14 OfficialJournaloftheEuropeanCommunities
710/64 OFFICIALJOURNALOFTHEEUROPEANCOMMUNITIES 13.3.64
COMMISSION DECISION
of26February1964
authorizingthemaintenanceofAnnexBtertothe'Conditionsgénéralesd'application
destarifspourletransportdesmarchandises *(CGATM)oftheSociéténationaledes
cheminsdeferfrançais(SNCF)
(OnlytheFrenchtextisauthentic)
(64/160/EEC)
WhereasAnnexBterisforthebenefitofallcon­
signorsorconsigneesinareasservedbySNCFsta­
tionssituatedintheregionssetoutinthatAnnex;
Whereasatpresentreductionsapplyinrespectofthe
followingdepartments ;Aveyron,Cantal,Charente­
Maritime,Corrèze,Côtes-du-Nord ,Creuse,Deux­
Sèvres,Finistère,Haute-Loire,Hautes-Alpes ,Ile-et­
Viliane,Lot,Lozère,Morbihan,Puy-de-Dôme ,Tarn
andVendée,andalsoinrespectôfcertainspecified
stationsinthedepartmentsofAllier,Ardèche,the
Dordogne,Haute-Vienne andtheLoireAtlantique;THECOMMISSION OFTHEEUROPEAN
ECONOMIC COMMUNITY ,
HavingregardtotheTreatyestablishingtheEuro­
peanEconomicCommunity,andinparticularArticle
80thereof;
HavingregardtoAnnexBtertothe'Conditions
generatesd'applicationdestarifspourletransport
desmarchandises'(CGATM)oftheSNCF,inits
presentformaspublishedintheratesandconditions
of10June1963(JournalOfficialdelaRepublique
frangaiseNo131of6June1963);
HavingregardtotheopinionsexpressedbytheGov­
ernmentsoftheMemberStatesconcernedduringthe
consultationundertakenbytheCommissionpursuant
toArticle80(2)oftheTreatyon29Octoberand5
December1963;
IWhereasthattariffappliesinrespectofgoodstraffic
betweentheregionsconcernedandothercountries;
Whereasthereductionsappliedinaccordancewith
AnnexBter,dependingonthetransportlink,the
producttransportedandthemethodofdispatch,
amountto5,10,or15%ofthestandardratesap­
plicablesince1October1962;
Whereastheeffectofsuchreductionisthatratesfor
thetransportconcerned,oncertaintransportlinks,
arelowerthanthoseinforcebefore1October1962,
andwhereasthisisalsogenerallytrueforthewhole
ofBrittany;
Whereas,asregardstheeconomiceffectsonthe
SNCFofthemaintenanceofAnnexBter,carriage
underthetermsofAnnexBterrosein1961to
5778000metrictons,andwhereastheSNCFre­
ceivesnodirectcompensation frompublicfundsfor
-lossofrevenueresultingfromapplicationofthose
terms;
Whereasin1962thetonnagecarriedundertheterms
ofAnnexBterroseto1-2%ofthetotalgoodstraf­
ficof.theSNCF,andwhereastheresultantrevenue
represented3-2%ofthetotalrevenueoftheSNCF;
WhereasAnnexBterwasintroducedon1October
1962,atthesametimeasthetariffreform,andwasWhereasAnnexBtertotheCGATMisincludedin
theSNCF'sgoodstariffreformof1October1962,
whichwasthesubjectofanOpiniondeliveredon
24September1962bytheCommissionpursuantto
Article2oftheCouncilDecisionof21March1962.
