ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(75)285
Vol.1975/0102

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COMMISSION OBTHEEUROPEAN COMMUNITIES
COÏT(75)285final
Brussels ,16June1975
FIRSTCOMMUNICATION FROMTHECOMMISSION TOTOECOUNCIL
onprogress inliberalizing publiccontracts andcontracts awardedby
undertakings responsible fortheoperation ofservices of
general economicinterest inrespectofsupplies
Upd?tingofDocument SEC(72)2601finalof24July1972
(submitted totheCouncilbytheCommission )
COMC75)235final

?- III/197/75-E
INTRODUOTION'
On4August1972theCommission forwarded ,totheCouncilitsfirstcommunication
(SEC(72)2601final)onprogressinliberalizing publiccontracts and
contracts awardedbyundertakings responsible fortheoperation ofservices
ofgeneraleconomicinterest inrespectof-supplies. ,
Theconclusion reachedinthisdocument wasthatalthough thegradual
abolition ofcustomsdutiesandquantitative restrictions hadledto
vigorous tradeintheCommunity inall-products boughtbyprivatefirmsor
privateindividuals ,the.samewasnottrueofcapitalgoodsandarticles
ofadvanced technology generally boughtbypublicadministrations and.,
undertakings responsible foroperating economic services ofgeneralinterest®
Consequently ,theonlywaytogradually breakdownthepersistent
conpartmentali zationofthesemarketssovitallyimportant forEurope's
technological futureseemedtolieinstrongmeasures toachieve,for.
instance ,theimplementation ofprocedures .ensuringthatallthe-Community's
competent suppliers areconsulted ,,theremovaloftechnical ,administrative
andcustomsbarriers ,jointdecisions bythemajorpurchasers orrelevant
publicauthorities regarding thetypeofequipment tobedeveloped inthe
futureand,whereappropriate ,Community supportforthejointdevelopment
of,semenewtypesofequipment , ■.,
.>•- x-x
AtthemeetingofthePermanent Representatives Committee heldon17July
1974?theItaliandelegation expressed itswishforanexchange ofviews
tobeheldonthisCommunication forwarded bytheCommission totheCouncil

before the accession ofthenewMember States ,With aview tosuch a
discussion ,theCommittee asked theCommission toupdate this Communication
assoon aspossible , -
Although thePermanent Representatives 'probably thought that anupdating
ofa1972 document in1974 should take into account theintervening
enlargement oftheCommunity ,theCommission didnotconsider ,save
exception ,that itcould reasonably include thethree newmember countries
inastudy ontheeffects oftheliberalization ofpublic contracts .
Thestatistical data currently available onindustrial output (and
.consequently theratio trade/production )very rarely gobeyond 1972 and
therefore almost' always relate toaperiod prior totheenlargement of
theCommunity ,
Thetransitional measures provided forintheAccession Treaty ,particularly
Articles 32(customs duties )and36(charges with equivalent effect )
thereof ,means that atpresent time theconditions forfree movement of
;goods between theSixandtheir newpartners areonly partly established ,
andthat itisnotfeasible todraw upstatistical time series .Similarly ,
under Article 42oftheActofAccession measures having equivalent
effect toquantitative restrictions existing onthedate oftheaccession
totheCommunity asoriginally constituted ofthenewMember States are
tobeprohibited only from 1January 1975 •What this means inpractice
isthat itisonly from this very recent date that therule3 contained
inArticles 30to36oftheEECTreaty ,assetoutinmore detail bythe
Commission inDirective No70/32/EECwhich wasthefirst legal instrument
ofimportance asregards theopening ofpublic contracts intheCommunity ,
aretoapply tothethree newMember States ,

-AV. 111/197/75-E
Itwouldtherefore bepremature atthepresenttimetomeasurethe
consequences inthenewmembercountries' oftheliberalization ofamarket
whichisstillfettered bysomanylimitations .Thestatistics -ofthese
countries fortheperiodsinquestion aretotallyinadequate asabasis
forany,newthoughts onthesubjectorevensimplyforqualifying ,
endorsing orrejecting thegeneralconclusions reachedinthereport,i»e,
thattheachievement ofthecommonmarkethastriggered averitable
surgeintra-Community tradeingoodspurchased byprivatefirmsor
individuals ,whereaspublicandsemi-publicpurchases seemtohavebeen
very,littleaffected bytheexistence oftheEuropean Economic Community ,
Eveninthelimitedframework ofthesixoriginal members ,theworkof
theCommission 'sdepartments hasbeencomplicated ,asin1972,bythe
currentlackofcomparable industrial statistics ;thecollected dataare
therefore notalwaysasspecifically accurate astheCommission wouldlike
themtobe.Despitetheirshortcomings theynevertheless indicate the
maintrends.However,thefigurestakenoaccountofthede-cospartment -
alization ofmarketsresulting fromthe.factthatgeneralcontractors •
maysub-contract partsoftheirorderstofirmslocatedinothercountries
orthattransfers ofcapitalorknow-how toothercountries mayreplace
tradeingoods.Promtheeconomic angle,thesetwoactivities donot
producethesameeconomies ofscaleasagenuineliberalization ofthe
marketendmaytherefore onlyberegarded assimilarwithsubstantial •
reservations .Howeverthismaybe,theCommission d"oesnotyetpossess '
thenecessary dataforaquantitative analysis oftheseactivities ,1
Incompliance withaDirective adopted .bytheCouncilin1972which *
provided fortheestablishment ofcoherentstatistics' onthestructure and
productive activity ofindustry intheComnunity ,asurveyrelatingto-

