No C 37/8 Official  Journal  of the  European  Communities 1. 4. 74 
C. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
At its 115th  Plenary  Session  held  in Strasbourg  on 29 November  1973,  the Committee 
adopted  unanimously  by the  members  present  or represented,  its Opinion  on the  text 
referred  to under  B. 
The text  of the Opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the request  by the President  of the 
Council  of  the  European  Communities  on 
24 September  1973  for an Opinion  on the  proposal 
for a Council  Regulation  amending  Council 
Regulation  (EEC)  No 1496/68  of 27 September  1968 
on the  definition  of the  customs  territory  of the 
Community; 
Having  regard  to  Article  198  of  the  Treaty 
establishing  the European  Economic  Community; 
Having  regard  to the  Decision  of its Bureau  on 
26 September  1973  entrusting  the  Section  for 
Industry,  Commerce,  Crafts  and  Services  with  the 
preparation  of an Opinion  and  a report  on this 
matter; 
Having  regard  to  Council  Regulation  (EEC) 
Nos 1496/68  and  2744/72  on the  definition  of the 
customs  territory  of the  Community; 
Having  regard  to the  Opinion  delivered  by  the 
Section  for  Industry,  Commerce,  Crafts  and  Services 
at its meeting  on 7 November  1973; 
Done  at Strasbourg,  29 November  1973. Having  regard  to its discussions  at its 115th  Plenary 
Session  on 29 November  1973, 
HAS  ADOPTED  THE  FOLLOWING  OPINION: 
The Economic  and  Social  Committee  approves  the 
proposal  for  a Regulation.  It notes  that  the  aim  of 
this proposal  is to extend  to 30 June  1977  the 
provisions  of Council  Regulation  (EEC)  No  2744/72 
of 19 December  1972  amending  Regulation  (EEC) 
No 1496/68  on  the  definition  of the  customs 
territory  of the Community. 
The Committee  wonders  whether  the  time  is not 
ripe for  simplifying  the  whole  definition  of the 
customs  territory  of  the  Community.  In  fact, 
maintaining  a certain  number  of particularities  that 
have  historical  roots,  and  are  moreover  perfectly 
justifiable,  gives  rise  to  difficulties  when  the 
Community  provisions  are implemented  that  are  out 
of all proportion  to the interests  these  provisions  are 
supposedly  intended  to respect. 
The Chairman 
of the Economic  and  Social  Committee 
Alfons  LAPPAS 
CONSULTATION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
on a Communication  from  the  Commission  to the  Council  on initial  implementation 
of the  guidelines  and  priorities  for a Community  Energy  Policy 
A. REQUEST  FOR  AN  OPINION 
At its 256th  meeting  held  on 24 September  1973,  the  Council  decided  to exercise  its 
option  of consulting  the Economic  and  Social  Committee  on the above  Communication. 
The request  for an Opinion  was  sent  by the President  of the Council  to the Chairman 
of the Economic  and  Social  Committee  on 25 September  1973. 
B. TEXT  WHICH  WAS  THE  SUBJECT  OF  THE  CONSULTATION 
The text  which  was  the  subject  of the  consultation  has  not  yet  been  published  in the 
Official  Journal  of the European  Communities. 
1. 4. 74 Official  Journal  of the  European  Communities No C 37/9 
C. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
At its 115th  Plenary  Session  held  in Strasbourg  on 29 November  1973,  the Committee 
adopted  its Opinion  on the  text  referred  to under  B, by 50 votes  to 18,  with  5 
abstentions  out  of the 73 members  present  or represented. 