InthatOpinionof24September1962theCommis­
sionreservedtoitselfthedetailedexamination ofthe
differenttariffratesandinparticularofthecorrec­
tives,inthelightofArticles79and80oftheTreaty;
WhereasAnnexBtertothe.CGATMlaysdown
specialprovisionstobeappliedtocertaingoodsdis­
patchedorreceivedatstationssituatedingiven
regions;
Whereasspecialprovisionsareappliedtocertain
goodsmainlyimportanttotheruraleconomy,such
asliveanimals,agriculturalproducts,buildingma­
terials,etc.;

OfficialJournaloftheEuropeanCommunities 15
extendedon25October1962toapplytoBrittany
andon10June1963toapplytotheeightdepart­
mentsofAveyron,Cantal,Creuse,Haute-Loire,
Hautes-Alpes ,Lozere,Puy-de-Dome andTarn,in
which,untilthatdate,theprevioustariffrateshad
continuedtoapply;
II
WhereastheFrenchGovernmenthasrecognizedthat
theprovisionsofAnnexBterwhich,from1October
1962and10June1963respectively,involvedareduc­
tionoftariffratestoalevellowerthanthatinforce
beforethosedates,mayconstitutemeasuresfalling
withinthescopeofArticle80(1)oftheTreaty;
whereasithasthereforerequestedtheCommissionto
authorizethemaintenanceofAnnexBter,inaccord­
ancewithArticle80(2);
Whereasthetariffratesinquestionapplytocarriage
withintheCommunity,includingdomestictrafficof
aMemberState;
WhereasAnnexBtertotheCGATM,sinceitwas
introducedbyregulation,mustbeconsideredasa
measureimposedbytheStatewithinthemeaningof
Article80(1)oftheTreaty;
WhereasAnnexBtertotheCGATMconstitutesa
supportfortheeconomyoftheregionsconcerned
whichcorrespondstothemeasurabledifferencebet­
weentheprevioustariffratesandthoseoftheAn­
nex;
Whereasthissupportoperatesinfavourofparticular
undertakingsorindustries,thatistosayundertakings
orindustriesdeterminedonthebasisoftheirgeo­
graphicalsituation;
Whereasontheotherhanditisnotclaimedthat
AnnexBtercontainstariffsfixedtomeetcompeti­
tionasreferredtoinArticle80(3);
Whereas,consequently ,theprovisionsofAnnexB
tertotheCGATMcomewithinthescopeofArticle
80(1);whereastheCommisison musttherefore
makeadecisioninaccordancewithArticle80(2),
ontherequestbytheFrenchGovernmentforauthor­
izationtocontinuetoapplyAnnexBtertothe
CGATM;-asystemofweightingoftariffratesbydistance,
relatedtothetechnicalcharacteristics ofthe
routesused;
-theeliminationfromthenetwork,asregards
calculationofdistances,ofsectionseitherdis­
usedorclosedtogoodstraffic;
-theabolitionofthesystemofindexingstations;
-thetariffreformmustbestudiedasawhole,in
conjunctionwiththecorrectiveswhichformedan
integralpartthereof;
-distance-related weighting,whichformspartofthe
newratesandconditions,madeapositivecontribu­
tiontoFrenchregionaldevelopment ,sincemost
regionspossessoneormorewellequippedlocal
linesonwhichgoodstrainscouldcirculateat
modestcost;inotherwaysalsothenewratesand
conditionsservedthesameend,namely,bymak­
ingthescaleofchargesmoremarkedlydegressive
asregardslong-distancetrafficwhichisdistinctly
advantageousforperipheralregionssuchasthe
Midimediterraneen andAquitaine,andbyabolish­
ingtheindexingofstationswhichimprovesthe
situationofsecondarylocalitiesonmajorlines;
-ithasemergedfromapublicinquirythatoutright