-5- ττ/" /"■·
•-. I i 
1973 isatpresent under way.Theresults ofthis -survey should "be
published towards theendof .1975 *'Similar surveys will then "beconducted
every year * ... ...
Itisnotuntil these published data become available that theCommission
will beable toconsider presenting anewreport totheCouncil onthe
progress made inliberalizing public contracts andcontracts awarded by
undertakings responsible fortheoperation ofservices ofgeneral economic '
interest .This report -will then cover allthemember countries ofthe
enlarged Community ,
x
X X
Inthefollowing pages ,theCommission submits totheCouncil theupdated
version requested bythePermanent Representatives Committee ;updating
hasmainly affected theparts dealing with thequantitative aspects of
trade ,...Parts relating tothe .legal aspects oftheliberalization ofpublic
contracts and the conclusions tobedrawn from areview ofthe sectors
studied remain virtually unchanged# ■
Even inthefactual part ofthis updated version ,theCommission felt that
itwasoflittle usetogomore deeply into theproblems affecting
conventional supplies , ,Suffice ittosaythat between 19^9 and1971
portion ofgross internal product accounted for ,bycontracts concluded by
thepublic authorities andbyundertakings responsible foroperating
services of .general economic interest ,hardly varied intheoriginal Community
taken as .awhole (slight increase inGermany ,Italy 'aridtheNetherlands ,
offset byadecrease in,Belgium andFrance ),Incontrast ,intra^Community
trade continued toexpand strongly :atcurrent prices ,thevalue oftrade
rose from$36000mto^52000mbetween 19^9 and1972 ,anincrease of
42$inth?ee years .

111/197/75-E
This being said ,theCommission thinks best tocomply with thewishes
expressed bythePermanent Representatives Committee byfocusing the
updating ofitscommunication totheCouncil oncapital goods andarticles
ofadvanced technology bought bygovernments andbyundertakings
responsible foraservice ofgeneral interest .Aswill beseen inthe
following pages ,thelatter undertakings took nosignificant part inthe
expansion oftrade .Toillustrate thesituation ,supplementary notes
ofabasically statistical nature have been prepared foreach ofthe
sectors studied in1972 ,except fortechnical infrastructure equipment
forairports .Forthis sector ,theCommission wasunable toobtain more
up-to-date figures since they had originally been obtained through -
personal contacts with therelevant authorities in1972®
Thus ,thesupplementary notes presented inthefollowing pages concern :
-Note No -1
-Note No2
-Note No3
-Note No4
-Note No5
-Note No6'electrò^nedical andx–rayinstruments
data processing
civii aviation
equipnent forconventional andnuclear power stations
railway equipment
télécommunications equipment
HTPORTMT RMARK ;Inthis working paper ,thevalue oftheunit of
account equals thevalue oftheUSdollar before its
-""devaluation in1972 »Itis "thus notidentical to
theHJRunit adopted recently bytheStatistical
Office oftheEuropean Communities .

STJPPLETiENTARY NOTENO1to
Doc.SEC(72)2601finalof24July1972
Electromedical andx>-rayinstruments

-•8- 111/197/75-E
Themarketforelectromedical instruments intheCommunity ofSixwas
1.2estimated at281millionu»a.'in1974/comparedwith198millionu.a.
in1970«Thisamountbreaksdownasfollows ;
–fOfoforx-rayapparatus
-.14fofordiagnostic instruments
–11^formonitoring andsurveillance ,apparatus
–5/5fortherapeutic appliances
This "breQicdoxd "broadlycorresponds ,tosubheadings 90«17~Hto19and
90,20-11oftheCommunity'sanalytical nomenclature forexternaltrade
(NTIIEXE).'
Takingtheseproducts asa\irhole,thevolumeofintra-Community trade
(imports)wasasfollowsfortheperiod1968–1972 (thelastyearforwhich
foreigntradefigurescouldbehad):
See"Electronics "December 1973#..Figuresexpressed in,thisreviewin..
dollarsatcurrentpriceshavebeenconverted intounitsofaccount '1
on,thebasisofthe.do3,1ar/European.,currency .conversion rates..applied
by-thereviewitself,'
2315"to320millionu.a,fortheenlarged Community .
/

-9
•HV»IIJ/i°7/75-'E?
U,i •
4"Jiy s;')• '«f
Intra-Cammunity trade(imports)inelectromedical andx-rayinstruments
P--T ! ;= '
(NIM3XEsubheadings 90.17-11to19and'90.20-11)
(in'000u.a.)
Destination
iiFrance
iBelgs/|Nethér-jGermanyjItalyjSix•
Luxemb.ilaads } .j !
-electro­
cardiographsι
i1968
1970
!1972288
78
493: i
266I145
44i230
21i99 ii!. 1
i i
122S751896
890I403:1.646
823i"554i1.990
i «•"
• 7
;-ultraviolet &l-
;infrared j1968
Iapparatus i1970
| {1972120 .
70
12: 1 ,– ; i t
219I485!135I77'-'1.036i
I877i•854j ;1.036 1
\949'i640!-i1.601 i
;«-instrumenta for
diathermy }1968
I1970
|1972.285
21
19! j
741151!151
12 !50!231-i 40i322
■-·■ ι ■--– ;. –y
1|
11!672;
-j318!
23i404!
-otherelectro-j j
medical \1968 1
appliances \1970 I
1972|918
I943
[1.340i
; . (
1.033 !927
364 2.868 i
453 !1.991!
568
4.690
7.655j 1
984!4.430
249!9.113
832:12.271
j ; , ; , j r-x~rayapparatus ; I I i jil !
iformedicaluse\1968i6.105 i1.608 !2.409 i'2.081|1.732!13.935 j
I i1970 13.082 I3.350 j2.202j12.191 i2.901 I23.724 i
(. ■ !1972 14.238I4.774 1'3.290 !15.047 i3.520:30.869 i
1 i ; 1 ; ; i
{–allelectro-! \ j |
Imedicalandx~j1968|7.716 j3.200 J.4.H7
rayinstruments 'i;197°!4.194 I3*770 j6.227 :
; j1972!6.102 j5.248 j.6.369! ; (
i3.057 !2,979:21.069
I10.856 I3.553136.606
!24.487 !4.929i47*135
rateofvariation !\ \ ■.{.,j
1972/68(carrent j'j–11$|+64$j+55$prices) ""jj•'j"\| jj|+701$!'+65$l+124$;
! •. t
■-■I i–j