The text  of the Opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the  provisions  of the  Treaty 
establishing  the  European  Economic  Community, 
and in particular  Articles  5, 113,  145  and  213 
thereof; 
Having  regard  to the  letter  of 25 September  1973, 
by which  the  President  of the  Council  of the 
European  Communities  requested  it to deliver  an 
Opinion  on  the  Communication  from  the 
Commission  to  the  Council  on  initial 
implementation  of the  'Guidelines  and  Priorities  for 
a Community  Energy  Policy'  and  the  six proposals 
annexed  to it; 
Having  regard  to the  Decision  of its Bureau  on 
26 September  1973,  entrusting  the Section  for Nuclear 
Questions  and  Energy  with  the  preparation  of a 
report  and  an Opinion  on the subject; 
Having  regard  to its Opinion  of 27 June  1973  on 
the proposal  for  a Council  Regulation  establishing  a 
common  system  for  imports  of hydrocarbons  from 
third  countries; 
Having  regard  to the  Opinion  delivered  by  the 
Section  for  Nuclear  Questions  and  Energy  at its 
meeting  on 9 November  1973; 
Having  regard  to  the  report  presented  by  the 
Rapporteur,  Mr Bonomi; 
Having  regard  to the discussions  at its 115th  Plenary 
Session  on 29 November  1973; 
Whereas  the  dependence  of the  Community  with 
regard  to hydrocarbon  imports  calls  for  a supply 
policy  that  guarantees  continuity  of supplies  on 
satisfactory  terms; 
Whereas  flows  of  exact  and  comprehensive 
information  to national  and  Community  public 
authorities  on  Community  hydrocarbon  supply 
conditions  are essential, 
HAS  ADOPTED  THE  FOLLOWING  OPINION: 
I. GENERAL  COMMENTS 
A general  assessment  of the  Commission's  proposals 
must  take  into  consideration  the  Communication from  the  Commission  to the  Council  on  initial 
implementation  of the  'Guidelines  and  Priorities  for 
a Community  Energy  Policy  together  with  the 
document  which  formed  the  basis  of  this 
communication,  on which  the  Economic  and  Social 
Committee  has  not  yet  taken  a specific  stand,  and 
the conclusions  reached  by the Council  of Ministers 
on 22 May  1973. 
At this  meeting,  the  Council's  only  statement  on 
hydrocarbons  was  that  'the  guidelines  and  priorities' 
are in broad  outline  a suitable  basis  for a discussion 
of Community  measures  to ensure  security  of oil 
supplies.  The  Council  also  specified  the  subjects  on 
which  it expected  proposals  from  the  Commission, 
subjects  including,  in addition  to the  matters  dealt 
with  in  the  Communication  currently  under 
discussion,  the  promotion  of the  use  of nuclear 
energy,  the  share  of coal  in future  Community 
supplies,  the  use  and  development  of natural  gas, 
the effect  of environmental  conservation  measures 
on energy  policy,  the rational  use  of energy,  and  the 
undertaking  of scientific  and  technical  work  to 
promote  new  sources  of energy. 
The Committee  would  underline  the  importance  of 
the studies  relating  to this  second  group  of subjects 
which  aim  at improving  the  Community's  medium-
and long-term  energy  situation  through  measures 
that would  give  the  Community  itself  wider  scope 
for autonomous  decisions  than  the  measures  in 
respect  of hydrocarbons  give  it at present. 
The Commission  Communication  which  is being 
discussed  at present  deals,  in effect,  with  the  three 
subjects  which  were  set  out  in the  document  on 
'guidelines  and  priorities'  which  has  been  discussed 
by the  Council.  These  three  subjects  are:  relations 
between  the  Community  and  other  energy-importing 
countries,  relations  with  energy-exporting  countries, 
and the organization  of a Community  oil market. 
The Committee  agrees  that  these  were,  in fact,  the 
problems  facing  the  Community  in its search  for 
'secure  long-term  supplies  on  satisfactory  terms' 
when  the state  of the oil market  before  the events  of 
No C 37/10 Official  Journal  of the  European  Communities 1. 4. 74 
October  was  such  that  supply  no longer  exceeded 
demand,  prices  of crude  oil  and  refined  products 
were  rising  and  the  pattern  of relations  between 
producing  countries  and  companies  supplying  the 
Community  was  undergoing  profound  changes. 
The Community  must  make  an effort  to endeavour 
to find  solutions  to these  problems  which  are 
tailored  as closely  as possible  to its vital  interests  as 
a large  oil-consuming  area  whose  petroleum  is 
produced  elsewhere  and  preponderantly  by 
companies  which  are outside  its economic  system. 
