ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(73)916
Vol.1973/0170

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COMMISSION OFTHE EUROPEAN COMMUNITIES
COM (73)916 final
Brussels ,6June '(975
I
Amended draft
DECSION (ECSC )OFTIECOMMISSION
concerning coal andcoke for "theiron and
steel industry intheCommunity
\
(submitted totheCouncil laytheCommission )
COM(73)916 final

Amended draft (*)
DECISION (ECSC )OPTHECOMMISSION
-concerning coal andcoke fortheiron
and steel industry intheCommunity
SFCTI®T I
Aid^"byMember States
Articl e1 '
TheMember States areauthorized togrant tocoal undertakings under their
jurisdiction which supply coking coal andblast-furnace coke totheCommunity
iron andsteel industry aids tofacilitate production ,marketing inregions
faraway from theproduction areas andintra^Community trade ,andthe
conclusion andimplementation oflong-term contracts forsupply and
collection .Tothis endthefollowing aids may begranted :
(a)aproduction aid,forwhich thegovernments shall each year determine
arate per ooalfield ,while taking particular aocount oftheaverage
costs ofproduction inthat coalfield ,theprice ofcoking ooal in .its
principal sales area andthelong-term supply conditions ;
(b)asales aidapplying todeliveries toareas remote frcn thecoalfield
oreffected bywayofintra –Community trade .Therate ofanysuch aid
maynotexceed 3u.a .permetric tonofcoking coal inthecase of
deliveries toinstallations which canbesupplied direct viamaritime
transport and1.60 u*a.permetric toninallother cases .These rates
shall bereduced to2.60 and1.40 u.a.respectively forthesixth year ,
2»30 and1.20 u,a trespectively fortheseventh year and 2and 1u.a .
respectively fortheeighth year oftheterm oftheDecision .These
levels aredetermined onthebasis oftherates applicable forthe
first year ofapplication ,without prejudice totheprovisions of
Article 10.Noscale adopted byagovernment shall introduce any
element ofdiscrimination into theaids relating tothedeliveries made
bythecoal undertakings .
Article 2
1. I'lhere aMember State makes useofitsoption under Article 1,the
following rules shall apply ?
(*)Asterisks inthemargin indicate amendments toDoc.NoCOM(73 )38Qfinal .

(a)"theaidsshall"bepaidtothecoking-ooalproducerundertakingsin
respectoftheirdisposalsoftheirowncoal;
(b)theaidsmaybepaid:onlywherethecoalisusedforcokingandthe
cokeinquestionisactuallyconsumedinthe"blastfurnaces ,ofthe
Communityironand.steelindustry;
(c)theaidsmaybepaidonlywheredeliveriesofcokingcoaland
blast-furnace cokearemadeunderalong-termcontract#
2,TheproductionaidsreferredtoinArticlel(a)ofthisDecisionmay'
"bepaidonlyaftertheratesthereofhavebeenauthorizedbytheCommission.
Theauthorization shallbegivenbytheCommissionwithdueregardtothe
criteriareferredtoinArticle1(a)#ForthispurposeMemberStates
shallfby30Septemberofeachyear,submittheirapplicationsforthe
followingcalendaryearftogetherwithsupportingdocuments.The
Commissionshallgiveitsrulingwithintwomonthsafterreceiptofthe
application.
3.ThesalesaidreferredtoinArticlel(b)maybegrantedonlyifit
passedonintheformofpricerebatetothepurchaserofcokingcoalor
"blast-furnace coke*Whenacoalundertakingpassestheproductionaidcn
tohisbuyers,thisshallnotgiverisetodiscrimination betweenthe
variouslong-termcontractstobeperformedbythatundertaking..
SECTIONIX
Pri'cingrules
HJK-.DHII
Article3
1*Coalundertakingsareauthorized,wherenecessary,to'grantrebates
ontheirlistprices,fordisposalsofcokingcoalandblast-furnace coke
fortheCommunityironandsteelindustryunderlong-termcontract,even
wherethereisnoactualcompetition fromcoalorcokefromnon-member
countriesatthepointofconsumption.