--10- Ill/197/75-E
Intra-Conmunity tradethusincreased invalueatcurrentpricesby124$
infouryears.Duringthesaneperiod,theCommunity'simportsfromnon-
membercountries increased by103$;andcurrently represent 34$of.all
importsintotheMemberStatescomparedwith40$in1972. ■
Thussubstantial increaseinintrar-Community tradeisdueinparticular to
averystrongincrease inGentianimportsofx-rayapparatus produced in
France(5»4millionu.a.in1972),"theNetherlands (4.2millionu.a.)
andItaly(4.3millionu.a.),aJidofFrenchequipment coveredbythe
statistical heading "otherelectromedical appliances "(7*7millionu.a.
in1972).
Intra-Coraimnity tradetherefore represents aconsiderable andincreasing
shareofCcomunity consumption :16,8$in1972,thelastdateforwhichwe
havefigures onforeigntrade,compared with15/3in197®*Thesefigures
indicatethattheliberalization ofpurchases byinstitutions which
aremainlypublicorsemi–public(hospitals ,dispensaries ,etc.)encounters
noparticular obstacles oncethereisasufficiently highnumberof
purchasers actingintheirbestrespective interests withoutinterference
bytheStatsandinafieldwherethevalueofindividual ordersis
generally fairlylow.
Themarketforsuchequipment ,whichexpandedconsiderably between1964
and1968(ratesofgrowth-inU.a.atcurrentprices-thenlaybetween
59$inGermanyand174$inItaly),hasgrownconsiderably lessrapidljr
since:theaverageratefortheperiod1970to1974isnomorethan42$
fortheSixasawhole.Thesharpest increases inthisperiodoccurred
inPrance(61$)andItaly(about50$).Ofcoursethesefiguresmustbe
interpreted inthelightofthedifferent ratesofmonetary depreciation

inthesevariouscountries .
Thefiguresinnowaymodifytheconclusions reached "bytheCommission
initsCommunication tctheCouncilof24July1972.Thereaderis
therefore referred totheconclusions reachedatthattime.

*•12– HI/197/75-E
SUP?LSTISMTilEYNOTENO2to
Doc«SEC(72)2601'finalof24July'1972v'
Lataprocessing

13- ι-,ΙΛ:>7/?:~··!
Tosupplement itscommunicationofJune1972,theCommission isnow
inapositiontopresentthefollowing factualinformation :
1,TableIIonpage1Jofthiscommunication isto"bereplaced bythe
followingtablerelatingtotheperiod1971/72:
TableII
Shareofthevarious constructors inthemarkets ofthecountries ofthe
Community ofSir,theUnitedKingdom andothercountries
Period1971/72
(infoofrespective values)
iGermany Bénélux France\Italy|Royaume UniOthersjTotal ;
IIBM I57•60
r57.5nn
i !38,4 65|59,47 ;
|Honeywell .(ms)j!!•'8-9,518,0I11- 7,0|6|10
UÏÏIVAC jI3!5"•r•3,517I
I !
!2,5s3,74'|4,4
CDC 34I3,5 1,84,5|3,27 !
; j
iBurroughs
Ji3r4i1,52,5
i3,9
- .3,5!3,12 :
ICL 0,5 3 3,0l34,7 !5!7,83
Philips/Siemens/
CII!16,5812,0ii
!2,5!J ;0,9I
i_-i2j6,93
iOthers*
I9I6,5 1,0I1»5
_! _J9,6j
i10i4,85 I
! L
Total !100$ 100%|100,0$lOOf,|ιοο,σ/αI1005ijioo*S 1
1 i
Sources :Délégation al'Informatique ,Paris1972
Department ofTradeandIndustry ,London1973

-14- III/197/75-E
2.Table III ,onpage 18ofDoc.IIl/846/72fwasbased ontheresults
ofasurvey conducted "bytheDie"bold-Deuts chlandGmbH fortheWest German
Government ,Sinoe this survey hasnotbeen repeated intheintervening
years ,theCommission cannot update thefigures supplied .Itwould seem ,
however ,that thetrend hasnotradically changed ..
3.According ;totwosurveys carried outbythe "Commission pour le
Tr:d~ -orient etlaTransmission de1'Inform ation",onbehalf ofthe
Delegation del'Informatique ,thebreakdown bj^origin ofcomputers inuse
inPrance was asfollows onthe dates shown :
Table IV
Breakdown byorigin ofcomputers inuse inFrance at1January 1973 '
Overall market andpublic orsemi-public buyers
(invalue )
jΙΜ снв :en other European : ..others i
a)government
departments : !
at1.1,1970 : 1
1.1.1971 :" I
1.1.1972 :
'1.1.1973 : .55%
46,5%
41%
40fo15%
16.3'
16jo
|2&jo
\:– - j
Il<# !
û16,5$
I22% '
\12%j'■ i
S, .n.d.» . ...!
! 5,5% . |
! 4% . ...
I% !. j
-n.d..j
15,# j
i17,O$ |
-17,<$ I
: Î
!b")"^public undertakings :!
! at1.1.1973 -:... .|55% I9% 14%1 –
I " . !.
I h.dé î n.d. |
Ic)national level : I
|at1.1.1973 : .!51% |14* !1.7# ? 6,5% , j,..-.'.11,556

