
whicharenolongerrelatedtocoalproduction ;
whereasthemeasureisthereforeinaccordancewith
theprovisionsofArticle6(1)(1)ofDecisionNo3/71/
ECSC;WhereastheincreaseinFrenchaidstocover
operatinglossesrelatesonlytotheLorraineand
Centre-Midicoalfields;whereasitwasnecessaryfor
thefollowingreasons:
-—thecostsofworkingthefieldsinquestionrose
moresteeplythanexpected,
—theaverageincomepermetrictonofoutput
increasedonlyslightlyin1973over1972(by
about3%),
—in1973theoutputofCharbonnages deFrancedid
notreachthetargetof28millionmetrictonsbut
wasonly25-7millionmetrictonssothattotal
receiptsfromthesaleofcoalweredown;
Whereasthefollowingremarksmustbemadein
respectofthecompatibility ofthetotalamountof
Frenchaidswiththeproperfunctioningofthe
commonmarket:Whereas,fortheabovereasons,operatinglosses
increased ;whereastheincreaseinaidisintendedto
covertheoperatinglossessustainedin1973;whereas
themeasureisthereforecompatiblewiththeprovi­
sionsofArticle9(2)ofDecisionNo3/71/ECSC;(2)OJNoL335,14.12.1974,p.41.

10.9.75 OfficialJournaloftheEuropeanCommunities NoL238/19
tureincurredbyCharbonnages deFranceonbehalfof
theFrenchGovernment toenablesocialmeasuresfor
thebenefitofredundantorprematurelyretiredminers
tobeimplementedinamorerationalway;whereas
thefollowingexpenditureisproposedfor1974;in
respectofminersmaderedundantbecauseofpit
closures:FF69million,inrespectofprematurely
retiredminers:FF131million,inrespectofcompen­
sationtoretiredminersundertheCANscheme:FF
51million,andinrespectofthereimbursement of
heatingcoststoprematurelyretiredminers:FF4
million:
Whereasthesesocialmeasuresareforthebenefitof
personsnolongeremployedinmining;whereasthe
aidisdesignedtocoverexpenditurewhichisnot
directlyrelatedtotheproductionandmarketingof
coal;whereasitisthereforeinaccordancewiththe
provisionsofArticle6(1)(1)ofDecisionNo3/71/
ECSC;
Whereastheaids,amountingtoFF1222-7million,
proposedbytheFrenchGovernmentfor1974to
coverlosses(comprisingFF1091-7milliontocover
thecoalfields'operatinglossesandFF131millionto
coverthelossessustainedbythecentraladministra­
tionofCharbonnages deFrance)mayberegardedas
fulfillingtheconditionslaiddowninArticle9ofDeci­
sionNo3/71/ECSC;whereasin1974therevenue
fromproductionwillprobablycoveronaverage75%
ofthetotalproductioncostsincurredbytheFrench
pits;—therehasbeennonoticeabledeclineintradein
coalbetweenFranceandtheotherCommunity
countries,
—industrialusersofcokingcoalandboilercoal
receivenoindirectaidsasaresultofartificially
lowpricesforFrenchcoal;
WhereastheincreaseinFrenchaidsfor1973as
proposedmaythereforebeconsideredascompatible
withtheproperfunctioningofthecommonmarket;
Whereas,inaddition,theFrenchGovernment has
informedtheCommission underArticle2ofDecision
No3/71/ECSCoffinancialmeasures,bothdirectand
indirect,whichitproposestotakein1974forthe
benefitofthecoalindustry;whereasofthose
measurestheaidslistedbelowrequireauthorization
undertheabovementioned Decision;
WhereastheFrenchGovernmentproposestograntto
Charbonnages deFrancein1974aidamountingtoFF
255milliontocoverexceptionalconversioncosts;
whereasthetotalamountistobeapportionedamong
theindividualcoalfieldsasfollows:Nord/Pas-de­
Calais:FF157million,Lorraine:FF23million,
Centre-MidiFF75million;whereastheaidrepre­
sentsareimbursement ofthecostofsocialmeasures
implemented byCharbonnages deFranceforthe
benefitofredundantorprematurelyretiredminers;
WhereastheFrenchGovernment alsoproposesto
granttoCharbonnages deFrancein1974aid
amountingtoFF1091-7millionforthepurposeof
enablingtheeconomicrestructuringofthecoalfields
tobecarriedoutatasuitablerate;
Whereas,lastly,theFrenchGovernmentproposesto
granttoCharbonnages deFrancein1974additional
aidamountingtoFF131milliontocoveroutstanding
ornewlosses;whereasthisaidisintendednotforthe
coalfieldsbutforthecentraladministration ofChar­
bonnagesdeFranceinordertocoveroutstanding
lossesortopreventlossesincreasinginthefutureasa
resultofinterestonfurtherloans;whereasthecentral
administration hasbeenobligedtocontractloans,