The Commission  states  that  these  three  problems 
cannot  be tackled  separately  from  one  another  for 
'reasons  of politics,  logic,  and  effectiveness'.  This 
rules  out  the  possibility  of ranking  these  problems 
and thus  establishing  an order  of priority  for dealing 
with  them,  according  to their  relative  importance. 
Without,  however,  entirely  rebutting  this  approach, 
the Committee  is of the  view  that  a greater  degree 
of nuance  is possible. 
As far  as  pursuing  Community  objectives  is 
concerned,  it appears,  in fact,  that  agreements 
between  consumer  countries  will  have  less 
importance  than  those  between  the  Community  and 
producing  countries,  since  in the situation  which  has 
come  about  in recent  years,  it is these  countries 
which  determine  the  conditions  under  which  oil is 
produced  and  sold,  as well  as the  position  of the 
producer  companies  and  the  importing  countries. 
Furthermore  the  organization  of a domestic  market 
is merely  an instrument  for  implementing  an oil 
policy  within  which  supply  policy  is of paramount 
importance,  since  it must  ensure  that  demand  is met. 
For a consumer  area  largely  dependent  on imports, 
relations  with  producing  countries  and  oil 
companies  are the very  backbone  of a supply  policy. 
The Committee  notes  that  the  Communication 
under  consideration  does  not  represent  a substantial 
advance  on the  previous  document  as far  as the 
problems  raised  by  Community  relations  with 
consuming  and  producing  countries  are  concerned. 
It recognizes,  however,  that  the  politico-diplomatic 
nature  of any  action  which  could  theoretically  be 
taken  in these  two  areas,  makes  it difficult  to specify 
concrete  substances  and  procedures  for  such  action, 
especially  in the  absence  of clear  political  directives 
from  the  Council.  In this  situation,  the  Committee 
must  confine  itself  to emphasizing  the  indubitable 
importance  of the  guidelines  even  though  they  have only  been  given  in rough  outline,  and  to hoping  that 
they can  be implemented  in a concrete  manner  and 
with  the  urgency  required,  in view  of the  continuous 
and rapid  development  of the situation. 
The events  of October  and  their  repercussions  on 
the oil world  make  even  more  pressing  the  need  to 
formulate  a real  common  energy  policy  giving  rise 
to measures  allowing  the diversification  of supply  to 
be improved  and  dependence  on oil to be reduced. 
As regards  the  third  section  of the  Commission's 
proposals,  organization  of the  Community  market, 
the Committee  broadly  agrees  with  the 
Commission's  standpoint,  which  is to put  the  accent 
on security  of supplies,  a question  that  merits  closer 
attention  than  the  question  of competition  as things 
stand  at present.  The  objectives  of the  concrete 
measures  proposed  are  adequate  flows  of 
information,  closer  cooperation  between  the 
Member  States  and  oil  companies,  and  the 
implementation  of a common  system  for  importing 
and exporting  hydrocarbons. 
The six proposals  for  regulations  and  decisions  will 
be examined  in detail  in the 'specific  comments'. 
Firstly,  the Committee  considers  that  these  measures 
create  a framework  for the  actions  directed  towards 
obtaining  better  knowledge  of the  conditions  on the 
Community  market,  together  with  the  cooperation 
procedure  aimed  at ensuring  coherent  action  by the 
Member  States  and  oil companies  and  thus,  as the 
Commission  says,  'progressively  and  pragmatically 
leading  to the  crystallization  of concepts  on  the 
basis  of which  measures  for  the  realization  of a 
Community  energy  policy  can  be evolved'. 
This  framework  of rules  is, however,  clearly  not 
enough  to define  the  policy  from  which  specific 
actions  would  have  to  flow.  It lacks  a basic 
component  — the  new  relations  to be established 
with  exporting  countries,  relations  which  could 
affect  companies  producing  crude  oil and  companies 
operating  in the  Community  market  in down-stream 
stages.  As  long  as  this  framework  remains 
incomplete  in the  political  and  legislative  spheres, 
interpretation  of the  consequences  of situations  on 
the basis  of information  collected  and  application  of 
the rules  of  commercial  policy  will  remain 
problematic  and  ineffective.  Especially  with  respect 
to imports,  transition  from  the supervision  system  to 
Community  safeguards  could  be  difficult,  if not 
impossible  in the absence  of supply  policy  criteria. 