-15- .ΤΤ1/797/
' - 1; ;«*•••^
> * *
4»Inreplytoaparliamentary-question onprogresscontracts (contrat3
deprogres),thefollowinginformation oncomputersinuseinpublic
administrations inBelgiumwasobtainedinJuly1973;percentages relate
totriecumulated capacityof.thememories : ..
-IBM:60$
-Siemens :30$ '
-Philips :5S&
-NCR:2,3%
-CHB:2%
5#According toadocument drawnupfortheSelectCommittee onScience
andTechnology oftheUKParliament ,thebreakdown byoriginofcomputers
inuseintheUnitedKingdomwasasfollowson'1January1974:l
TableIV
Breakdown byoriginofcomputers inuseintheUnitedKin^dcciat1January '
1974"Overallmarketandpublicandprivatebuyers
(invalueandin%)
•■1j"»1*■ 1 »'.
| ICL|TotalUnitedKingdom ;IBM'\otherUSjothers !
Privatebuyers
Centralgov't •
Localgov't
Publicunder«~
takings24,9)26,7 |4T,4123,4j'2,5 j
50.4|'*3,3 11994f15»2j;1,3;j
55,3156,9 j24,3!17,8-|.1,2'|
:S 1 1 | j
41.5151,3 !32,9j15,2j0,8'j
i : ! !
,lj :. t-ji i–----i
TotalUK |32,9|37,5 (39,7120,9 j*2,0"1j
6.SincetheCommission 'sCommunication totheCouncilin1972,the
MemberStateswithatechnological development policyondataprocessing
haveoontinued theiraidmeasures tonational producers andtoproducers
whohaveagreedtobecomeestablished ontheirsoil.

-16- III/197/75-E
Thetablebelowillustrates theextentofthisaidinthethreecountries
oftheSixwhichapplyanationalpolicyinthisfield,andinthe
UnitedICingdaa :
TableIV.Ъ
Aidsandotherformsofnational supporttothedevelopment ofdataprocessing
intheCommunity
(«000000u.a.)
Hardware jApplications |
ί__.Belgium
iProgress contractas 25%marc,ofpublic jcontracts toPhilips |
25$max,toSiemens j1971-73' 4
!
5
!
Б^апсе 1967-70 -109 1971-75 .158 |1967-70 :
1971-75 :7,2
29
West
Germany :1967-70:65
r1971-75 =190 i
I
i1967-70 :
1971-75 :15,6
150
United
Kingdom
i1968-Sept,
i1976:
144j
i
1supporttoICL I
Source :National delegations
Thistableiacludesallformsofdirectaid:subsidies ,research contracts ,
loansrepayable intheeventofsuccess,etc.
7,Theconclusions presented intheCommission 'sCommunication tothe
Council on24July1972havebeenconfirmed andamplified intheCommission 's
Communication totheCouncilof21November 1973on"AcommonPolicyon
DataProcessing ",towhichthedelegations arereferredforfurtherdetails
onspecific aspectsofthissector.

-17- TTT/tf~T,*+•XX'/-Jû«
SUPPLBIMTARY NOT"?NO3to
Doc,SEC(72)2601finalof24July1972
Civilaviation

-18- III/197/75-E
Inthecivilaviationsector,openingtipmarketstointra-Community
competition isnotreallyaprobleminitself;almostallcivilaircraft
arenowadaysbuiltbymultinational co-operation andaretherefore no:
longernational products.Ontheotherhand,Europeisstillsuffering
frcrothealmostcomplete absenceofCommunity production ofcommercial
long-haul aircraft,forwhichitistotallydependent onimportsfrom
theUnitedStates.Therealproblemistherefore Europe'sexcessive
dependence onforeignproduction ,whichishighlydiversified andscaled
tomeettherequirements oftheworldmarket,andalsothedifficulty
oflaunching programmes tomakegoodpresentshortcomings inEurope.
Becauseofthistherewouldbelittlepointinsupplying figures onintra-
Community tradeanditstrend;ontheotherhand,thereasonswhy,in
theotherpartsofthedocument ,welimitedourstatistical information
totheSixcountries oftheoriginal Community nolongerapplyandit
seenspreferable topresentherethefiguresfortheenlarged Community .
I ,
SinceI960,theturnoverofaerospace industries inalltheNinecountries
hassteadily increased :
TableIVc
/Trendinturnover oftheaerospace industries inEuropeandtheUnitedStates
i960to1973
(*000000u.c.currentprices)
i960 r1970 1972 1973
A;Cccimunity ofITine-!1.809 4.039 !5.329 6.898
B)Forcomparison
•UnitedStates 15.132 24.930 i22.609 23.771
1Estimate

–19- TTT'''T"!
"**/V•x'i>
Theturnover oftheaerospace industryintheCommunity hasteen
multiplied by3.7»thatoftheUnitedStatesby1,5(currentprices);
however,theturnoverintheCommunityis-stillonly29$thatofthe
UnitedStates,'•.
TheCommunity'stradebalanceincivilaviation equipment isindeficit
endthisdeficitistendingtoincrease ;itwasestimated ataboutI70
mu»c«.peryearonaveragefortheperiodI960-197°andseemsto
haveapproached 750mu.a.peryearonaveragefortheperiod1968-–1973.
Thissituation ismainlyduetothelackofanysignificant production of
long-haulaircraftintheCommunity duringthisperiod(1968-1973),the
requirements forthesebeingcoveredbyheavypurchases oflong-haul
aircraft fromtheUnitedStates(2300mu.a,duringthisperiod,"of
whichalmost1500mu.a,forpurchases ofBoeing747s)•
Community production ofshortandmedium-haul aircraft hasbeenmainly
basedonthefollowing types-(period1963-1973);'
Pprthe.period1968.-1973 »•thebalance ,ofproduction' andtradeinshort
andmedium-haul aircraft wasasfollows :SalesinEurope.Salesintherestofthe
world.
Fokker27
Foklcer28
'TridentCaravelle
.BAC11131-
67
•19■
27
.381
•"51;•
21
22
6
»••• *Consumption *
Production :1101mU4a».ofwhich 7^4escorts(in*000000u.a.)
Trade
Imports +1.839•317
■1.839
2.623difference -1.522

