OfficialJournaloftheEuropeanCommunities 49
NoL161/14 OfficialJournaloftheEuropeanCommunities 19,7.71
COMMISSION DECISION
of23June1971
ontheauthorizationofatariffagreementbetweentheSociéténationaledescheminsde
ferfrançais(SNCF)andtheSocietedesaciériesréuniesdeBurbach,Eich,Dudelange
(ARBED)forthecarriageofironorefromBoulangeandAlgrangetoAudun-le-Tiche -
Mont(siding)andontheauthorization ofFranco-Luxembourg tariffNo3530-04
applicabletothecarriageofironorefromBoulangetoEsch/Belval
(OnlytheFrenchtextisauthentic)
(71/260/ECSC)
THECOMMISSION OFTHEEUROPEAN
COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuro­
peanCoalandSteelCommunity (ECSC),andin
particularArticles2to5and70thereof;
Havingregardtotheletterof29October1969from
theOfficeofthePermanentRepresentative ofFrance
totheEuropeanCommunities ,inwhichtheFrench
GovernmentrequeststheCommission,pursuantto
thefourthparagraphofArticle70oftheECSC
Treaty,toauthorizeatariffagreementbetweenthe
SNCFandARBEDforthecarriageofironoreby
completetrainloadsfromBoulangeandAlgrange
toAudun-le-Tiche-Mont (siding);
Havingregardtotheletterof3February1970from
theOfficeofthePermanentRepresentative of
FrancetotheEuropeanCommunities,inwhichthe
FrenchGovernmentrequeststheCommisison ,pur­
suanttothefourthparagraphofArticle70ofthe
ECSCTreaty,toauthorizeFranco-Luxembourg Ta­
riffNo3530-04applicabletothecarriageofironore
bycompletetrainloadsfromBoulangetoEsch/
Belval;
Havingregardtotheletterof7December1970from
theOfficeofthePermanentRepresentative ofLuxem­
bourgtotheEuropeanCommunitiesinwhichthe
LuxembourgGovernmentjoinswiththeFrenchGov­
ernmentinrequestingauthorizationforTariffNo
3530-04;
Whereas,intheirrequestsandaccordingtothead­
ditionalinformationsuppliedintheletterof25Sep­
tember1970fromtheOfficeofthePermanentRe­
presentativeofFrancetotheEuropeanCommunities
andinthecourseofameetingheldon22and23
October1970withaFrenchdelegation,theFrench
andLuxembourgGovernmentscite,insupportofthe
tariffagreementandofTariffNo3530-04,thein­
terestsoftherailwaysconcerned(SNCFandCheminsdeferluxembourgeois-CFL);whereasthegranting
ofappropriatetariffreductionsisintendedtoprevent
thecreationofaprivatemeansoftransportforthe
carriageofironfromBoulangeand,asregardsthe
carriageoforesfromAlgrange,thediversionofore
procurementtoothermines,utilizingexistingprivate
meansoftransport;
Whereas,forthecarriageoforefromBoulange,
ARBEDhasavailableanundergroundrailwaylink­
ingtheFerdinandminewiththeEsch/Belvalfactory,
onwhichlargequantitiesoforewerepreviouslycon­
veyedfrompitsnowclosed;whereas,toreachthe
pitsstillbeingworked,itwouldbenecessarytoex­
tendthelineanother2kmandinstallaconveyor
belt1-2kmlong,forwhichthenecessarycomponents
arealreadyavailable;whereas,intheabsenceofap­
propriatetariffreductions,ARBEDplanstoproceed
forthwithwiththesealterations,whichwouldcost
altogether5-76millionFrenchfrancs,includingthe
purchaseofadditionalvehiclesandhandlingequip­
ment,andcouldbecarriedoutquickly;whereasthe
railwaysconcernedwouldtherebylose1-2million
metrictonsoftrafficperyear;
WhereasthecarriageoforefromAlgrangeisthreat­
enedbecauseARBEDintendstoclosetheBurbach
mine,theironcontentoftheminetteextractedthere­
frombeinglowerthanthatoftheoreofothermines
andthedepositbeingnearlyexhausted;whereas
aftertheclosureoftheBurbachmine,ARBEDwill
procureacorresponding tonnagefromothermines
whichitowns,situatedclosertotheEsch/Belval
blastfurnaces,inparticularfromtheMontrouge
mine;whereas,inthatcase,transporttotheblast
furnacesatEschwillbeeffectedbytheexistingpri­
vatemeansoftransport;whereas,nevertheless,AR­
BEDwillcontinuetousetherailwayforthecarriage
ofanannualquantityof500000metrictonsofore
fromtheBurbachmineuntilthereservesofthat
mineareexhausted,ifappropriatetariffreductions
aregrantedtothecompany;

50 OfficialJournaloftheEuropeanCommunities
WhereasthereisnodoubtthatARBEDcanimple­
mentitsplantoclosetheBurbachmineandprocure
