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COMMISSION RECOMMENDATION No 1946/84/ECSC

of 6 July 1984

to the Member States extending the period of application of recommendation No 1835/81/ECSC on the obligation to publish price lists and conditions of sale and on prohibited practices in the steel trade

THE COMMISSION OF THE EUROPEAN

COMMUNITIES,

Having regard to the Treaty establishing the European Coal and Steel Community, and in particular Article 63 (3) and the first and second paragraphs of Article 95 thereof,

The period of application of recommendation No 1835/81/ECSC (1), as amended by recommendation No 1518/82/ECSC (2), expires on 30 June 1984;

The Community steel market, on which distributive undertakings and dealers play an important role, is still affected by the state of manifest crisis persisting in the Community steel industry;

In order to combat the further sharp erosion of prices over the second half of 1983, the Commission had to extend its measures regarding output and capacity and reinforced them by introducing further restrictive measures;

The monitoring and production quota system set up under Article 58 has been extended, without substantial change, until 31 December 1985 by virtue of Decision No 234/84/ECSC (3);

Moreover, in Decisions No 3715/83/ECSC, No 3716/83/ECSC and No 3717/83/ECSC (4), which are warranted only while the production quota system remains in force, the Commission:

- fixed minimum prices for deliveries of certain steel products by steel undertakings, with effect from 1 January 1984,

- established a guarantee system and a system for the verification of the minimum prices for the abovementioned steel undertakings, and

- introduced a production certificate and an accompanying document for deliveries of certain products for steel undertakings and steel dealers;

All the Member States recognize that the production quota system set up under Article 58 until the end of 1985 and the abovementioned measures to reinforce it are essential to the restructuring process and to achieving the production cutback targets, fixed for the steel industry, which Member States are required to attain by the abovementioned date;

The situation on the steel market is not expected to deteriorate any further in 1984, though there is still a marked imbalance between supply and demand which warrants maintaining the obligations concerning steel dealers' business practices;

The rules laid down by recommendation No 1835/81/ECSC should be extended to apply until 31 December 1985 like the other main measures taken to combat the crisis;

After consulting the Consultative Committee and with the assent of the Council acting unanimously in respect of the prohibition on alignment,

HAS ADOPTED THIS RECOMMENDATION:

Article 1

In the first sentence of Article 1 of recommendation No 1835/81/ECSC '30 June 1984' is hereby replaced by '31 December 1985'.

The Member States shall inform the Commission of the measures taken not later than 1 October 1984.

Article 2

This recommendation shall be notified to the Member States and published in the Official Journal of the European Communities.

Done at Brussels, 6 July 1984.

For the Commission

Étienne DAVIGNON

Vice-President

(1) OJ No L 184, 4. 7. 1981, p. 9.

(2) OJ No L 169, 16. 6. 1982, p. 5.

(3) OJ No L 29, 1. 2. 1984, p. 1.

(4) OJ No L 373, 31. 12. 1983, pp. 1, 5 and 9.