-20- III/197/75"E
Fortheentire range ofcommercial aircraft (including long-haul aircraft ),
the deficit amounted to ;
(«000000u.a.)
long-haul -2246 i
short and medium -
haul -1522
-3768
Therelative value oftheEuropean market (value ofthecommercial fleet )
andthecoverage ofrequirements "byEuropean products have evolved as
follows :
i
IУзаг
!
L !EECmarket aspercentage.
Market share ofEuropean products !
ofworld market (x)world(x ) EEC j
1970
t-.14»7> , . 9,5% | 33$
1971 :15,4% 9î,2/S A 26$, |
i1973 18,2^ 6,6$ | 24# i
1974 I 17.9 /5| 5t9fo I 2(# |
(x)
v'Except USSR andChina
Thus ,theincrease intherelative value oftheCommunity market is
accompanied "byasha:rp drop inthemarket share ofEuropean products not
only intheworld but also intheCommunity .
With regard tothemain andmost recent production programmes ,sales of
Concorde seem tobelimited to9firm sales and5options until theaircraft
isbrought into operation ;asregards theAirbus ,theevolution ofsales
isfairly slow (13firm sales in1972 ;24at31October 1974 );however ,
anumber ofoptions approximately equal tothenumber offirm sales shows
theinterest aroused bythis aircraft ,theonly twin-jet wide-body airliner
brought into operation inSpring 1974#

-21- ιιιΑ:ί'Τ-·
StlPPLEHEIfTARY 1T0TENO4to..
Doc.SEC(72)2601finalof24July1972
Equipment forconventional andnuclearpowerstations

22- 111/197/75-2
1,Thefollowing tablegivesthemaximumnetcapacities ofthethermal •
powerstationsthatbecameoperational in1970»1971a*1'!1972;
TableIVa
Capacities ofthethermalpowerstations thatbecameoperational inthe
Community oftheSixin1970,1971and1972
(inMVJe)
! !
I
;Year
r
iNon-nuclear power
stations (thermal
andgeothermal )Nuclear powerstations Total
|1970
ί1971
1972;6.393
j8.347
5.35336
465
1.8286,429 |
8.812 |
7.181 !
» :
!Total1970-!
!72 !
iI20.093
!2.329 22.422
Onthebasisofthespecific costsmentioned bytheCommission mits
firstillustrative programme ,thetotal ,valueofthetradeinquestion
canbesetatsome$3000million,ofwhichnonetheless onlyhalf,
or$1500million,resultsfromthesupplyofmechanical andelectrical
items.
2.Thereservations ,alreadymadeinthe1972Communication tothe
Council,regarding thepossibility ofascertaining precisely thelevelof
tradewithintheCommunity inequipment foruseinpowerstations ,still
applyintheirentirety.Forpartsofequipment forwhichexternaltrede
statistics providevaliddata(multi-tubular boilers,steamturbines,
turbo-alternators andtransformers ),thevalueofintra^-EEC exportsreached

-23
s111/197/75-E
so4ep31millionin1971(1971 Ascomparedwith1968and1969
27and20million respectively )thisrepresents arelativedecline,
whichmakestheobjective ofopeningupthemarketsevenmoreremote,
3.Anattempttoestimatetheshareoftheprincipal equipment forpower
stations (steamturbines,alternators )accountedforbytheinternal
production oftheCommunity countries canhemade "bycomparing thefigures
resulting fromtheOECDstatistics fordeliveries "byproducers inthe
sixcountriestotheirnationalindustries (non~exported part)with,those
appearing intheCommunitystatistics onthenewentriesintoserviceof,
powerstationsintheyearfollowing thatofthesedeliveries .Itgoes
withoutsayingthatthemethodchosen(forwantofamoresatisfactory
one)onlygivesacceptable resultsifdatarelatingtoseveralyearsare
takenintoaccount.Inthefollowing tabla,therefore ,onlythegrand
totalforthefiveyearssurveyed ,mustbeconsidered andnotthefigures
foreachyearseparately , •.;_..
:TableV
Conventional thermal andnuclear powerstations
Non-exported deliveries ofsomelargeitemsofequipment (yearX),and
creationofnewcapacities (yearX+l)
|Tear|
I I
» !Deliveries remainingin'the j
producing countries (yearX)ijNewcapacities put
iservice (yearX+mto
1)i
!
f
I
i
i
1Steamturbines
(iïw)IAlternators
j.(M)I (Ml'J) j
*
:: : : 1
1 j
1967=x 6,072 I6,657 ■5.4181
i
1968=^II5.417 !I5.487 4.919i
I1969=X 6,179 7.093 6,429 i
i1970*X I9.513 !8,520 8,812!
i
1971=^!4.666 i4.347 7.181
i1967to
!1971
i..31.847 !32,104 i 32,759τ
!
|
i
.mumnetcapacities