evenafterthegrantofaid,inordertomeetitscurrent
obligations ;
Whereastheabovementioned aidsmeetthecriteria
laiddowninArticles6and9ofDecisionNo3/71/
ECSCinrespectoftheadmissibility ofsuchState
assistance ;
Whereastheaidtocoverexceptionalconversioncosts
representsareimbursement ofnon-operating expendi­Whereastheprofitabilityofindividualcoalfields
varies;whereas,althoughlossesintheLorrainefield
arefairlysmall,thereisstillalargenumberofunprofi­
tablepitsintheNord/Pas-de-CalaisandCentre-Midi
fields;whereasthegeneralincreaseinenergyprices
hascausedtheFrenchGovernmenttocarryoutan
examinationandreappraisalofitscoalreserves;
whereasthepropectsoftheLorrainefieldwereconsid­
eredtobegood;whereas,therefore,aidsforthe
Lorrainefieldareintendedtopreventtemporaryshor­
tagesofcokingcoalfortheFrenchsteelindustry,
whereas,however,inthecaseoftheNord/Pas-de­
CalaisandCentre-Midifields,regionalandsocialdiffi­
cultiesaretheprimeconsideration ;whereasbecause
theoutlookforthesefieldswaslesspromisingthree
pitswerecloseddownin1974;
Whereas,inviewoftheabovecircumstances ,theaids
proposedbytheFrenchGovernment for1974to
coveroperatinglossesmayberegardedasfulfilling
theconditionslaiddowninArticle9(1)(1)and(2)of
DecisionNo3/71/ECSC;

NoL238/20 OfficialJournaloftheEuropeanCommunities 10.9.75
HASADOPTEDTHISDECISION :
Article1
TheFrenchGovernmentisherebyauthorizedtogrant
totheFrenchcoalindustrythefollowingadditional
aidsfor1973:
(a)FF154-9milliontocoveroperatinglosses;
(b)FF37milliontocoverexceptionalconversion
costs;
(c)FF4-5milliontocoverlossessustainedbythe
centraladministration ofCharbcsnnages deFrance.
TheFrenchGovernmentisherebyauthorizedtogrant
totheFrenchcoalindustryinrespectofthecalendar
year1974thefollowingaids:
(a)FF1091-7milliontocoveroperatinglosses;
(b)FF255milliontocoverexceptionalconversion
costs;
(c)FF131milliontocoverlossessustainedbythe
centraladministration ofCharbonnages deFrance.
Article2
TheFrenchRepublicshallsupplytheCommissionby
15November1975atthelatestwithfullparticulars
regardingtheaidsgrantedpursuanttothisDecision,
inparticulartheamountspaidandthemannerin
whichtheywereapportionedandthenatureand
scopeoftherationalization measuresundertaken .
Article3
ThisDecisionisaddressedtotheFrenchRepublic.Whereasitmustbepointedout,furthermore ,thatthe
aidstocoverlossesonmineoperationandlosses
sustainedbythecentraladministration ofCharbon­
nagesdeFrancedonotexceedtheestimatedactual
operatinglossesandarethereforeinaccordancewith
theprovisionsofArticle9(2)ofDecisionNo3/71/
ECSC;
WhereastheaidsproposedbytheFrenchGovern­
mentfor1974arenotsuchastoimpairtheproper
functioningofthecommonmarket,althoughthetotal
amountofaidcalculatedinaccordancewithArticles6
to9ofDecisionNo3/71/ECSCisFF62-88(9-98
unitsofaccount)permetrictonproducedandisthus
relativelyhighincomparisonwiththeaidsforthe
GermanandBritishcoalindustries ;
Whereasthisconclusionisbasedonthefollowing
findings:
—therehasbeennonoticeabledeclineintradein
coalbetweenFranceandtheotherCommunity ,
countries,
—thenumberofpricealignmentagreementsis
small,
—industrialusersofcokingcoalandboilercoal
receivenoindirectaidsasaresultofartificially
lowpricesforFrenchcoal,
—theclosureofunprofitablepitsleadstorationaliza­
tionandtheconcentration ofproductioninpits
whereproductivityishighest;
Whereasinthelightoftheabovetrendsitmaybe
concludedthatthecompetitivepositionoftheFrench
coalindustrywillnotchangein1974,eitheras
regardstherelativepositionsoftheindividualFrench
coalfieldsorasregardstheirpositionvis-d-visother
Communitycoalfields;
Whereasthisappliesevenwhenaccountistakenof
theaidspaidtocoalminesunderDecisionNo
73/287/ECSC;
WhereasunderArticle11(1)ofDecisionNo3/71/
ECSCtheCommission mustensurethattheaidsauth­
orizedareusedforthepurposesetoutinArticles6to
9ofthatDecision;whereastothisenditmustbe
informedinparticularoftheamountandapportion­
mentofsuchaids,DoneatBrussels,10July1975.
FortheCommission
ThePresident
Fran?ois-Xavier ORTOLI