ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(77)343
Vol.1977/0116

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(77)343final.
Brussel,July19»1977
COMMUNICATION FROMTUECOMMISSION TOTHECOUNCIL
On"theconclusionandimplementation ofanAgreementestablishing
aEuropeanLaying-upFundforinlandwaterwayvessels,following
Opinion1/76oftheCourtofJustice,
.PROPOSALFORACOUNCIL"DECISION
amendingthedirectivesappendedtotheCouncilDecisionsof
•28December1972,17February1975and17Kay1976onthe
openingofnegotiationsforanAgreementontheimplementation
ofRegulationsforthetemporarylaying-upof-vesselsforthe
^transportofgoodsandapplicabletocertaininlandwaterways
(submittedtotheCouncilbytheCommission)
COM(77)343final.

COMMUNICATIONPROMTHECOMMISSION TOTHECOUNCIL
Ontheconclusionandimplementation ofanAgreementestablishing
aEuropeanLaying-<upFund,forinlandwaterwayvessels,following
Opinionl/76oftheCourtofJustice,
and:
–withdrawingtheProposalforaCouncilRegulationconcludingtheAgree­
mentestablishing aEuropeanLaying-upFundforinlandwaterwayvessels
andadoptingtheprovisionsforitsimplementation (presentedtothe
Counoilon28July1976)i
–presentingaproposalforaCouncilDecisionamendingthedirectivesan­
nexedtotheCounoilDecisionsof28December1972,17February1975and
17May1976ontheopeningofnegotiationsforthatAgreement.

Communication from "th.8Commission "to "fchoCouncil on *thcconclusion
andimplement ationofanAgreement establishing aEuropean laying –upfund
forinland ,waterway vessels ,following Opinion l/76oftheCourt ofJustice ,
and :
-withdrawing theProposal foraCouncil Regulation concluding theAgree­
ment establishing aEuropean Laying-up Fund forinland waterway vessels
andadopting theprovisions foritsimplementation (presented tothe
Council on28July 1976 );
–presenting aproposal foraCouncil Decision amending thedirectives
annexed totheCouncil Decisions of8December 1972 ,17February 1975
and17May1976 ontheopening ofnegotiations forthat Agreement .
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I.THE FACTS
1. Onthebasis ofthe direotives adopted ,amended andsupplemented by
theCouncil initsDecisions of28December 1972^,17February 1975^2\
and17May1976^,theCommission negotiated withSwitzerland anagreement ,
towhich contracting parties totheRevised Convention fortheNavigation of
the Rhine and the Convention for the canalization ofthe Moselle would be
parties together with theEuropean Economic Community ,ontheimplementa­
tion ofregulations forthetemporary laying-up ofvessels forthetrans­
port ofgoods andapplicable tothewaterways subject tothe arrangements
laid down bythose Conventions *
Negotiations oulminated inagreement byalldelegations ontexts
which comply with thedirectives given bytheCouncil andwere initialled
bythose delegations' -negotiators on9July 1976 .
2. After theconclusion ofnegotiations theCommission approved ,on
21July 1976 »andthen Bent totheCouncil thedraft Agreement ,andits
annexed draft Statute ,establishing aEuropean Laying-up Fund forInland
Waterway Vessels together with aproposal foraregulation concluding
thatAgreement andadopting provisions foritsimplementation ^.
(1)Doc.R/2904/72(Trans 170)
(2)Fov.T/351/75(Trans 16)
(3)Doo.R/II26/76(Trans 46)
(4)OJlío.C208,p.2,11September 1976

TheEuropeanParliamentandtheEconomicand.SocialCommitteedeli­
veredfavourableopinionsontheproposalon8November1976and16Dcccrr.–
ber1976respectively .
3.ForthesakeoflegalcertaintytheCommissionconcurrently lodged,
withtheCourtofJusticeon10September1976a-requestforanopinion,
pursuanttothesecond,paragraphofArticle228oftheEECTreaty,on
thecompatibility ofthedraftAgreementwiththeprovisionsofthatTreaty.
InOpinion1/76,gj.venon26April1977^^jtheCourtofJusticefound
thatthedraftAgreement ,isnotcompatiblewiththeEECTreaty.
4.,TheOpinionoftheCourtdoesnotcallinquestionthesubstanceof
thearrangements thattheAgreementasdraftedisdesignedtoinstitute.
Indeed,theCourtexpresslyconfirmedtheCommunity'scompetenceto
ooncludetheproposedagreementwithSwitzerland onthebasisofArticle75
oftheTreaty,emphasizingthatthelegaleffectsoftheAgreementforMem­
berStateswillresultsolelyfromitsconclusionbytheCommunityandthat
thefactofcertainMemberStatesbeingpartiestotheAgreementcanbe
regardedasjustifiedonlyby,andtotheextentof,thespecificobliga^-
tionwhichitembodiesregardingtheamendmentoftheMannhaimConvention.
AndtheCourtraisednoobjectiontotheobjectivesoftheAgreementas
drafted,nortotheestablishment oftheLayin^-upFundwhichwouldberun
jointlywithSwitzerland.
Theunfavourable opinionoftheCourtrelateschieflytothestruc­
tureoftheFund'ssupervisory bodyandthedecision-making processwithin
thatbodyjtheCourtconsidersthattheproposedprovisionscallinquestion
theoompetenoeoftheCommunity'sInstitutions andmodify,inamannerin­
compatiblewiththeTreaty,relationsbetweenMemberStatesintheCommuni­
tyframeworkbygivingthoseMemberStatesdirectlyooncernedwithnaviga­
tionontheRhineaprivilegedpositiontothedetrimentoftheCommunity
andItsInstitutions whosestructure,oompetenoeandinternaldecision-mar -
kingpowerwouldthusbedisregarded.
I
(1)OJHo.0107,3May1977