,applicationofthenewratesandconditionsmight
entailanexcessiveadditionalburdenonisolated
regionsorregionssituatedincompactmountain
masses,whereitisoftenverycostlyfortherail­
waytogiveadequateserviceoreventopenetrate
atall;suchregionsarelowproductivityareas
whoseindustries,farfromprogressingatthesame
rateastherestofthecountry,oftenfinditdiffi­
culttoremaininbusiness;themostvulnerable
industries,andinparticularthosespreadovera
widearea(largescalecultivation,stockfarming
andlightindustrythatisthegreaterpartofthe
outputofsuchregions),wouldthereforehave
beenseriouslyaffectedbyincreasedtariffrates
resultingfromincreasesinshortdistanceratesand
fromtheextensionoftariffdistancesimposedon
linesoperatinginmountainousareas;
-toapplythereformwithoutcorrectivesshould
thereforehavebeenprejudicialtolineswhererun­
ningcostsareincreasedowingtothephysical
characteristics oftheregion,andinparticularlines
servingmountainousareas,shortdistance(less
than200km)traffic,andsmallconsignments as
comparedwithcompletewagon-loads ;
-unlessregionalcorrectiveswereapplied,theeco­
nomyofthelessdevelopedregionscouldbeen­
dangeredbythereform,sincetheregionsinvolved
areinmanycasesmountainousdistrictswitha
generallyinadequateroadnetworkandtherefore
dependentontherailwayevenforshort-distance
traffic,andinwhichproductionisorganizedin
suchawaythatasubstantialpartofthetraffic
consistsofsmallconsignments ;therewasarisk
thatregionalimbalancewouldbedangerouslyin­
creasedbythetariffreform;III
WhereastheargumentsputforwardbytheFrench
Governmentinsupportofitsrequestarebasically
thefollowing:
-therecastingof1October1962bytheSNCFof
thegoodsrateswasdesignedtorelatethepriceof
eachtransportoperationtoitsactualcostby
meansof:

16 OfficialJournaloftheEuropeanCommunities
agriculture.Exceptforthecentralwestern
area,thepopulationinalltheareaschosen
haddecreasedbetween1936and1963while
theFrenchpopulationasawholehadin­
creasedby10%.Furthermore ,whereasreal
incomeinFranceincreasedby10%between
1955/56and1958,Alsace,Brittany,Limousin,
Auvergne,andPoitou-Charentes showeda
rateofincreaseoflessthan8%:
IV-theregionalcorrectivesthereforerepresentedthe
countcr-balance toabasicreformwhichranthe
riskofhavingundesirableeconomiceffectsoncer­
taintypesoftrafficorcertainareas;
-thereformasawholewasdiscusssedwithre­
presentativesoftheothermodesoftransportwho
hadraisednoobjection;
-inthelongterm,theeconomicdevelopmentap­
propriatetothephysicalcharacteristics ofthese
areascouldbepromotedbytheestablishmentof
moreextensivegoodstransportserved'byroad
withoutmeasuresofsupportbeingrequired;in
themeantime,theareasconcernedshouldnotbe
allowedtosuffertoogreataloss;suchadangeris
themorerealinthatthetariffreformoccurred
preciselyatatimewhentheeconomiesofthe
MemberStatesofthecommonmarketwerecoming
intocontact,involving ,theriskofencouragingthe
concentration ofactivitiesinanindustrialcentre
enjoyingobviousgeographical,technicalandhuman
advantages;
-theFrenchGovernmenthadconsequentlyintro­
ducedreductionsof10or15%,called'regional
correctives',infavourofcertaincategoriesofcon­
