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COMMISSION DECISION

OF 27 MARCH 1979

EXTENDING FOR THE SECOND TIME DECISION 75/356/ECSC AUTHORIZING THE APPLICATION OF SPECIAL TARIFF MEASURES TO THE CARRIAGE BY RAIL OF IRON ORE FROM LORRAINE AND WESTERN FRANCE TO BELGIUM , LUXEMBOURG AND THE SAAR

( ONLY THE FRENCH AND GERMAN TEXTS ARE AUTHENTIC )

( 79/411/ECSC )

THE COMMISSION OF THE EUROPEAN COMMUNITIES ,

HAVING REGARD TO THE TREATY ESTABLISHING THE EUROPEAN COAL AND STEEL COMMUNITY , AND IN PARTICULAR ARTICLE 70 THEREOF ,

WHEREAS THE APPLICATION OF REDUCED RATES TO THE CARRIAGE BY RAIL OF FRENCH IRON ORE TO BELGIUM , LUXEMBOURG AND THE SAAR HAS BEEN AUTHORIZED AND EXTENDED BY A NUMBER OF DECISIONS OF THE HIGH AUTHORITY OF THE ECSC AND OF THE COMMISSION ( 1 ) , OF WHICH THE MOST RECENT , DATED 24 APRIL 1975 AND APPLICABLE UNTIL 31 DECEMBER 1976 , WAS EXTENDED TO 31 DECEMBER 1977 BY THE COMMISSION DECISION OF 23 DECEMBER 1977 ( 2 ) ;

WHEREAS , BY LETTERS DATED 7 DECEMBER 1978 , 1 FEBRUARY 1979 AND 15 FEBRUARY 1979 , FROM THE OFFICES OF THE PERMANENT REPRESENTATIVES OF FRANCE , GERMANY AND LUXEMBOURG RESPECTIVELY TO THE EUROPEAN COMMUNITIES , THE FRENCH , GERMAN AND LUXEMBOURG GOVERNMENTS ADDRESSED A REQUEST TO THE COMMISSION TO EXTEND THE SPECIAL TARIFF MEASURES UNTIL 31 DECEMBER 1980 , WITH THE SAME TARIFF REDUCTIONS AS THOSE APPLIED UNTIL 31 DECEMBER 1977 ;

WHEREAS IN THEIR REQUESTS THE GOVERNMENTS CONCERNED POINTED OUT THAT :

- THE CIRCUMSTANCES WHICH GAVE RISE TO PREVIOUS AUTHORIZATIONS GRANTED BY THE COMMISSION STILL PREVAIL TODAY ,

- THE SITUATION AS REGARDS FRENCH IRON ORE HAS WORSENED BECAUSE OF THE CRISIS AFFECTING THE COMMUNITY IRON AND STEEL INDUSTRY ,

- THE RESTRUCTURING OF THE IRON AND STEEL INDUSTRY IN LORRAINE , BELGIUM , LUXEMBOURG AND THE SAAR , WHICH IS NOT YET COMPLETE , WILL MEAN CONSIDERABLE REDUCTION IN THE CAPACITY OF THE FRENCH IRON MINES , WHICH WILL CAUSE SERIOUS INDUSTRIAL , ECONOMIC AND SOCIAL PROBLEMS ,

- THE COMPETITION FACING FRENCH ORE SALES PERSISTS AND HAS EVEN BEEN INTENSIFIED , PARTICULARLY BY THE GENERAL DROP IN THIRD COUNTRY ORE PRICES , CHIEFLY OF SWEDISH PHOSPHOROUS ORE ,

- AN EXTENSION OF THE TARIFF MEASURES CONCERNED WOULD AVOID A DRASTIC SLUMP IN THE SALES OF LORRAINE ORE AND WOULD THUS CONTRIBUTE TOWARDS A MORE ORDERLY RESTRUCTURING OF MINING CAPACITY IN ORDER TO ADAPT IT TO FORESEEABLE LONG-TERM REQUIREMENTS ;

WHEREAS THE CIRCUMSTANCES INVOKED BY THE GOVERNMENTS CONCERNED APPEAR TO BE BEYOND QUESTION ;