-4-
TheCourtalsoexpressedcertainreservations aboutitsinvolvement
inthocompositionoftheFundTribunalwhiohwould"besetupunder -the
Agreementasdrafted.
PursuanttoArticle228oftheTreaty,theAgreement,havingthus
receivedanunfavourable opinionoftheCourtofJustice,maynotenterinto
forceandthereforemaynotbeconcludedasitstandsbytheCommunity.
IX.AMENDMENTS TOHEMADETOTHEDRAFTAGREEMENT
5.InordertobringtheproposedAgreementintocompliancewiththe
Treatyitneednot"beamendedinsuchawayastoaffectthesubstanceof
thearrangements forwhichitprovides.
AmendmentstobemadetothedraftAgreementanddraftStatutewill
affectthefollowingthreeessentiallyinstitutional points:
(a)RevisionoftheprovisionsofthedraftA,.?reeinentandthedraftStatute
relatingtotheinvolvement ofMemberStatesintheimplementation of
theAgreementandStatuteandtheworkingofthearraignments provided
for:amendmentstothedraftingdesignedtoremovetheambiguityin
thewordingofcertainprovisionswhichresultsfromthefactthat
MemberStatesarepartiestotheAgreement.
Theseamendmentsrequirenochangetothenegotiatingdirectives
adoptedbytheCouncilin1972,1975andI976andtheycanbeworked
outaspartoftheprocessofrenewednegotiationwithSwitzerland ;
thisdoesnotapply,however,totheconditionsgoverningtheappoint­
mentoftheBoardofManagement:ifthesearetobeamendedtheDirec­
tivesconcernedmustbeadjustedaccordingly.
Ob)Chanareofthestructureandrulesofprocedureofthesupervisorybody
inwhichisvestedthepowertotakedecisionsnecessaryfortheimple­
mentationofthearrangements jtheessentialaimistosubstitutetho
CommunityanditsInstitutionsforMemberStateswithinthestructureof
thosupervisorybodyandtoensurethatitsdecision–makingprooessis
adaptedtooomplywiththeinternalinstitutionalruleslaiddownby
theTreaty,

This'ohange departs substantially from thenegotiating directives
adoptod "bytheCouncil in1972 ,1975 and .1976 .Consequently ,ifiticto "bo
negotiated theCouncil must adopt fresh directives onthis point toenable
theCommission toreopen negotiations with Switzerland .
Inorder tomeet therequirements stated intheOpinion oftheCourt
thesupervisory "body woiild nodoubt have tohegiven abilateral andjoint
composition andconsist ofarepresentative oftheCommunity andarepresen­
tative ofSwitzerland (theCommunity being inthi3 case represented bythe ■
Commission which would beassisted byanadvisory committee made upofa
representative ofeach Member State ,aswith -agricultural advisory committees
theArtiole 113Committee ).
This would undoubtedly comply with theCommunity 'sinternal institu­
tional rules andrespect itsautonomy ofaction with regard tothenon-mem -
bercountry inquestion .Itwould have theresult ,however ,ofdemanding
unanimity oftheCommunity andSwitzerland before anydecision could be
adopted ;itwould have the effect ,moreover ,ofgiving Switzerland aprivi­
leged position compared with theMember States oftheCommunity ,insofar
asnodecision could betaken inthis case against thewishes ofthat (non-
member )country ,whereas theCommunity 'sposition might bedecided bya
qualified majority andtherefore disregard thewishes ofsome Member States .
Inorder toovercome the political difficulties which inthis case
might arise from theadoption ofsuch arrangements ,itisproposed that the
supervisory body beofthecollegial type ,this being just within thebounds
ofwhat mayberegarded ascompatible with theprinciples laid down bythe
Court initsOpinion .
This collegial supervisory body would bemade upofmembers appointed
inapersonal capacity intheproportion ofeight bytheCommunity andone
bySwitzerland .
Under this arrangement themembers ofthesupervisory body would be
completely independent ofanynational allegiance intheperformance of
their duties andaotinthegeneral interests ofthesystem instituted by
theAgreement andStatute asdrafted .TheAgreement would make nomention
oftheoountry oforigin ofthemembers appointed bytheCommunity .

