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DOCUMENTS "COM"
COM(76)678
Vol.1976/0204

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(76)678final
Luxembourg.15thDecember1976
COMMUNICATIONFROMTHECOMMISSION
concerningthe"balanced ,distribution of
ordersintheshipbuilding sector.
COM(76)678final

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EXPLANATORY MEMORANDUM OilANOECD ARRANGEMENT
CONCERNING THE PREVENTION OPIMBALANCES INTHE REGIONAL
DISTRIBUTION OPNEW ORDERS INTHE SHIPBUILDING SECTOR
Thesignatories ofthe "general guidelines "have acknowledged that the
consequences ofthecrisis intheshipbuilding sector should beshared
outequitably .Furthermore ,theobjectives setoutinthose guidelines
require consistency between theadaptation ofproduction capacities for
the1980 'sperspective andtheworkload oftheshipyards asaresult of
the trend inthe order books .
Asmarket mechanismus alone cannot berelied ontoachieve those two con­
ditions ,itisimperative toapply asystem ofdiscipline aimed atachieving
abalance which combines these conditions intheregional distribution of
neworders .Such asolution becomes essential asashort term emergency
mesure inorder not toprejudice theresults oftheprocess oforderly and
ecyuitable adjustment ofcapacities .
Considering that such discipline is,atpresent ,only possible among the
signatories ,therelative position ofthese signatories canonly beassessed
onthebasis ofthe share ofthemarket which they represent together .An
attempt will bemade toachieve theproposed balance byanequitable regional
distribution ofnew orders ^thecreation ofasuitable information system should
enable ,aconstant watch tobekept onthe trend intheir relative shares .
Theparties toanagreement onsuch asystem ofdiscipline must strive toendure
itseffectiveness ;this implies that they must try tofind solutions inevery field
concerned .Thus ,thefact that theconditions areanimportant factor inthe
achievement ofthedesired balance means that terms and conditions ofsale
must bemonotored asclosely aspossible .

–2«»
O^CD".^..m\TirrjToonc^arciraTinnpnsvTaiTrow
OFIHBALANCSSINTHIS;WGIONALDISTRIBUTION OPiro.roraatsIHmanpwmnnros^cTort
.loparticipatinggovernmentsconfirmtheirintentiontoindentapo-
inThT-t0"b16:0"eqUitabledi8tri^tionofnewordersplaced
sta-c^ofTrieSoadhePlnff"t0thGgeneralguidelines"duringtheacute
"^CriS1Slnordert0retainthepossibilityofadaptingpro-
cueioncapacitiesinanefficient,orderlyandequitablewaytofuture
conditionsontheshipbuildingmarket.
J
2.Theythereforeacknowledgethatthisobjectivecouldbe'attainedifthe
regionaldistributionofnewo^ersweretofollowproductiondistribu-
"londuringrecentyears.
3.JnviewOfthefactthatthevariouspartiesarefacedwithproblems''"Ca°harea'thiS°°uldbeattainedbyassessing
distributionbetweenthetw,geographicalareasrepresentedbyJapan
theotter!^^th6°0U"triBS"hOSC t°theAWESon
4"Pr°dU!ti0ndistritaW-mentionedin§2,theparticipants
prltiblnI'"'0re°0rtedin0grt(1)'forth°89*»««.–
paotibaUythesameandthatequitycouldthereforebeachievedbyan
equaldistributionoftheordersonthe>v•/,»periodofvaVv+* 3818(1)PlaceddurinStaeperiodofvalidityofthisArrangement.
5«Thepartiesthereforeunriprtniro ^ensureth,t«,mTtske*°A°everythingwithintheirpowerto
theindustriesintheirrespectiveareasadheretotheobjec­
tiveinquestion.Tothisendtheyacknowledgetheneedforco-operationbetweenthe/Lira?andr. co-operation
."'6JaPan<!«>associations,intheachievementcf
«naspectsofthisArrangementwithinthelimitationsimposedbytherulesofcompetition.

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6.Theachievement oftheseobjectivesrequirestherapidandadequate
mutualexchangeofinformation onthetrendintheplacingofnewor­
ders.Thepartiesthereforeagreetoadapttheinformation systemon
newordersintroducedearliervlithintheframeworkoftheapplication
ofthe"generalguidelines".
7.EachpartytotheArrangementundertakestosubmitmonthlytotheSecre­
tariatoftheOECDlistsofthenewordersrecordedbyitsshipbuilding
industryforcommercialseagoingvesselsof100grtormore,giving
thefollowingdetails:
.. - \
-countr'-ofconstructio"1
-categoryofvessel(l)
-informationinthecaseofeachcategoryoftonnageon:thedead,
weirht.":rossregistertonnageandcompensated sjrossregister
l:o1i.a^e(l)
.–"oD.r0:"delivei"*r
-nou^tr*'ofregistration or,failingthis,countryplacingtheorder
Thiscommunication shallbemadeultimately onthe20thofthemonth
followingtheonetowhichthelistrefers.
8.Thepartiesalsoundertaketoindicate-withthesamedetails-
thevolumeoforderscancelledand,whereappropriate ,thenumberof
ordersplacedbythesamecontractortocompensateforsuchcancella­
tions.
9.Inthelightofthisinformation ,therespectivepartiesbelongingtoeach
\
oftheareasundertaketomakeamonthlycomparisonfortheirareaof
thevolumeofordersplacedwithitsindustryduringtheprevioustwelve
monthsandthetotalvolumeofordersplacedwithinallareas.Ifitbecomes
clearthatthebalancedefinedinpoint4abovehasnotbeenachieved,the
partiesbelongingtothe"areawhereordersexceedtheirproportion
undertaketodoeverythingwithintheirpowertorestorethatbalance
andtoinformtheotherpartiesofthemeasuresadopted.
0)lining;ratesto\>eestablishedin015CJ)frame .

_4-
10.Thepartiesagreetocarryoutacaiarterlyjointexaminationtoen­
surethattheprinciplessetoutabovehavebeenapplied.Withinthis
contextanassessmentcouldbemadeoftheeffectonthebalancein•
questionofcancellations andsubstitutions inorders.However,ifa
partyconsidersthatitsindustrjrhasseverelysufferedbecauseof
thenon-observance oftheabove-mentioned principles ,itisentitled
torequestthatasessionofaspecialadhocworkinggroupbecon­
venedwithinaf'orthnight .Thisworkinggroupwillinvestigatethe
complaintandthepossibleconditionswhichwillenablethebalance
toberestored.
11.ThisArrangementshallenterintoforceon1stJanuary1977and,in
theabsenceofaunanimousdecisiontothecontrary,itshallre­
maininforceforallordersplacedupto31December1978-Forthe
applicationof§9'thepartiesagreethatthemonthlyliststobe
communicated inthecourseof1977willincludealsothecorresponding
listsfortheperiodoftheyear1975requiredbythesameparagraph.