NoL335/40 OfficialJournaloftheEuropeanCommunities 14.12.74
COMMISSION DECISION
of16October1974
approvingaidstobegrantedbytheRepublicofpranceforthebenefitofundertakings
inthecoalindustryinrespectofthecalendaryear1973
(OnlytheFrenchtextisauthentic)
(74/615/ECSC)
WhereastheFrenchGovernmentalsoproposesto
granttoCharbonnages deFranceinrespectof1973
aidamountingtoFF1043millionforthepurpose
ofenablingtheeconomicrestructuringofthecoal­
fieldstobecarriedoutatasuitablerate;whereas
thatamountistobedistributedamongtheindividual
coalfieldsasfollows:Nord/Pas-de-Calais :FF
488000000,Lorraine:FF270-4millionandCentre­
Midi:FF284-6million.
WhereastheFrenchGovernmentalsoproposesto
granttoCharbonnages deFranceadditionalaidin
respectof1973amountingtoFF125milliontocover
outstandinglossesincurredbythecentraladminis­
trationand/ortopreventsuchlossesincurredbythe
centraladministration and/ortopreventsuchlosses
increasinginthefutureasaresultoffurtherloans
takenoutbytheadministration ;whereastheadmin­
istrationhasalreadybeenobligedtotakeoutloans,
evenafterthegrantofaid,inordertomeetits
currentobligations ;THECOMMISSION OFTHEEUROPEAN
COMMUNITIES ,
HavingregardtotheTreatyestablishingthe
EuropeanCoalandSteelCommunity,andin
particularArticles2,3,4and5thereof;
HavingregardtoCommissionDecisionNo3/71/
ECSC(*)of22December1970onCommunityrules
forinterventionsbyMemberStatesforthebenefitof
thecoalindustry;
HavingregardtoDecisionNo73/287/ECSC(2)of
25July1973oncokingcoalandcoke,andinpar­
ticularArticle9(1)thereof;
HavingconsultedtheCouncil;
WhereastheFrenchGovernment hasinformedthe
CommissionpursuanttoArticle2ofDecisionNo
3/71/ECSCofthefinancialmeasureswhichit
proposestoimplement,directlyorindirectly,forthe
benefitofthecoalindustryinrespectof1973;
whereasthefollowingmeasuresrequireapproval
pursuanttotheaforementioned Decision;
WhereastheFrenchGovernmentproposestogrant
toCharbonnages deFranceinrespectoftheyear1973
aidamountingtoFF155milliontocoverexceptional
costsofreconversion ;whereasthetotalamountisto
bedistributedamongtheindividualcoalfieldsas
follows:Nord/Pas-de-Calais ;FF93million,Lorraine:
FF17million,Centre-Midi :FF45million;whereas
theaidrepresentsareimbursement ofthecostof
socialmeasuresimplemented byCharbonnages de
Franceforthebenefitofredundantorprematurely
retiredminers;Whereastheaforementioned aidsareinaccordance
withthecriterialaiddowninArticles6and9of
DecisionNo3/71/ECSCfortheadmissibilityofsuch
stateaid;
Whereastheaidtocoverexceptionalcostsof
conversionrepresentsareimbursement ofnon-oper­
atingexpenditurebornebyCharbonnages deFrance
onbehalfoftheFrenchGovernmenttoenablesocial
measuresforthebenefitofredundantorprematurely
retiredminerstobeimplementedinamorerational
way;whereasthefollowingexpenditureisproposed
for1973:inrespectofminersmaderedundant
becauseofpitclosures:FF54million;inlcspectof
prematurelyretiredminers:FF69million;inrespect
ofcompensation toretiredminersundertheC.A.N,
scheme:FF31million;and'inrespectofthereim­
bursementofheatingcostsofprematurelyretired
miners:FF1million;(2)OJNoL3,5.1.1971,pp.7etseq.
(2)OJNoL259,15.9.1973,p.41.