-24- 111/197/75-E
Thefiguresofthelastcolumnfor1967-69arerevised OECDfigureswhich
differfromthosepublished bjrtheCommission in1972.
Acomparison ofthetwotimeseriesshowsthe,ttheimportsofthecountries
oftheCommunity oftheSixcoilingfromalltheEuropean MemberStates
ofOECD(including MemberStatesoftheEEC)canhardlyhaveexceeded ,
fortheentirereference period,2to3foforsteamturbinesand
alternators .Thisconclusion isnotstrictly accurate inviewofthe
uncertainty thataffectsthedifferences inphaseintheannualfluctuations
ofvalues.Furthermore ,theOECDstatistics neglectturbines and
alternators ofacapacitybelow10Mtf/MVA.Nonetheless ,theresultis
convincing enoughtoenabletheCommission toconcludethattotal
European and–evenmore–intra-Community tradefortheperiod1967to
1971wasnegligible asregardsprincipal mechanical components forpower
plants.
4.Thefollowing tableextendsTableVIoftheCommunication ofJuly
1972upto1971!
TableVI
Powertransformers andboilers
Deliveries inEECcountries andexports fromthesecountries toEuropean
MemberStatesoftheOniCD
YearPowertransformers
Total |Exportsto 1
deliveries IEuropean
EEC(inMVA)!MemberStates
|oftheOECD
j(inMVA)Ratio
(inf0)Total
deliveries
EEC(in
tonnes/h)Boilers
jExports 'iRatio
to !(in%)
European i
Member 1
Statesof|
theOECD
(intonnes/
1957
1968|
1969i
1970
197143.892
52.793
65.072
63,658
75.528I3·343
4.812
5.286
3.933
5.0637,6
9,1
8.1
6.2
I6,7!21.914
!23.572
!26.753
!38.018
!45.047!916
11.224
î2.105
I2*500
S3.3554,2j
5,2|
7,9j
6,6J
7,4i
1967-1
1 !
!f1i300.9431
!22.437I7»5155.304
j
!!10.100
t
f]6,5
Source:OECDsurveyofelectric powerequipment

25r*
,ï111/197/75-E
'··1;
Inthepreceding table,theratiosofexportstodeliveries concernall
theexportsoftheSix!to'xvhatever countries .Onlypartoftheseexports
consisted ofintra^-Community trade 5theabsenceofstatistical datadoes
notenableittobedetermined .
\ •
5.Withinitsworkingprogramme onthesituation andperspectives of
theindustries responsible forheavyelectromechanical andnuclear
equipment ,theCommission intendstoengagethisyearuponastudyonthe
degreeofmarketliberalization inthissector.Itishopedthatthe
results fromthisstudywillbeavailable inthefirsthalfofnextyear.

-26- 111/197/73-E
SUPPLEMENTARY NOTENO5to
Doc.SEC(72)2601finalof24Jul;,'-1972
Railway equipment

-27- 111/197/75-E
■.i'
Inthisanalysis ofthereasonsforthecompartmentalization ofmarkets
andinitsconclusions ,documentHl/846/72of24Jul;''1972isstill
completely uptodate*
Prom1970 "to1974»noincrease wasnotedinintra^-Community tradein
rollingstock,whichhasremainedattheverylowlevelof3to4$of
apparentconsumption.ThepeakreportedindocumentHl/846/72for1970
provedto"beanephemeral phenomenon duetothefulfilment ,byFrance,
ofalargeorderfromtheBelgiannationalrailways (SNCB).
Ontheotherhand,1thesituation regarding theproduction ofrolling
stockhassubstantially changed# Therehasbeenadistinct tendency towards
recovery since1970*Theproduction ofwagons,whichamountedto17000
unitsin1968fortheSix,reached20000unitsin1970andexceeded
30000unitsin1972#Theproduction oflocomotives becamestabilized
between 1970and1973ataround500unitsofmorethan1000horsepower ,
andtheproduction ofrailcarsincreased from300unitsin1968to400
in1970and500in1972,
Sincethepublication ofDoc,III/G46/72ofJuly1972»theOECDadhoc
workingpartyontherailwayrollingstockindustry hasceasedwork,thus
depriving theCommission ofitsmainsourceofstatistical information ,
vInviewoftheabsenceofanyothersourceofco-ordinated information on
thissubject,theCommission iscurrently notinapositiontoupdateits
previousfiguresonthevalueoftherollingstockproducedintheCommunity,
Alarge-scale surveyisbeingconducted amongtheproducers oftheNine
MemberStatesandshouldprovidetheCommission withthenecessary data
inthesecondhalfof1975#
Sincetheenergycrisis,therehavebeennumerousindications thatthe
tendencytodeveloprailtransport willhavetocontinue.
Figurerevisedincomparison withthereportof1972,becauseofthe
improvement inthestatistical datathathavebecomeavailable inthe
meantime.

-28- IIl/197/75-E
Itshouldalsobenotedthatthereisanincreasing demandforurban
transport ,whichtherailwayequipment industrywillhavetosatisfy.
Asregardspermanent wayequipment comingtindertheECSCTreaty(rails,
guardrails,sleepers ,fish-plates androlledbedplates),theproduction
leveliatheCommunity oftheSixremained steadyataround1,10to1,15
millionmetrictonsperyearbetween 1970 1973»Thisproduction ,
inwhichalltheMemberStatesparticipated exceptfortheNetherlands
(withabout25000metrictonsperyear,Belgium'sproduction has
becomemarginalsince1970)»hadremainedconstantly abovetheapparent
consumption oftheCommunity whichfluctuated around900000metrictons
peryear.Production currently represents avalueofabout£>350million,
ofwhich^280millioncorrespond totheinternalconsumption ofthe
Community ,
Thelevelofintrar-Community tradehardlyvariedatallduringtheperiod
1970-72;intra^-Community importsduringthisperiodaveraged 7,4%
apparentconsumption (the1972reportindicates 6to8f0onaveragefor
theperiod1960-70),Atthevers'-mostitcanbesaidthattherehasbeen
averyslightandstatistically negligible increase inimportstoPrance
fromotherMemberStates,Aswasthecasetwoyearsago,mostofthe
intra-Community tradeisonceagainduetoimportsbytheNetherlands .,
whichhasceasedallproduction onitsterritorjr ;thismakesthelevelof
tradebetweentheothercountries evenlesssignificant .Importsto
thesecountries fromotherMemberStateswereabout1foforGermany,7"to
8%forPrance,and5to6f0fortheothercountries.
Insummary,thesituation intherailwaysectorischaracterized currently
asin1972,byaverylowandstagnantleveloftrade.Ontheother
hand,thedropinproduction recordedin1972wasfollowed byadistinct
recovery ,duelargelytothegreatexpansion inurbantransport .This
recovery leadstheCommission tomodifytosaneextentitsprevious
appraisal oftheextentofthesurpluscapacityinthesector.