signmentsdispatchedfromorreceivedinvarious
carefullydefinedareas;
-goodstowhichsuchcorrectivesapplyaredefined
inrelationtotheproblemsofeachoftheareas
concerned;theproductsinvolvedwereprimarily
derivedfromorintendedforagricultureandthe
foodindustry;
-thechoiceofareastowhichsuchtariffsupport
'wasgrantedwasbasedonadetailedexamination
oftheeffectsofthereformonthedifferentlinesor
regionsconcerned,withreferencetothegeneral
criteriaofFrenchregionalpolicy;thegeneraltariff
reductionswerereservedtoareasprejudicedby
theintroductionofthereforminawaywhich
couldnotbemadegoodbyothermeans;
-theareaschosenwerethosewhichcombinedthe
threefollowingcharacteristics :
(1)Unfavourablegeographicalconditionsbyrea­
soneitheroftheoutlyinglocationofthose
areasinrelationtothedynamiccentresofthe
nationaleconomyandtothepolesofdevelop­
mentintheCommunity (Brittanyandthe
southernsideoftheMassifCentral),orof
theirmarkedisolation,wheresuchareasare
cutofffromthericherareasbyinadequately
developedcompactmountainmasses(Au­
vergne,Limousin,andcertainAlpinevalleys);
(2)Inadequatecommunication routes(theinte­
riorofBrittany,theMassifCentral,andcer­
taincentralwesternruralareas;
(3)Widelyscatteredeconomicactivities,which
aregeneralytheruleinpredominently agri­
culturalareas.Inthirteenofthedepartments
towhichregionalcorrectivesapply,over50%
oftheactivepopulationwereemployedinWhereasinmakingitsexamination,pursuanttoAr­
ticle80(2)oftheTreaty,ofAnnexBtertothe
'Conditionsgeneratesd'applicationdestarifspourle
transportdesmarchandises'(CGATM)oftheSNCF
theCommissionmusttakeintoaccountboththepre­
amblethereofandthegeneralobjectivesdefinedin
Articles2and3oftheTreaty,andfurtherclarified
inthepreambletotheTreaty;whereasitemerges
fromthoseprovisionsthataharmoniousdevelop­
mentofeconomicactivitiesmustbepromoted
throughouttheCommunitybyreducingthediffer­
encesexistingbetweenthevariousregionsandthe
backwardness ofthelessfavouredregions,ofwhich
theareasconcernedformpart;whereasunderAr­
ticle80(2),itisthedutyoftheCommissiontotake
accountinparticularoftherequirementsofanap­
propriateregionaleconomicpolicyandoftheneeds
ofunderdeveloped areas;
Whereasitemergedfromtheinquirythatthepro­
visionsofAnnexBtertotheCGATMareforthe
benefitofthoseunderdeveloped areasoftheCom­
munitywhoseactivityFrenchregionalpolicyisde­
signedtostimulate;
Whereastheneedtodevelopthoseregionsisindi­
cated;
-asregardsBrittany,bythefactofitsoutlyingloca­
tiori,under-industrialization andruralover-popu­
lation;
-morethanhalftheruralpopulationisengagedin
agricultureandalthoughinBrittanyrichalluvial
soilislackingpopulationdensityis10%higher
thanthatoftherichlandofPicardy.Industrially
theregionismarkedlybackward;in1959indus­
trialelectricityconsumptionpercapitawasless
thanone-fifthofthenationalaverage.From1946
to1952,totalemigrationrosetomorethan220000
persons,andstillreaches10000departuresper
year;
-asregardsthe'central-western coast(thedepart­
mentsofVendue,Deux-SevresandCharente-Mari­
time)itseconomiccharacteristics ,closelyrelated
tothoseofBrittany,withahighruralpopulation
densityandpracticallynomodernindustry.