14.12.74 OfficialJournaloftheEuropeanCommunities NoL335/41
operationandlossessustainedbythecentraladmin­
istrationofCharbonnages deFrancedoesnotexceed
theestimatedactualoperatinglossesandistherefore
inaccordancewiththeprovisionsofArticle9(2)of
DecisionNo3/71/ECSC;Whereasthesesocialmeasuresrelatetopersonsno
longerengagedinmining;whereastheexpenditure
Charbonnages deFranceinthisconnectionisnot
regardedasoperatingexpenditureandcantherefore
notbeincludedinthecostofproduction;whereas
theaidisdesignedtocoverexpenditurenotdirectly
connectedwiththeproductionandmarketingofcoal;
whereastheaidisthereforeinaccordancewiththe
provisionsofArticle6(1)(1)ofDecisionNo3/71/
ECSC;WhereastheaidproposedbytheFrenchGovernment
for1973isnotsuchastoimpairtheproper
functioningofthecommonmarket,althoughthe
totalamountofaidtobecalculatedinaccordance
withArticles6to9ofDecisionNo3/71/ECSCyields
afigureofFF47-42(8*54u.a.)permetricton
producedandisthusrelativelyhighincomparison
withtheaidsfortheGermanandBritishcoal
industries;Whereastheaid,amountingtoFF1168million,
proposedbytheFrenchGovernmentfor1973to
coverlosses(ofwhichFF1043milliontocoverthe
coalfields'operatinglossesandFF125millionto
coverthelossessubstainedbythecentraladminis­
trationofCharbonnages deFrance)canberegarded
asbeinginaccordancewiththeprovisionsofArticle
9ofDecisionNo3/71/ECSC;whereasin1973the
revenuefromproductionwillonaverageprobably
coveronlyapproximately 60to65%ofthetotal
productioncostsincurredbytheFrenchpits;
WhereasFrance'scoalproductionfellbyfourmillion
metrictonsin1973,i.e.by14%comparedto1973;
whereasin1973pitclosuresandrationalization led
to.areductionof8000to9000(i.e.approximately
8-5%inthenumberofpersonsemployedinthe
Frenchcoalindustry;whereas,inadditiontototal
figuresinrespectofdevelopments intheemployment
situationinthecoalindustry,theFrenchGovern­
menthasalsogiventheCommissiondetailsofthe
pitclosuresproposedfor1973;whereasaccordingto
thatinformationsixpitsweretobeclosedand
3578minersmaderedundantintheNord/Pas-de­
CalaisandCentre-Midicoalfieldsin1973;whereas
ofthoseminersmaderedundant2716personsare
tobere-employedinthecoalindustryand236in
otherindustries;whereastheinformationalsoshowed
thatthenumberofpersonsemployedinthecoal
industry,whichfellbyapproximately 8000to9000
in1973,wasreducednotonlybecauseofpitclosures
butalsobecauseanincreaseinoutputperman-shift
intheexistingpitsmeantthatnotsomanyworkers
wereneeded,i.e.thatacertainnumberbecame
redundant;Whereastheseconclusionsarebasedonthefollowing
findings:
—theamountoftheaidisconsistentwiththe
tonnageforecastsfor1973havingregardtothe
Community'soverallsupplypositioninrespect
ofcoalandcoke;
—therehasbeennonoticeabledeclineintradein
coalbetweenFranceandtheotherCommunity
countries;
—thenumberofpricealignmentagreementhas
fallen;
—industrialconsumersofcokingcoalandboiler
coalreceivenoindirectaidasaresultofartifi­
ciallylowpricesforFrenchcoal;
—theclosureofunprofitablepitswillleadto
rationalization andtheconcentrationofproduc­
tiononpitswhereproductivityishighest;
Whereasitmaythereforebeconcludedthatthe
competitivepositionoftheFrenchcoalindustrydid
notchangein1973,eitherasregardstherelative
positionsoftheindividualFrenchcoalfieldsoras
regardsthepositionoftheentireFrenchcoalindustry
vis-a-vistheotherCommunitycoalfields;
Whereasthisappliesevenwhenaccountistakenof
thoseaidspaidtothecoalminesunderDecision
No73/287/ECSC;
Whereas,pursuanttoArticle11(1)ofDecisionNo
3/71/ECSC,theCommissionmustsatisfyitselfthat
theapprovedaidsareemployedforthepurposesset
outinArticles6to9ofthatDecision;whereasin
ordertodosotheCommission mustbenotifiedin
particularoftheamountoftheaidandofthe
mannerinwhichitisapportioned.Whereasitisagreeablethat,inviewofthesizeofthe
reductioninthetotallabourforce,agreater
reductioncouldgiverisetodifficultiesofthetype
describedinArticle9(1)(1)ofDecisionNo3/71/
ECSC;whereastheaidproposedfor1973tocover
operatinglossesisthereforeinaccordancewith
Article9(1)(1)ofDecisionNo3/71/ECSC;
Whereasitmustbepointedout,furthermore ,that
theamountoftheaidtocoverlossesonmine

NoL335/42 OfficialJournaloftheEuropeanCommunities 14.12.74
HASADOPTED THISDECISION :
Article1
TheGovernmentoftheRepublicofFranceishereby
authorizedtogranttothecoalindustryinrespect
ofthecalendaryear1973,thefollowingaids:
(a)tocoveroperatinglosses
Nord/Pas-de-Calais coalfield FF488-0million
Lorrainecoalfield FF270-4million
Centre-Midicoalfield FF284-6million
(b)tocoverexceptional
costsofreconversion
Nord/Pas-de-Calais coalfield FF93million
Lorrainecoalfield FF17million
Centre-Midicoalfield FF45million(c)tocoverlossessustainedbythecentraladminis­
trationofCharbonnages deFrance:FF
125million.
Article2
TheRepublicofFranceshallnotifytheCommission
by30November1974ofdetailsoftheaidsgranted
pursuanttothis-Decision,inparticularasregardsthe
amountspaidandthemannerinwhichsuchamounts
areapportionedandscopeoftherationalization
measures .
Article3
ThisDecisionisaddressedtotheRepublicofFrance.
DoneatBrussels,16October1974.
FortheCommission
ThePresident
Francois-Xavier ORTOLI