ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(77)311
Vol.1977/0104

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Conformément aurèglement (CEE, Euratom) n°354/83 duConseil du1erfévrier 1983
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Community andtheEuropean Atomic Energy Community (OJL43,15.2.1983, p.1),as
amended byRegulation (EC, Euratom) No1700/2003 of22September 2003 (OJL243,
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COMMISSION OFTHEEUROPEAN COMMUNITIES
j
COM(77)311 final.
Brussels .30June1977»
>DRAFTCOMMISSION DECISION -(ECSC)
amendingDecision 3544/73/ECSCimplementing Decision
73/287/ECSCconcerning cokingcoalandcoke
°0M(77)311final

Justification ofadecision amending decision No.3544/73/ECSC
implementing decision No.73/287/ECSConcokingcoalandcoke i
; !•fortheironandsteelindustry oftheCommunity (1) j
1.Underdecision No.73/287/ECSC,aidsforcokingcoalandblast-furnace coke
maybepaidonlywheredeliveries aremadeunderlong-term contract (article
2,1(c);equally,coalundertakings areauthorized tograntrebates pn
theirlist-prices onlyinrespectofsuchdeliveries (article 3,1).
2.Article 3ofdecision No.3544/73/ECSC,implementing theabovedecision (2)
definestherequirements thatamutualagreement needstomeetinordertobe
regarded asalong-term contract andhencequalifyfortheaidsandthe
alignment rebatesmentioned above.
Inparticular ,anagreement relatingtoafixedtonnage mayallowperformance
variations aboveorbelowthestatedtonnage,asprovided forinthedecision
(article 3,2a).Theseupperandlowerlimits (flexibility )haveenabledth=
systemtoabsorbtheimpactofeconomic changesbetween 1974and1976.
3.Fortheyear1977,theCommission hasintroduced aschemetobringthesupply
ofironandsteelproducts moreintolinewithdemand,thisschemerelies
interaliauponcommitments byCommunity steelundertakings toadheretothe
delivery limitssetbytheCommission (3).
Foragivenundertaking ,thefactofmeeting suchacommitment islikelyto
bringaboutreducedproduction ofsteelandpigironandconsequently lower
consumption ofcokingcoalandblast-furnace coke.Thisreduction could
largelyexceedthemaximumpermitted flexibility forlong-term contracts (10
(seeparagraph 2above).
Itfollowsthatsuchanundertaking couldfinditselfatadisadvantage in
comparison withitscompetitors ,eitherasaresultofhavingrespected the
flexibility mentioned above-henceincurring significent stockholding costs-
or,asaresultofnothavingmetcommitments underitssupplycontract
therebylosingthebenefitofaidsandalignment .
(1)0JNo.L259of15.9.73
(2)0JNoL361of29.12.73
(3)seedecision 962/77/ECSCof4May,1977fixingminimumpricesforcertain
concrete reinforcement bars.0JNo.L114of5.5.77,secondconsideration .

-2-
4.Giventhatthissituation appliestoagoo.dnumberofundertakings ,itis
theCommission 'sviewthatfor1977,greaterflexibility isrequired inthe
performance criteriaapplicable tolong-term contracts -withouthowever
•ι
changing thedefinitions oftheimplementing decision and,naturally without
bringingintoquestion theindividual obligations arisingunderprivate law
fromlong-term agreements concluded betweensuppliers andpurchasers of
Community coal-
Therighttobenefitfromaidsandalignment rebateswillbenotbeimpaired
foranycontract wherethe1977performance doesnotfallshortofthebass
tonnagebyapercentage greaterthanthatbywhichthebuyer'spigiron
outputvariesagainstthereference periodsetforthedelivery limitsfor
ironandsteelproducts .
5.Suchameasureposesproblems forthecoalundertakings ;theyneedtomaintain
sufficient production capacity tocoveralltheircontracts anditistherefore
necessary toavoidpronounced variations inperformance betweenthesecontracts
Forthispurposeeverypurchaser whohasnegociated supplycontracts with
several Community undertakings ,mustensureforeachindividual contractatlea
theminimumlevelofperformance definedabove,failingwhichhisoverall
liftings willceasetoqualifyforaidsandalignment rebates.
6.Accordingly ,theCommission proposes totakeadecision (ECSC);thedraft
instrument isattached .
Thedraftissubmitted totheCouncil andtotheConsultative Committee in
accordance witharticle 12ofdecision No.73/287/ECSC.

DraftCommissionDecisionamendingDecision 3544/73/ECSC
implamenting Decision 73/287/ECSCconcerning cokingcoal
andcoke
Article 1
ThereisherebyaddedtoArticle3(2)ofDecision .3544/73/EESC.thefollowing f
"c)Fortheyear1977andinrespectofthesuppliestoasteelundertaking which
hasundertaken to*adheretothedelivery limitsforironandsteelproducts set
"bytheCommission ,theperformance ofanagreement relatingtoafixedtonnage
mayvery "belowthistonnage "byapercentage notexceeding thereduction inthe
pig/'"production oftheundertaking during1977ascomparedwiththereference
periodestablished inrespectofthedelivery limitssetforitsironandsteel
products .
Ifthesuppliestoanironandsteelundertaking arecovered bytwoormore
long–termfixed-tonnage contracts ,eachandeveryoneshalltieperformed at
leasttotheextentssetoutabove"•
Article 2
ThisDecisionshalltakeeffectretrospectively from1January 1977andshall
ceasetohaveeffecton ■31December 1977.
This'Decisionshallbebindinginitsentirety ahddirectly applicable inall
MemberStates.
DoneatBrussels .