5.6.76 OfficialJournaloftheEuropeanCommunities NoL147/13
II
(Actswhosepublicationisnotobligatory)
COMMISSION
COMMISSION DECISION
of17May1976
ontheapplicationofcertainspecialtariffsoftheLuxembourgNationalRail­
ways(CFL)favouringLuxembourgagriculture
(OnlytheFrenchtextisauthentic)
(76/507/EEC)
THECOMMISSION OFTHEEUROPEAN
COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity ,andinparticularArticle80
thereof,
WhereastheLuxembourgGovernment ,inaletter
fromtheOfficeofitsPermanentRepresentative to
theEuropeanCommunities dated18March1975,
informedtheCommissionpursuanttoArticle93(3)
oftheEECTreatyofitsintentiontograntaidto
Luxembourgagriculturebyexempting'allagricultural
productsandcertainmeansofproduction'fromthe
general10%increaseinthetariffsoftheLuxem­
bourgNationalRailways(CFL)whichenteredinto
forceon1January1975;whereasitstatedatthesame
timethattheestimatedsumofLfrs1440000would
beenteredinthenationalbudgetfor1975tocompen­
satetheCFLforthelossofincomeresultingfrom
thismeasure;
Whereasthemeasuredidinfactenterintoforceon
21March1975;
Whereas,sincethisisanimpositionbytheLuxem­
bourgGovernmentofratesandconditionsinvolving,
onitsownadmission,asupporttoagriculture ,the
measureundeniablyfallswithinthesphereofArticle
80oftheEECTreatyandtheapplicationofthese
ratesandconditionsoftransportwasthereforesubject
topriorauthorization bytheCommission ;Whereas,havinginformedtheLuxembourgGovern­
mentofthisstateofaffairs,andafteraninquirywith
thelatterandwiththeCFLintothetariffs,products
androutesconcerned ,theCommission summoned
thesaidGovernment toaconsultativemeetingas
providedforinArticle80(2)oftheEECTreaty,
pointingoutthat,shouldtheresultsofthisconsulta­
tionconfirmthesupportivecharacterofthetariffsin
question,theCommissionwouldbeobligedtotake
anymeasuresnecessarytoendthebreacharisingfrom
theirapplicationwithoutauthorization bythe
Commission ;
Whereastheconsultation ,whichtookplaceon9July
1975,confirmedthattheexemptionfromthe10%
tariffincreaseimposedontheCFLandcompensated
forbytheLuxembourgGovernment ,concerns:
—ChaptersI,IIandIIIofSpecialTariffNo10appli­
cabletocereals,animalfeedingstuffsandnatural
andchemicalfertilizers,
—ChaptersIandIIofSpecialTariffNo11appli­
cabletoThomasslagoncertainroutes,
—Franco-Luxembourg InternationalTariffNo9469
(No7401since1August1975)applicabletothe
carriageofcereals;
WhereasChapterIIofSpecialTariffNo10andChap­
tersIandIIofSpecialTariffNo11areappliedbythe
CFLtomeetcompetitionfromroadtransportand/or
mixedtransportbyroadandtheRiverMosellevia
Mertertandwhereas,inparticular,ChapterIof

NoL147/14 OfficialJournaloftheEuropeanCommunities 5.6.76
HASADOPTEDTHISDECISION :
Article1
Theapplicationofthereducedratesinthefollowing
CFLspecialtariffs,resultingfromtheexemptionof
thetransportoperationsconcernedfromthegeneral
10%tariffincreaseon1January1975,isnotautho­
rized:
—ChaptersI,IIandIIIofSpecialTariffNo10—
Agriculturalproducts,
—ChaptersIandIIofSpecialTariffNo11—Ferti­
lizers,
—InternationalTariffNo7401(formerly9469)—
Carriageofcereals,fodderandoilcakesbetween
FranceandLuxembourg .SpecialTariffNo11appliesexclusivelytotheexport
ofThomasslagfromLuxembourgsteelworks;
Whereas,sincepricesinChaptersIandIIofSpecial
TariffNo11areexemptedfromthe10%increase,
theaidmeasurealsofavoursLuxembourgproduction
ofThomasslag;
Whereastheapplicationofalltheabovetariffsas
supporttariffsimposedbyaMemberStatecannotbe
denied,seeingthatitnecessarilyresultsfromthefact
thattheLuxembourgGovernmentgrantstheCFL
corresponding compensation pursuanttoCouncil
Regulation(EEC)No1107/70of4June1970onthe
grantingofaidsfortransportbyrail,roadandinland
waterway(');
Whereas,becauseofitsexpressaimofaidingLuxem­
bourgagriculture,themeasureislikelytodisturbthe
functioningofthecommonagriculturalmarket;
whereas,moreover,itfavoursLuxembourgsteelworks
producingThomasslagvis-ti^visothersteelworksin
theCommunity ;whereastheLuxembourgGovern­
menthasnotputforwardanygroundofregional
policywhichcouldjustifyit;whereasbyitsapplica­
tiontorailtransportaloneand,moreover,totariffs
appliedascompetitivetariffsbytheCFL,itisofa
naturesuchastoaffectcompetitionbetweenthe
differentmodesoftransport;
Whereas,inspiteofrepeatedactionbytheCommis­
sionandinspiteofreiterateddeclarationsbythe
LuxembourgGovernmentofitsintentiontoabolish
thismeasureassoonaspossible,itcontinuestobe
applied,Article2
ThisDecisionisaddressedtotheGrandDuchyof
Luxembourg .
DoneatBrussels,17May1976.
FortheCommission
CarloSCARASCIA MUGNOZZA
Vice-President
(•)OJNoL130,15.6.1970,p.1.