corresponding quantitiesofironorefromthemines
nearertotheEsch/Belvalblastfurnacesandinparti­
cularfromtheMontrougemine,usingprivatemeans
oftransport;whereas,shouldusebemadeofthe
undergroundrailwaybelongingtotheundertaking,
thecostoftransportingironorefromtheMontrouge
minewouldbeevenlowerthanthepricesfixedin
.theSNCF-ARBEDtariffagreementontheAlrange-
Audun-le-Tiche-Mont (siding)link;whereasinthe
absenceoftariffreductions,theSNCFriskslosing,
withoutanycompensation ,trafficonwhichitcould
continuetocountforacertainperiod;
Whereasthetariffmeasurescontemplated donot
affectthecompetitivepositionofproducersand
usersofironorewithintheCommunity;whereas
theyamountmerelytoareductioninintragroup
transportcostscomparabletothatwhichtheunder­
takingitselfcouldobtaininotherwaysbyitsown
means;
Whereasinthesecircumstances thetariffmeasures
contemplatedarenotcontrarytotheprinciplesof
theECSCTreaty;
WhereastheCommisionmustbefreetoreviewits
Decisionifthefactorsonwhichitisbasedchange
ornolongerobtain,
HASADOPTEDTHEFOLLOWING DECISION :
Article1
ThetariffagreementconcludedbetweentheSociete
nationaledescheminsdeferfrançais(SNCF)and
theSocietedesaciériesréuniesdeBurbach,Eich,
Dudelange(ARBED)forthecarriageofvironore
fromBoulangeandAlgrangetoAudun-le-Tiche-Mont
(siding),andtheFranco-Luxembourg TariffNo
3530-04applicabletothecarriageofironorefrom
BoulangetoEsch/Belval,areherebyauthorized.Whereasunderthetariffagreementtheordinary
SNCFtariffwouldbereduced,forthecarriageof
ore,by10%ontheBoulange-Audun-le-Tiche-Mont
(siding)link,andby9%ontheAlgrange-Audun-le -
Tiche-Mont (siding)link,andunderTariffNo
3530-04therewouldbeareductionof35-7%on
ECSCinternationaltariffNo1001forthecarriageof
oreontheBoulange-Esch/Belvallink;
WhereasthefourthparagraphofArticle70ofthe
ECSCTreatyprovidesthattheprioragreementof
theCommissionisrequiredfortheapplicationof
specialratesandconditionsintheinterestofoneor
morecoal-orsteel-producing undertakings ;whereas
thatprovisionrelatesnotonlytospecialtariffs.
adoptedintheinterestofsuchundertakings ,butto
anyspecialtariffswhich,whateverthereasonfor
theirintroduction ,happentobeofadvantagetoone
ormoreofthem;whereastheagreementoftheCom­
missionmustbegivenifthespecialtariffscomply
withtheprinciplesoftheTreatyandwhereassuch
compliancemayasageneralrulebepresumedwhere
thespecialtariffsarejustifiedspecificallybythe
conditionsofthetransportmarket;whereasthein­
terestofacarrierinapplyingaspecialtariffinorder
toretaincertaintrafficmust,however,bedisregarded
iftheproperfunctioningofthecommonmarketin
coalandsteel,aslaiddownintheECSCTreaty,so
requires;
WhereastheSNCF/ARBEDtariffagreementand
TariffNo3530/04arecoveredbythefourthpara­
graphofArticle70oftheECSCTreaty,byreasonof
theirlimitedscopeandthefactthattheyareinthe
interestoftheBurbachandFerdinandoreminesand
consequentlyofARBED,asteel-producing under­
taking;
WhereastheinterestoftheSNCFandoftheCFLin
maintainingthe.trafficinquestioncannotbedenied;
whereasthetrafficisprofitableasitinvolvesatotal
of1-7millionmetrictonsperyearcarriedunder
advantageousoperatingconditionsbycompletetrain
loadsinprivatelyownedwagons;whereas,even
allowingfortheproposedtariffreductions,this
transportoperationremainsprofitablefortherail­
ways;
Whereas,inthepresentcase,theriskofcompetition
fromaprivatetransportline,whichARBEDcould
setup,isarealone;whereasitsconstructionraises
nopracticalproblemsanddoesnotrequireexcep­
tionalinvestmentbyARBED;whereas,furthermore ,
theconstructionandoperationofsuchameansof
transportwouldbeprofitableinviewoftherela­
tivelylowcostoftransportingtheoreinquestion;
whereasequivalenceofthesecostsandthecontem­
platedrailchargesisrespected;Article2
IftheCommission findsthatthisDecisionisno
longerjustified,itshallbeamendedorrepealed.
Article3
ThisDecisionisaddressedtotheFrenchRepublic
andtheGrandDuchyofLuxembourg .
DoneatBrussels,23June1971.
FortheCommission
ThePresident
FrancoM.MALFATTI