Kithregardtodecision-making procedure,thesupervisorytodywould
aotlayasimplemajorityofvotesoastsinoe,inviewofitsoollo^ialna­
ture,itcouldnotaot"byamajorityofweightedvotesorunanimously .In
ordertoprovideagainstthissituationtheStatuteshouldembodyaprovision
underwhichthecontractingparties(i.e.theCommunityandSwitzerland)would
themselves "beempoweredtotakethosedecisionsrequiringunanimityunder
theStatuteasnowdraftedandtoadoptallappropriatedirectivestopro­
videameasureofcontrolovertheactionsoftheSupervisory Board.
Italsoproposedtoprovideforthecontractingparties(theCommu­
nityandSwitzerland)tohavetutelageintheformofarightofappeal
havingsuspensoryeffect–exercised "bytheChairmanofthesupervisory
body–totheCommunityandSwitzerlandagainstdecisionsofthat"body.
(°)ChangeinthestructureoftheFundTribunal
Amendmentsrelatingtothispointareconcernedwiththeadjustment
ofcertainpowersvestedintheFundTribunalbytheStatuteandwiththe
compositionofthatTribunalasprovidedforintheproposalforaregular-
tionof21July1976.Theseamendmentsoanbeagreeduponinthecourseof
negotiation andrequirenoamendmentofthenegotiatingdirectivesof1972,
1975and1976.
III.CONCLUSIONS
6.Inthesecircumstances theCommissionhereby"withdraws"theproposal
foraCouncilregulation wichitpresentedon28July1976.
TheCommissionalsoproposesthattheCouncilamenditsnegotiating
directivesadoptedin1972,1975a*1*!1976inordertopermitittoreopen
negotiations withSwitzerlandforthepurposeofmakingsuchamendmentsto
thedraftAgreementinquestionaswillrenderitcompatiblewiththeTreaty
inoomplianoewiththerequirementsstatedbytheCourtofJustioe.

PROPOSALFORACOUNCILDECISION
amendingthedirectivesannexed,totheCouncilDecisionsof
28December1972,17.February197517May1976onthe
openingofnegotiations foranAgreementontheimplementation
ofRegulationsforthetemporarylayingwipofvesselsforthe
transportofgoodsandapplicabletocertaininlandwaterways
aaaBBQBcaBBaïa^BHBna
THECOUNCILOFTHEEUROPEANCOMMUNITIES ,
iHavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
HavingregardtotheCouncilDeoisionof28December1972ontheopening
.ofnegotiations foranAgreementontheimplementation ofRegulationsfor
-Ahetemporarylaying-upofvesselsforthetransportofgoodsandapplicable
tooertaininlandwaterways,asamendedandsupplementedbytheCouncil
Decisionsof17February1975an*17May1976,andinparticularArticle
2(2)thereof;
HavingregardtoOpinion1/76givenbytheCourtofJusticeon26April
1977,
HavingregardtotheproposalfromtheCommission,

Whereas itisnecessary toamend ,thedraft Agreement andthedraft Statute
annexed thereto ,asnegotiated bytheCommission pursuant tothedirectives
adopted "bytheCouncil on28Deoember 1972 ,17February 1975 and17May1976 ,
inorder torender them compatible with theTreaty andtopermit thesaid Agree­
ment tobeconcluded bytheCommunity inaccordance with therequirements laid down
bytheCourt ofJustice inOpinion 1/76given on26April 1977 ;
Whereas tothat end itisneoessary toamend theabove-mentioned directives
asregards thestructure andrules ofprocedure ofthebodies inwhich is
vested thepower totake thedecisions necessary forimplementing thear­
rangements established bythesaid Agreement , ■
HAS DECIDED * •
Sole Article
Theprovisions ofthedireotives adopted on28December .1972 are
replaced bythefollowing :
1.Composition ofthemanaging body
Themanaging body shall consist offifteen members ,appointed
bythesupervisory body after consultation with thenational trade
organizations representing inland waterway carriers .Inappointing the
members thesupervisory body shall have regard totheneed forthe
composition ofthemanaging body tobeasbroadly representative as
possible ofthechief categories ofinland waterway carrier andofthe
regions inwhich thesystem isapplicable *
yorapositilon anddecision-making procedure "ofthesupervisory body
Thesupervisory body shall consist ofmembers appointed inapersonal
capacity ,eight bytheEuropean Economio Community andonebySwitzerland ;
arepresentative oftheCommission shall aotasChairman jsecretarial servi­
cesshall beprovided bytheCommission *

Membersofthesupervisory "bodyshall"beoompletelyindependentof
anynationalallegianceintheperformanceoftheirdutiesinthegeneral
interestofthearrangementstoheestablishedandshallhaveregardtothe
objectivesofthecommontransportpolicy.
Thesupervisory bodyshallactbyasimplemajorityofvotescast.
Deoisionsonmattersofprincipleaffeotingtheworkingofthesaid-
arrangementsshallbetakenjointlybytheEuropeanEco­
nomicCommunityandSwitzerland ,whoshallalso.beempoweredtoadopt
necessarydirectivesasabasisforthe~actionsofthe
supervisory body*
TheChairmanofthesupervisory bodyshallfurthermore havearight
ofappeal,havingsuspensoryeffect,totheCommunityandSwitzerlandagainst
deoisionsofthatbody*
DoneatBrussels,
FortheCouncil,
ThePresident