1. 4. 74 Official  Journal  of the  European  Communities No C 37/11 
The Committee  believes,  above  all  "that  attention 
must  be drawn  primarily  to the  need  for  an overall 
conception  of the question  of security  of supply. 
Security  of supply  under  the  present  conditions  on 
the oil and  energy  market,  which  will  prevail  for  a 
long  time,  calls  for  a coherent  corpus  of political, 
industrial  and  regulatory  measures,  without  which 
the Community  would  have  no real  possibilities  of 
manoeuvre.  The  Committee  doubts  whether  the 
common  import  procedure  can  form,  as  the 
Commission  says,  'the  basis  for  instituting  a 
Community  energy  policy,  if accompanied  by 
appropriate  flows  of  information  to  the  public 
authorities  in the  Community,  and  by  adequate 
communication  among  those  public  authorities  and 
between  them  and  the  oil companies'. 
II. SPECIFIC  COMMENTS  ON  THE 
COMMUNICATION  TO  THE  COUNCIL 
1. Relations  with  other  energy-importing  countries 
The Committee  agrees  with  the  Commission  that  in 
order  to  have  supplies  on  satisfactory  terms, 
importing  countries  must  realize  that  a race  to buy 
up available  quantities  is likely  to  bring  about 
additional  price  rises. 
To this  end,  it does  not  seem  sufficient,  as the 
Commission  proposes,  for  the  countries  concerned 
to agree  on a definition  of 'overbidding'  and  specify 
the types  of  practice  or  conduct  which  could 
jeopardize  the  stability  of the  market,  even  if the 
establishment  of 'price  indices'  would  provide  useful 
data  for  ascertaining  whether  overbidding  exists. 
From  the  viewpoint  of Community  interests  and, 
given  the  present  state  of the  market,  the  Committee 
considers  that  instruments  intended  to prevent  this 
overbidding  would  not  be  feasible  or permissible 
without  knowledge  of who  is doing  the  overbidding, 
his reasons  and  the  quantities  involved. 
The Committee  considers,  in  essence,  that 
overbidding  is caused  by demand  exceeding  supply, 
and even  just  by  the  belief  that  this  is so.  This 
phenomenon  will  be difficult  to eradicate  without 
removing  its cause  or without  a widespread  policy 
of strict  marked  regulation,  which  is difficult  to 
imagine. 
2. Relations  with  energy-exporting  countries 
The Communication  from  the  Commission  refers  in 
this respect  to the  problem  of developing  relations with  energy  exporting  countries.  It is clear  that  the 
Community  has  every  interest  in ensuring  that  its 
relations  with  these  countries  are  most  suited  to 
guaranteeing  stability  of  energy  supplies  to  the 
Community.  The  Committee  considers  however, 
that,  according  to  the  terms  in  which  the 
Commission  defines  its relations,  it has  mainly  the 
oil-supplying  countries  in mind. 
According  to  the  'guidelines  and  priorities',  the 
concept  underlying  these  relations  is  that  the 
security  of hydrocarbon  supplies  to the  Community 
would  be increased  by creating  a 'climate  of mutual 
trust'  between  the  Community  and  producing 
countries  by  strengthening  the  links  of matching 
economic  interest. 
Thus,  the  Commission  accepts  the  need  for  a 
connection  between  diversified  economic 
development  of producer  countries  and  stability  of 
supplies  made  by  them  to  consumer  countries 
which  has  already  been  postulated  elsewhere,  inter 
alia by  OPEC.  The  Committee  considers  that  the 
present  proposals  are  not  a significant  step  forward 
towards  implementation  of  the  above  general 
principle  or even  towards  examination  in greater 
depth  of the  feasibility  and  concrete  substance  of 
such  a complex  and  ambitious  objective. 