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2„Hierebatesallowedtinder(l)aboveshallnotcausethedelivered
pricesofCommunitycoalandcoketoworkoutlowerthanthosewhichwould
bechargedforcokingcoalfromnon-membercountriesandcokemadefrom
non-membercountiycostingcoal.
3.Allotherprovisionsconcerningthealignmentprovidedforby
Article60,lastsub-paragraph .2(b)oftheTreaty,anddecisionsin
implementation thereof,shallapplytothetransactionsreferredtoin(l)
above,inparticularthosewhichallowtheCommission,5.ntheeventof
abuse,toabrogateorrestricttherightoftheundertakings concernedto
grantsuchrebates#
Article4
ShouldanundertakinginfringetheruleslaiddowninArticle3,the
provisionsofArticle64oftheTreatyshallapply.
Article5
1.Thedeliveredprxcesofcokingcoalfromnon-membercountriesreferred
toinArticle3(2)shallbecalculatedfromthepricescifCommunityports
forcomparabletransactions.TheCommission mayfixguidecifprices.
2.Thedeliveredpricesofblast–furnacecokefromnon-membercountries
referredtoinArticle3(2)shallbecalculatedfromthecifpricesfor
cokingooalreferredtoin(l)aboveinsuchawayastocoverinfullthe
netcokingcostsofthesupplyingcokingplants.Standardvaluestherefor
maybelaiddownbytheCommission.
3.TheCommission maylaydownoirteriafortheassessmentofdifferences
ingradeincokingcoalandcoke.

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,SECH(ITIII
Communityfinancingarrangements
• /Article6■
Communityfinancingarrangements shallbesetupfort
–salesaidspaidinpursuanceofSectionIofthisDecisionin
(*)respectofintra-Community trade;
(*)–thecontributions definedinArticle7(1)"belowfrommembercountries
(*)notengagedinintra-Community trade,insofarastheirproduction
(*)ofcokingcoalcoversatleast75$oftherequirementsoftheir"blast
(*)furnaces.
Aspecialfundadministered "bytheCommissionshallbeinstitutedfor
thispurpose.
(*)1.TheCommunityfinancingarrangementsshallcoveraquantityof
(*)cokingcoalamountingtonomorethan15millionmetrictonsperannum,
(*)andtheamountofthecontributions fromtheironandsteelindustries
(*)ofthecountriesreferredtoinArticle6above,
2.Thespecialfundshallbefinancedasfollows:
(*)(a)ThecontributionoftheEuropeanCoalandSteelCommunityshallbeJ
(*)-forthefirstyear,0.266u.a.permetrictonsofcoal,i.e,
notmorethan4000000u,aj
(*).-forthesecondandthirdyears,0.333u.a.permetrictonof
coal,i.e,notmorethan5000000u.a.perannum;
(*)--forsubsequentyears,0.400u.a.'permetriotonofcoal,i.e,
notmorethan6000000u.a.perannum.
(*)(b)TheMemberStatesshallprovidethefollowingoverallcontributions,
....'onthescaleshowninparagraph3below:
(*)-forthefirstyear,0.627u.a.permetrictonofcoal,i.e^not
morethan9*4millionu.a;
(*) .–forthesecond,thirdandforuthyears,0.560u.a.permetric
tonofcoal,i.e,notmorethan8.4millionu.a.perannum;
(*)-forthefifithyear,0.437u.a.permetrictonofcoal,i.e,
notmorethan7*3«millionu.a;
(*)-forsubsequentyears,0.207u.a.permetrictonofcoal,i.e,
notmorethan3.1millionu.a.perannum;

-5-
(o)Theoverallcontributionoftheironandsteelindustryshall"be:
–forthefirstfiveyears,1.333u.a.permetrictonofcoal,i.et
notmorethan20millionu.a.perannum;
–forthesixthyear,1»167u.a»permetrictonofcoal,i.efnot
morethan17«5millionu.a|
–fortheseventhyearT1u.a.permetrictonofcoal,i.e,notmore
than15millionu.a;
–fortheeighthyear,O.867u.a.permetrictonofcoal,i.efnot
morethan13millionuaa.
Theoverallamountofthecontribution shall "beapportioned amongthe
ironandsteelundertakings onthe"basisoftheirconsumptionof
blast–furnacecoke.
Thecontribution toprovidedbytheMemberStatesshallbeonthe
followingscale?
Germany 31%
Belgium 13%
France 28%
Italy 12%
Luxembourg 10%
Netherlands 6%
Article8
1.ThesupplierStatesmayapplyforreimbursement fromtnespecial
fundofaidsactuallypaid*
2»TheCommissionshallcheoktheapplications anddeterminethe
aaountstobereimbursedfromthespecialfundtotheMemberStates
concerned.Ifthetonnagesconcernedexceedthelimitfixedin
Article7(l)jthereimbursements shallbecorrespondingly reduced.As
regardsintra-Communiiysales,thepercentageofthereductionisthe
sameforeachofthesupplierStates,
3»TheCommissionshallfixthecontributions tobepaidintothe
specialfundonthebasisoftheseamounts.
4.TospeedupCommunityfinancing,thesuppliercountriesshall
notifytheCommissionofthedeliveriesofcokingcoal(qualifyingfor
aidmadeduringtheprecedingquarterunderArticle6.Onthebasis
ofthesenotifications ,theCommissionshallrequesttheMemberStates
topaythecorresponding amounts.TheCommissionshallforthwith