29- III/197/75-E
:1
■rV
Capacity hasbeen progressively adapted torequirements asaresult of
thelarge number ofmergers orshutdowns intheindustry ?inonly afew
years ,thenumber ofundertakings producing rolling stock decreased by
agood third ,while thenumber ofproducers ofheavy rails decreased from
14in1971 "toonly8in1974 »^"
Theproblem ofsurplus capacity nevertheless continues toexist .Under
these conditions ,theconclusions oftheCommission initsprevious report
still apply intheir entirety .Inparticular ,theCommission still
considers that anyarrangement aimed atopening upthemarkets inthe
sector in .question will have toprovide forthenecessary ancillary measures
tofacilitate therestructuring oftherailway equipment industry -onthe
regional level , ■
Itistrue that thenumber ofECSC permanent wayequipment producers '
isnotacriterion ofcapacityj rails andaccessories areonly rolled
toorder andthesame rolling mills produce girders when they arenot
producing rails .

30- 111/197/75-E
SUPPLEMENTARY NOTEHO6to •
Doc.SEC(72)2601finalof24July1972
Telecommunications ecruipmcxit

-31« 111/197/75-E
ι
1,InitscommuaicationtotheCouncilofJuly1972,theCommission
indicated thatnodirectly usablestastistics wereavailable tomeasurethe
degreeofinterpenetration inthemarketsoftheCommunity countries for
telecommunications equipment *
Sincethen,theCommission hasmanagedtodrawupatable–albeitlimited
onlytotelephonic andtelegraphic equipment bymeansofwire–inwhichthe
production figurescorrespond exactlytothoserelatingtoexternaltrade.
Thistable,vastlyimprovedinitsmethod,mustnotbecompared withthe
lessperfectversionpublished bytheCommission initsoriginalreportto
theCouncil,
Oncemore,production figuresareavailable onlyforfivecountries ,those
relatingtotheNetherlands stillbeingtreatedasclassified information .
Forthisreason,itisnotpossibletodetermine theaveragepenetration
6fthemarketsoftheSixoriginal MemberStatesbyproducts comingfrom
allotherMemberStates,Asthefollowing tableshows,theaveragefor
thefivecountriesactuallysurveyed was5,9$in1971*

Table VIII
Share oftheintrar-Comicunity imports intheapparent consumption ofline telephonic andtelegr aphic apparatus forfive
Community countries in1971 ~
(in'000 000u.a.)
Germany Belgi France Italy - Netherlands ICommunity excluding Netherlands
jProduction
Importe »'97»,0
33,9
!–ofwhich intra -)
i EEC |26,4'
Exports i *24T»3
-ofwhich in.tra-j
EEC 145,725,0
!33.5177,2
27,6
71,-8549,2 ) 442,2
16,1 | 25,9
• |
il,2 j11,2 ?
!54,7 I 45,0n.d .
42,9
33,5
43,3
Visible
consumption . 764,6 133,010,8 |7,1 I12,6
510,6 I .408,4 | :107,3
109,7
n.d .2145,9
146,4
462,1
.1815,9
j,oofintra-EHC
imports in
visible
consumption18,8# 2,2% n.d .
Sources :1production :unpublished CECD data corresponding totheSITC (STC)code 724»9(l )"apparatus fortelephony
andtelegraphy .
2External trade :external trade statistics forthecountries oftheEEC (NIMEXE ),heading 85.13
Nota :thefigures inthis table arenottobecompared with those ofTable VTII ofDoc.Hl/846/72,-

III/197/75-E
'£,Γ'■■ '
2,ForonecountryoftheCommunity ,WestGermany,theavailablefigures
enabledatimeseriesforthesameequipment' "tobedrawnupshowingthe
development ofintra-Community tradeduringtheperiodfrom1967to1972.
Acertainincreaseisnotedhereinthevolumeofimportsfrom1970onward,
anincrease whichcouldverywellbeexplained bythechange,fromtheend
of1969,intheparityoftheGermanMarkascomparedwiththecurrency
oftheothercountries.Nonetheless ,thevolumeoftradestillremains
verymodest,sinceimportsneverexceed5*6$ofapparentconsumption ,of
which3.5$comefromtheEEC.
TableIX
Shareofmtra-Community tradeintheapparent consumption oflinetele­
communications equipment inWestGermanyfrom1967to1972.
('000000u6a«,atcurrent
ratesofexchange)
1967 1968 1969 !1970 1971 1972
Production
Imports
-ofwhich
intra-EEC
Exports
-ofwhich I
intrar-EEC j
Apparent j
consumption !
"Joofimports !
fromall j
sourcesini
apparent j
consumption
$ofintra-
EECimports
inapparent
consumption435,0 !
8,0!466,0
9,9
i4,6 ;5,2
I118,3j129,7
j20,6 ;21,5
324,7 I346,2600,1 i756,0 !976,0!1241,0
12,7|23,9i33,9j53,0
6,7 I13,8 !26,4 [30,6
132,7 1189,6 1247,3i271,8
21,5 34,8 j45,7 I58,7
2,5$ !480,1 !
2,6?S I590,3 !
4,1$!764,6
5,6f01022,2
5,2$
\ I
Saurers:production :\DieProduktion derwestdeutschen Elektroindustrie ,
successive volumes,ZVEI,Frankfurt/îlain
2_...._... "External trade:External tradestatistics forthecountries ofthe
EEC(NIMEXE),heading85.13,SOEC >.
WTheproduction ofwhichrepresents inGermany,byvalue,agoodthird
ofthetotalproduction oftelecommunications equipment (lineplusradio
plusline-wire andcable) s• •