The Commission  suggests: 
(a) surveying  the  possibilities  open  to national  or 
Community  public  authorities  and  private 
industry  for  cooperation  with  exporting 
countries; 
(b) meetings  between  business  interests  in  the 
Community  and  energy  exporting  countries; 
(c) instituting  exploratory  talks  with  exporting 
countries,  initially  with  those  already  displaying 
an interest  in the  matter,  and,  secondly,  where 
appropriate  with  other  countries,  in order  to 
establish  contractual  relations  for  commercial 
and economic  cooperation. 
These  suggestions  are  presented  in such  a way  as to 
bring  out  the  role  that  would  devolve  on  the 
Community  in  the  economic  development  of 
producing  countries.  They  do  not,  however, 
establish  any  link  with  the  guarantee  the 
Community  might  obtain  on hydrocarbon  supplies. 
While  it is true  that  the  Commission  intends  to 
'examine  the  possibilities  of establishing  contractual 
relations  aimed  at the  development  of commercial 
and economic  cooperation  between  these  countries 
and the  Community',  it would  have  still  been 
appropriate  if, in its communication  to the  Council, 
No C 37/12 Official  Journal  of the  European  Communities 1. 4. 74 
the Commission  had  stressed  more  than  in fact  it 
did in 'Guidelines  and  Priorities'  the  complementary 
nature  of the  interests  of the  Community,  a big  oil 
and gas  importer,  on the  one  hand,  and  the  interest 
producing  countries  have  in  developing  their 
economies  on the other. 
At all events,  the  extreme  complexity  of the  subject 
does  not  permit  the Economic  and  Social  Committee 
to deal  exhaustively  with  the different  aspects  of this 
problem  in an opinion.  Nevertheless,  in view  of the 
fact that  the  Council  will  have  to pronounce  on the 
Communication  from  the  Commission,  and 
probably  also  on a request  from  the Commission  for 
a mandate  to initiate  contacts  with  the  countries 
involved,  the  Committee  considers  that  it must  put 
forward  at least  a few  limited,  outline  considerations: 
— whether  or not  a 'climate  of mutual  trust'  can 
come  from  more  intensive  economic  cooperation 
without  the  scale  of Community  action  being 
commensurate  with  the  problems  to be resolved 
in accordance  with  the  interests  and  aspirations 
of the  producing  countries,  has  still  to  be 
proved; 
— in order  for this  to come  about  with  prospects  of 
success  on the  scale  required  — that  is, with 
respect  to the  principal  countries  supplying  the 
Community  — it would  be necessary  to satisfy 
two conditions  which  are somewhat  incompatible 
with  the  present  and  foreseeable  situation  in the 
Community: 
(i) there  would  have  to be a real  Community 
policy,  promoted  on a large  scale  with  the 
joint  support  of all the Member  States; 
(ii) while  succesfully  pursuing  its  'deepening', 
the Community  would  have  to resolve  the 
difficult  problems  of  industrial,  regional, 
commercial  and  external  relations  policy, 
which  would  be  created  by  a large-scale 
development  drive  in producer  countries; 
— it is to be feared  that  in reality  the  initiatives 
taken  will  be isolated,  uncoordinated  and  not 
far-reaching  enough  to have  the desired  effect; 
— new  relations  between  the  Community  and 
producing  countries  will  not  effectively  improve 
conditions  governing  supplies  to the  Community 
unless  they  have  a direct  bearing  on  oil  and 
modify  the  structure  and  operation  of  the 
international  oil  market  in such  a way  that 
consumer  countries  are  able  to participate  in the 
taking  of basic  decisions  along  with  producing 
countries  and  international  companies; — the  Commission  makes  not  the  slightest  reference 
to the  problem  of the  utilization  of the  immense 
foreign  currency  reserves  held  by the  producer 
countries,  a problem  which  is  of  great 
importance  not  only  in the  monetary  sphere,  but 
also for  cooperation  in  the  development  of 
emergent  oil-producing  countries  and 
non-producing  countries  as well  as for stability  of 
Community  oil supplies. 
The Committee  moreover  points  out  that  as far  as 
the problems  of  economic  cooperation  between 
consumer  countries  and  producing  countries,  and 
the monetary  problems  linked  with  the  increase  in 
hydrocarbon  production,  are  concerned  it has 
already  adopted  a position  in its Opinion  on  the 
Commission's  Communication  to  the  Council 
concerning  'necessary  progress  in Community  energy 
policy'. 