Thenon-agricultural labouravailable,asestimated
bythePlanningCommissionbetween1961and
1966,reachesthesamecriticallevelinVendueand

OfficialJournaloftheEuropeanCommunities 17
havingtheeffectofapplyingtocertaintransportre­
ductionsofupto15%(Brittany,Hautes-Alpes,At­
lanticseaboard,CentreandMidi-Pyrenees )seemto
bemeasureswhicharenowbothnecessaryandap­
propriateundertheregionalpolicyfordevelopment
inBrittany,theMassifCentral,thecentral-western
seaboard,andcertainvalleysintheAlpsandinthe
Jura;whereasgoodswhichmaybecarriedunderthe
termsofAnnexBtertotheCGATMareessential
materials,widelyusedinallbranchesofindustry
andagricultureinthoseregions;
WhereasithasnotbeenprovedthatAnnexBterto
theCGATMaffectsthecompetitivepositionofthe
productstowhichitappliestoanextentnotjustified
bytheneedsoftheunderdeveloped areasconcerned;
whereastheexaminationcarriedouthasnotrevealed
thattheseratesandconditionshaveunfavourable
effectsoncompetitionbetweenthedifferentmodesof
transport;
Whereas,forthesereasons,thecontinuedapplication
ofAnnexBtertotheCGATMmaybeauthorized;
whereastheCommissionwhilegrantingauthorization
foranindeterminate period,retainsthepowerto
amendorrevokethisauthorization ifitfinds,ofits
ownaccordorattherequestofaMemberState,that
suchauthorizationisnolongerjustified,Deux-SevresasinBrittany,hardlyexceeding14%
oftheactivepopulation.Thisistheleasturbanized
partofFrance;thegeographyoftheregion,of
which10%ismarshland,createsdifficultiesfor
landuseplanninginareaswhichcanbedeveloped
andfortransportlinkswithotherprovincesbe­
causeofdistance,poorcommunications tothe
East,andtheneedtoskirttheMassifCentralin
ordertoreachthedynamiccentresoftheSouth­
East;
-asregardstheMassifCentral,theregionalongits
southernedge,andsomedistrictsofDordogneand
Ardfcche,byunder-population resultingfromheavy
andcontinuingemigration.
Somedepartmentshavelosthalftheirpopulation
since1851.IntheSouthandWest,theruralden­
sityisoftenlessthan20inhabitantstothesquare
kilometre.Industrialexpansionisslow,andtra­
ditionalagriculturalmethodsareemployedon
mainlyacidsoil,whosefullpotentialishowever
stillfarfrombeingexploited.Theagriculturalper
capitaincomeoffarmersisoneofthelowestin
France,becauseoftheobsoleteagrarianstructures
andagriculturaltechniques.
LaCausseandtheplateauofMillevachesarethe
mostunderprivileged areas.Although50%ofthe
activepopulationofLimousinisstillengagedin
agriculture,Auvergneandthesouthernsideofthe
MassifCentralcontainanumberofsmallscattered
pocketsofindustry.
Thedeclineofcoal-mininghascreatedadifficult
situationforthesmallindustrialdistrictsofDe­
cazeville,Carmaux,Brassac,andSaint-Eloy.There
arefewlargeundertakings .Specializedindustries
mustsellinfar-distantmarkets;hencetheneed
tosolvequicklythecommunication problem;
-asregardsthevalleysoftheAlps,bythefactthat
thereremainsomeareaswhicharepoorlyserved
forcommunications ,andinwhichtherailwaystill
hasadecisiverole,andthatagricultureinthe
isolatedvalleysoftheHautes-Alpes isnotparti­
cularlyproductive;
Whereas,havingregardtotheparticularcircum­
stancesofthoseregions,aspecificdevelopmentpo­
licywouldappeartobeinaccordancewiththeob­
jectivesoftheTreaty;whereasitisalsointhein­
terestoftheCommunitytoreducepercetibly,by
measuresofsupporttakenbytheFrenchGovern­
ment,theeconomicandsocialdisparitybetween
highlydevelopedandunderdeveloped regionsof
France;
Whereas,inthosecircumstances ,theprovisionsof
AnnexBtertotheCGATMandinparticularthoseHASADOPTEDTHISDECISION :
Article1
TheapplicationoftheprovisionsofAnnexBterto
the'Conditionsgeneratesd'applicationdestarifspour
letransportdesmarchandises'oftheSNCFasap­
pliedon5December1963,andtakingintoaccount
anyamendmentsmadetheretosincetheycameinto
force,isherebyauthorizedwitheffectfrom1Octo­
ber1962.
Article2
ThisDecisionmaybeamendedorrepealedifthe
Commission issatisfied,ofitsownaccordoratthe
requestofaMemberState,thatitisnolongerjusti­
fied.
Article3
ThisDecisionisaddressedtotheFrenchRepublic.
DoneatBrussels,26February1964.
FortheCommission
ThePresident
WalterHALLSTEIN