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(*)apportiontheseamounts "betweenthesuppliercountries,atthesame
timeasthecorresponding contribution oftheEuropeanCoalandSteel
Community.TheCommissionshallcallforcontributions fromthe
steelmalcingundertakings andimmediatelyapportionthepaymentsamong
(*)theproducerandsuppliercountries.
5.Thefinalaccountsshall "besettledatthebeginningofeach
oalendaryearinrespectoftheprecedingyear.
SECTIONIV
–pci»
Generalandfinalprovisions
1.TheCommissionshalltakeintoaccounttheaidsprovidedforinthis
DecisioninassessingwhethertheaidsreferredtoinArticles6to9of
DecisionNo3/71/ECSCof22December1970areliabletointerferewith
theproperfunctioningoftheCommonMarket,
2.TheCommissionshallalsoensurethattheaidsprovidedforinthis
Decisiondonothavetheeffectofdistortingconditionsofcompetition
betweencoal,cokeandironorsteelundertakings .
Article10
1«Inanemergency,andotherwiseattheendofthefirstyearof
applicationofthisDecisionandtheneverytwoyears,theCommission
may,bydecisionstakenafterconsultation withtheConsultative
(*)CommitteeandtheCouncil,amend;
–therateofthesalesaids,
–theceilingtointra*-Communitytrade,
–therulesgoverningthefinancingofthespecialfund,
–thescalereferredtoinArticle7»para.3* 1
Theseamendmentsshalltakeaccountofthelong-termtrendofsupply
conditionsandthesupplypatternwithintheenlargedCommunity.

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2.Ifattherequest ofaMember State oronitsowninitiative the
Commission finds that :
(a)theimplementation ofthis Decision isliable togive rise to
serious disturbances inthecommon market forcoal andsteel ,
ortodifficulties which may result inadeterioration inthe
regional economy ,orthat
("b)appreciable changes aretaking place intheconditions ,volume or
pattern ofiricraz-Conmunity trade ,thus altering theeconomic
conditions prompting theadoption ofthis Decision ,
itmaysuspend application ofthis Decision .Itshall refer the
natter tothe Council forthwith .
3.Ifattherequest ofaMember State oracting onitsowninitiative ,
(*) theCommission finds that performance ofthelon^-teim contracts is
jeopardizing theattainment oftheobjectives ofthis Decision ,itmay,
inrespect oftheundertakings inquestion ,limit thebenefits deriving
from theapplication ofArticle 1.
4.Inanemergency ,theCommission shall ,ontherequest ofaMember
State ,leydown without delcy thenecessary safeguarding measures ,
notify theother Member States accordingly andrefer thematter tothe
Council forthwith .
Article 11
TheCommission shall periodically report totheCouncil onthe
application ofthis Decision andondevelopments inthesupply
situation ,inparticular inconnection with intrar-Community trade .
Article 12
After consulting theCouncil andtheConsultative Committee ,the
Commission shall take allmeasures necessary fortheapplication of
this Decision .

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Article13
ThisDecisionshallenterintoforceon fora
periodofeightyears.TheapplicationsprovidedforinArticle2(2)
(*)inrespectof1973shall"besubmitted "by30June1973*Forthe
(*)periodfrom to30December .1973ftheprovisions
concerningthepaymentofaids(Article2(l)(c))fpossiblerebates
intheabsenceofactualcompetition(Article3(l))fandCommunity
fianancing(Article7)shallapplynotwithstanding theabsenceofa
long-termcontract.
DoneatBrussels. fortheCormission
ThePresident

Annex II
Plan ofCommmity Financing Arrangements
1*SALES AIDï Trade :15million metric tons Average rates 1.80 u.a./t
Cost : 27million u.a»
2,FDETDj Expenditure :27.00 forGermany Resources :Iron .
3.10 forUK andsteel industry 18.20
30.10 million u.a .ECSC 5.50
Member States 6„/l0
3.SITUATION 1BYCOUITTRYs (in10u.a.)30.10 million u.;
Reimburse Contributions Balances Olddraft 001^73 )i
ment sm «•<Min
fanal
Cotmtry Iron and States Balances Contri – States
steel mitions
mductry
(a) 00 c) (afW-c )(a+b+c )
Germany +27.00 -5.3 -2.00 (31)+19.7 +24.22 D
Belgium -2.4 -0,83 (13)-3.23 -3.63 1.14 Β
Prance -4.0 -1.80 (28)-5,80 -6o82 2.50 Ρ
Uh.itedICingdom +3.10 -3.1 –2«0o UK
Italy -1.6 -0,75 (12)-2.35 -2,89 1 I
Luxembourg -1.1 -0.62 (10)-1.72 -2.05 0.85 L
Netherlands -0o7 -0,40 .(o)-1.10 -I.27 0,57 1TL
30.10 -18.20 -6,40 (100) 6.O6
(a)vdthout contributions
for internal
deliveries