3. The  organization  of a Community  oil market 
With  regard  to  measures  for  organizing  the 
Community  market,  the  six proposals  fall  into  three 
groups  according  to objectives:  measures  aimed  at 
obtaining  information  on hydrocarbon  movements; 
proposals  aimed  at establishing  common  rules  for 
imports  and  exports  of hydrocarbons;  measures 
establishing  a common  consultation  procedure. 
INFORMATION 
The 'proposal  for  a Regulation  applying  Council 
Regulation  (EEC)  No  1055/72  of 18 May  1972  on 
notifying  the  Commission  of imports  of crude  oil 
and natural  gas  to petroleum  products  falling  within 
heading  Nos  27.10  and  27.11  A of the  Common 
Customs  Tariff'  covers  a gap  in information  on 
imports,  which  incidentally  the  Economic  and  Social 
Committee  already  pointed  out  in its Opinion  on the 
'proposal  for  a Council  Regulation  setting  up  a 
common  system  for  imports  of hydrocarbons  from 
third  countries'.  Thus  the  Committee  is in favour  of 
adopting  this  proposal. 
It has  no specific  comments  to make  on the  text  of 
the proposal,  since  this  is based  on  Regulation 
(EEC)  No 1055/72  and  associated  annexes  which  are 
already  in force. 
The 'proposal  for  a Council  Regulation  on 
notification  to  the  Commission  of  hydrocarbon 
exports  to third  countries'  aims  at supplementing 
knowledge  about  the  supply  situation  in  the 
Community  by notification  to the  Commission  of 
exports  of crude  petroleum,  petroleum  products  and 
natural  gas  to third  countries.  The  Commission's 
1. 4. 74 Official  Journal  of the  European  Communities No C 37/13 
request  is  justified  by  the  possibility  of  the 
availability  of products  for  internal  consumption 
being  reduced  by export  to third  countries,  under 
certain  market  conditions.  This  request  is linked 
with  the  proposal  for  a Regulation  applying 
Regulation  (EEC)  No  2603/69  to hydrocarbons  (see 
below). 
Here  also,  the  text  of the  Regulation  and  its 
associated  annexes,  reproduces,  with  the  appropriate 
changes,  the  provisions  of Regulation  (EEC)  No 
1055/72  on notifying  the Commission  of imports  of 
hydrocarbons,  which  is already  in force. 
As far as the  data  to be supplied  are  concerned,  the 
Committee  considers  that  complicated  administrative 
procedures  should  be avoided  for  both  undertakings 
and national  authorities.  In  view  of  the  small 
volume  of imports  and  exports  of refined  products 
and often  occasional  nature  of these  operations  the 
Committee  suggests  that  as far as the  estimates  for 
the following  year  are  concerned,  the  notification  to 
the Commission  should  be limited  to imports  and 
exports  in excess  of 100  000  metric  tons  per  annum. 
The Committee  further  considers  that  it would  be 
expedient  to apply  also  to exports  the  obligation  to 
notify  sulphur  content,  to which  only  imports  are 
subject. 
COMMON  HYDROCARBON  IMPORTS  AND 
EXPORTS  PROCEDURE 
(a) Comments  on  measures  concerning  exports 
As far  as exports  are  concerned,  the  Commission's 
proposals  comprise  two  measures  one  of which  is 
the 'Council  Decision  deleting  certain  products  from 
the Annex  to  Regulation  (EEC)  No  2603/69 
establishing  common  rules  for exports'.  Article  10 of 
Regulation  (EEC)  No  2603/69  states  that  the 
principle  of freedom  of export,  laid  down  in Article  1 
of the  Regulation,  does  not  apply  to products 
listed  in  the  Annex  (which  include  petroleum 
products  under  CCT  heading  Nos  27.09  and  27.10), 
until  such  a time  as the Council  introduces  common 
rules  in respect  of them. 