WHEREAS , IN THE CONTEXT OF THE SUPPLY OF COMMUNITY RAW MATERIALS , IT IS CLEARLY OF INTEREST TO THE COMMUNITY IRON AND STEEL INDUSTRY THAT THE FRENCH IRON MINES SHOULD CONTINUE TO BE WORKED , SO THAT ITS SOURCES OF SUPPLY ARE , TO A CERTAIN EXTENT , GUARANTEED AGAINST THE RISKS ASSOCIATED WITH IMPORTS FROM NON-MEMBER COUNTRIES ;

WHEREAS THE EXTENSION OF THE TARIFF MEASURES IN QUESTION HELPS TO AVOID DISTURBANCES IN THE EMPLOYMENT MARKET , WHICH IS PARTICULARLY AFFECTED BY THE RESTRUCTURING ALREADY CARRIED OUT AND THE FURTHER MEASURES PLANNED ;

WHEREAS UNDER THESE CIRCUMSTANCES THE MEASURES ARE NOT CONTRARY TO THE PRINCIPLES OF THE ECSC TREATY , AS THEY DO NOT DISTURB THE COMMON MARKET IN ORE PRODUCTION , NOR DO THEY DISTORT COMPETITION BETWEEN THE PURCHASERS OF ORE , SINCE THE LATTER CAN ALWAYS OBTAIN ORE SUPPLIES ON AT LEAST EQUAL TERMS FROM NON-MEMBER COUNTRIES ;

WHEREAS THE COMMISSION MUST RESERVE THE RIGHT TO REVIEW ITS DECISION WHENEVER THE CIRCUMSTANCES GIVING RISE TO IT CHANGE OR NO LONGER APPLY ,

HAS ADOPTED THIS DECISION :

ARTICLE 1

IN ARTICLE 1 OF DECISION 75/356/ECSC THE DATES " 31 DECEMBER 1977 " AND " 31 DECEMBER 1976 " ARE REPLACED BY " 31 DECEMBER 1980 " AND " 31 DECEMBER 1977 " RESPECTIVELY .

ARTICLE 2

THIS DECISION IS ADDRESSED TO THE FEDERAL REPUBLIC OF GERMANY , THE FRENCH REPUBLIC AND THE GRAND DUCHY OF LUXEMBOURG .

DONE AT BRUSSELS , 27 MARCH 1979 .

FOR THE COMMISSION

RICHARD BURKE

MEMBER OF THE COMMISSION

( 1 ) LORRAINE - SAAR :

DECISION NO 13-67 OF 7 JUNE 1967 ( OJ NO 116 , 17 . 6 . 1967 , P . 2249/67 ) ;

DECISION 74/302/ECSC OF 22 MAY 1974 ( OJ NO L 171 , 27 . 6 . 1974 , P . 2 ) .

LORRAINE - BELGIUM :

DECISION 68/349/ECSC OF 31 JULY 1968 ( OJ NO L 230 , 19 . 9 . 1968 , P . 8 ) ;

DECISION 73/48/ECSC OF 4 JANUARY 1973 ( OJ NO L 83 , 30 . 3 . 1973 , P . 36 ) .

LORRAINE - LUXEMBOURG :

DECISION 69/268/ECSC OF 28 JULY 1969 ( OJ NO L 220 , 1 . 9 . 1969 , P . 5 ) ;

DECISION 73/48/ECSC OF 4 JANUARY 1973 ( OJ NO L 83 , 30 . 3 . 1973 , P . 36 ) .

WESTERN FRANCE TO BELGIUM , LUXEMBOURG AND THE SAAR :

DECISION 73/49/ECSC OF 4 JANUARY 1973 ( OJ NO L 83 , 30 . 3 . 1973 , P . 38 ) .

( 2 ) DECISION 75/356/ECSC OF 24 APRIL 1975 ( OJ NO L 159 , 21 . 6 . 1975 , P . 17 ) ;

DECISION 78/103/ECSC OF 23 DECEMBER 1977 ( OJ NO L 38 , 8 . 2 . 1978 , P . 20 ) .