/
-34- III/197/75-E
3.Forline–wiresandcables,theZVELstatistics givethefollowing
situation asregardstheFederalRepublic ofGennany:
TableX >
Télécommunications linewiresandcables:shareofimportsinapparent
consumption inWestGermany
Production jExports IImports Apparent
ConsumptioniProportion of
;apparent
iconsumption i
!accounted forbyi
I! jimports !
! L i i
? jYearjMillions of
|DM,
«-- -Millions
ofm
.1 JMillions !Millions of
ofM|3M
! »fromaxlfromj
sources EECj
1969
1970
1971
1972994
1.078 !
1.039^I
1.034^95,7
123,0
j167,4
139,632,2 j
47,2
62,2 ]
63,4I933,5
1.022,2 j
|.933,8
957,8 I3,8$ 2,57$
4,7?° 2,9?*
6,1% 3,3#
6,6^4,0$-
Sources :'Production :ZVEE
Externaltrade:NIMEXE
CiEstimate
With2.5"to4,3ofthetotal,theshareofintra^-EEC importsinapparent
consumption is,onceagain,verymodest#nevertheless ,someprogresshas
beenobtainedinthelastfewyears.
4.Since1968,investments bynationalpostandtelegraphadministrations
intelecommunications havedevelopedconsiderably ,asthefollowingtable
shows:

-35- I11/197/75-E
■TableXI
Invastraent bynational postandtelegraph administrations intelecommunications
IVo5to1972
('000000u.a.atcurrent
value) '
Country 1968 I
i1970 ■i1972 |
; i
I' 11...... Μ-.»....... -
|Belgium(RTT) .118 . I123 170
WestGermany(PTT)![n«d. j
; i1.050 2,036 S
1 t
IFrance(PTT) |
t|294 i368 |666 j
I i
Italy(SIP) i266 1in.d. 740
jNetherlands (PTT)
ln„d# j169 248
'II.>!I II.I III
Thesefigures mayinsanecasesincluderealestateinvestments sr.dare
thusnotstrictly comparable#

COMMISSION
OPTHE
WROpiuïï ca.mwiiTii'ST
- NOTETOTHECOMMISSION
(Ccxnmunication "bySig.Spinelli)
Re:Updatedversionofdocument SEC(72)2601finalof24July1972:
PUrstcommunication oftheCommission totheCouncil onprogress
inliberalizing publiccontracts andcontracts awardedby.
undertakings responsible fortheoperation ofservices ofgeneral
economicinterestinrespectofsupplies.
I,Byanotedated24July1972,theCommission senttotheCouncil,
forinformation ,afirstcomiaunicationonprogressinliberalizing public
contracts andcontracts awardedbyundertakings responsible forthe
operation ofservicesofgeneraleconomicinterestinrespectofsupplies ,
intheConmrani Thisreport,whichevidenced towhatextentan
exchange ofsupplies andheavycapitalgoods,whicharemainlypurchased
bypublicauthorities andutilities took ,placeatthattimebetween EEC
countries ,hadbeenpresented attherequestofseveraldelegations in
theCouncil,ontheoccasion oftheexamination oftheCommission 's
Memorandum onIndustrial Policy# Themainconclusion drawnfromthe
situations described inthatreportwasthatwhilethegradualabolition
ofcustomsdutiesandquantitative restrictions hadledtovigoroustrade
intheCommunity inallproducts boughtbyprivatefirmsorprivate
I
individuals ,thesamewasnottrueofcapitalgoodsandarticles of
advanced technology generally bought .;bypublicadministrations orby
undertakings responsible foroperating economicservicesofgeneralinterest.
Consequently ,theonlywaytogradually breakdownthepersistent Compartment'

-2-
alization ofthesemarketssovitallyimportant forEurope'stechnological
futureseemedtolieinstrongmeasurestoachieve ,forinstance ,the•
implementation ofprocedures ensuringthatalltheCommunity'scompetent
suppliers areconsulted ,theremovaloftechnical ,administrative and
customs "barriers ,jointdecisions bythemajorpurchasers orrelevant
publicauthorities regarding thetypeofequipment tobedeveloped inthe
futureand,whereappropriate ,Community supportforthejointdevelopment
ofsomenewtypesofequipment ,
II,AtthemeetingofthePermanent Representatives Committee heldon
17July1974,theItaliandelegation expresseditswishforanexchange
ofviewstobeheldontheCommunication justmentioned .Withaview
tosuchadiscussion ,theCommittee askedtheCommission toupdatethis
Communication assoonaspossible.
Attachedtothisnote,theMembersoftheCommission willfindadraft
textoftheupdating requested .Although thePermanent Re-iresentatives
probably thoughtthattheupdating ofa1972document in1974shouldtake
intoaccounttheintervening enlargement oftheCommunity ,thecompetent
services didnotconsider ,saveexception ,thattheycouldreasonably
includethethreenewmembercountries inastudyontheeffectsofthe
liberalization ofpublicmarkets.Thetemporary persistence ofsome
customsdutiesandtaxesofequivalent effectbetweenoldandnewmember
countries ,thenon-availability ofindustrial statistics fortheperiod
aftertheenlargement oftheCommunity and,mostimportant ofall,the
lackofanadequate spanoftimetoallowforanaturally veryslow
evolution totakeplace,wouldatpresentdeprivesuchaninclusion of
allitsmeaning.Thesituation inthenewmembercountries cantherefore be
onlyanalysedinafuturereport,
III,TheCommission isrequested tokindlyapprovetheattacheddraft
reportbythemeansofawrittenprocedure ,andtoauthorizeits
transmission totheCouncil,