This  decision  is purely  technical,  since,  by deleting 
the products  listed  in the  Annex  to Regulation 
(EEC)  No  2603/69  it liberalizes  exports  of these 
products  to third  countries,  within  the  meaning  of 
Article  1 of this  Regulation,  so that  they  are covered 
by the  'Regulation  on procedures  for the application 
of Regulation  (EEC)  No  2603/69  to exports  of 
hydrocarbons  to third  countries'.  The  latter  proposal 
aims  to: 1. set  up a surveillance  system  for  the  products  in 
question  like  that  applied  to imports  within  the 
meaning  of Regulation  (EEC)  No  1025/70.  Such 
a system  is not,  however,  specified  in Regulation 
(EEC)  No 2603/69; 
2. subject  these  exports  to the  safeguard  procedures 
laid down  in Title  III of Regulation  (EEC)  No 
2603/69. 
(b) Comments  on  measures  concerning  imports 
As far  as imports  are  concerned,  the  Commission 
proposes  a 'Council  Decision  -on procedure  for  the 
application  of Regulation  (EEC)  No  1025/70  to 
hydrocarbons  from  third  countries',  which  applies 
the system  of Community  surveillance  laid  down  in 
Title  III  of  Regulation  (EEC)  No  1025/70  to 
hydrocarbons  covered  by CCT  heading  Nos  27.09, 
27.10  and  27.11. 
The application  of Regulation  (EEC)  No  1025/70  to 
hydrocarbons  was  requested  by the  Commission  in 
its proposal  for  a Regulation  submitted  to  the 
Council  on 4 October  1972. 
At its Plenary  Session  on 27 June  1973  the Economic 
and Social  Committee  expressed  an  unfavourable 
view  of this  Regulation,  which  is still  before  the 
Council. 
This  unfavourable  opinion  was  based  on the  finding 
that the Community  had  not  yet defined  a policy  for 
hydrocarbon  supplies  and  that,  for  this  reason,  it 
was not  opportune  to enshrine  the  principle  that 
hydrocarbons  should  be  imported  under  a 
liberalized  system.  The  problem  facing  the 
Committee  is to decide  whether  application  to the 
products  in question  of the  surveillance  procedure 
set out  in Title  III of Regulation  (EEC)  No  1025/70 
is enough  to change  the  Committee's  mind  and 
allow  it to recommend  simultaneous  adoption  of the 
proposal  for  a Regulation  submitted  on 4 October 
1972  and  the  Decision  which  is being  discussed  at 
present. 
There  is no  doubt  that  subjecting  imports  of 
hydrocarbons  to surveillance  means  providing  the 
Community  with  an instrument  of intervention.  A 
decision  on these  lines  would  provide  more  valid 
justification  for  extending  the  scope  of Regulation 
(EEC)  No  1025/70  to include  hydrocarbons,  as 
stability  of supply  is the explicitly  stated  aim  of this 
measure  (third  recital  of the  Decision),  and  not 
protection  of  internal  production,  which  is the 
objective  of Regulation  (EEC)  No 1025/70. 
In general,  the  Committee  reiterates  that  seeking  to 
apply  the  general  rules  of common  commercial 
policy  to the  specific  case  of hydrocarbons  is not,  in 
itself,  a valid  means  of achieving  an energy  policy 
No C 37/14 Official  Journal  of the  European  Communities 1. 4. 74 
adequate  to meet  the interests  of the  Community;  all 
the more  so,  when  one  considers  that  regulatory 
measures  of  this  type  are  of  very  doubtful 
effectiveness  in a market  which  has  lost  its elasticity 
and is unlikely  to regain  it for a long  time. 
In conclusion  if the  Council  considers  that  the 
proposal  for  a Regulation  extending  the  scope  of 
Regulation  (EEC)  No  1025/70  to  include 
hydrocarbons  ought  to  be  approved  because  a 
Decision  is made  at the  same  time  to put  imports 
under  surveillance,  the  Committee  is able  to give  its 
agreement,  while  still  maintaining  the  general 
reservation  expressed  earlier  about  the  compatibility 
of these  measures  with  Community  requirements  in 
respect  of oil supplies. 
(c) Comments  common  to  measures  relating  to 
imports  and  exports 
Except  where  the Commission  decides  otherwise,  the 
measures  proposed  by the Commission  exclude  from 
the notification  to  the  Commission  information 
collected  by Member  States  under  the  surveillance 
procedure.  This  applies  both  to imports  and  to 
exports. 
The Committee  points  out  first  of all that  the  two 
documents  differ  considerably  on this  point.  They 
ought  to be made  more  precise  and  be harmonized. 
The Committee  notes  especially  that  the  text  of 
Article  2 of the  two  documents  results  in exclusion 
from  the notification  to the  Commission  of the  only 
significant  data  obtained  under  surveillance 
procedure  which  is supplementary  as compared  with 
other  information  procedures  — i.e.  'details  of the 
sums  of money  calculated  on the  basis  of cif prices' 
for quantities  imported  (Articles  8 and  9, Regulation 
(EEC)  No  1025/70),  and  'the  fob  price  (and  not  cif) 
free-at-frontier'  for  quantities  corresponding  to 
individual  export  authorizations  (Article  1 of the 
proposal  for  a Regulation  to extend  the  scope  of the 
rules  for surveillance  to exports). 
The Committee  regards  failure  to  include  this 
information  in  the  data  which  have  to  be 
communicated  to  the  Commission  as  being 
inconsistent  with  the  Commission's  desire  to have  'a 
common  basis  for  the  evaluation  of supply  costs', 
'an extensive  knowledge  of the  normal  costs  of 
supplies'  — at least  for  crude  oil.  (Communication 
from  the  Commission  page  2, 3rd  paragraph  and 
page  6, 3rd  paragraph)  and  with  the  proposal  to 
'establish  price  indices  for the entry  of crude  oil into 
the Community'. 
The Committee  considers  that  indication  of  cif 
prices  on import  could  be an adequate  instrument not only  for achieving  the aim  specified,  but also  for 
attaining  in more  general  terms,  that  'overall  view' 
of supplies  to  the  Community  which  the 
Commission  has  referred  to  since  its 
Communication  to the  Council  on 'a first  guideline 
for a Community  energy  policy'  of 18  December 
1968,  on which  Regulation  (EEC)  No  1055/72  is 
patterned. 
In addition,  the  Committee  considers  that  to prevent 
the difference  in  national  procedures  from 
completely  invalidating  the  information  obtained 
and making  comparisons  impossible,  the  question  of 
which  particular  authorities  in the  Member  States 
should  collect  the  data  on prices  needs  to be settled 
more  clearly.  Since  the  surveillance  system  is an 
instrument  of  supply  policy  and  includes  the 
granting  of import  and  export  authorizations,  it 
seems  to be obvious  that  prices  should  be recorded 
by the  authority  responsible  for  oil  policy  rather 
than,  say Ministries  of Finance  or Foreign  Trade. 
This  is clearly  even  more  important  since  the  price 
indices,  based  on  prices  recorded  under  the 
surveillance  system,  would  have  to be used  to detect 
and combat  'overbidding'.  The  Committee  expresses 
a reservation  now  about  indices  used  in such  a way 
but refrains  from  taking  a more  specific  stand  until 
the proposals  the  Commission  may  present  on the 
subject  are known. 
CONSULTATION  PROCEDURE 
In its 'proposal  for  a Council  Regulation  relating  to 
the laying-down  of  a  common  consultation 
procedure  on Community  hydrocarbon  supplies'  the 
Commission  considers  it necessary  to implement  a 
concertation,  based  on  reciprocal  flows  of 
information  and  mutual  consultation,  between  the 
Member  States  and  the  Commission  on  the 
conditions  and  structures  governing  these  supplies. 
The Committee  notes,  however,  that  reference  is 
made  to 'concertation'  (*) in both  the Communication 
to the  Council  and  in the  recitals  of the  proposal 
being  examined,  whilst  in the  title  of this  proposal 
and in  the  articles  allusion  is made  only  to 
'consultation  between  the  Member  States  and  the 
Commission'. 
At all events  the  nature  of the  proposed  committee 
for the  supply  of hydrocarbons  is, it seems,  defined 
by Article  1,  which  provides  for  reciprocal 
consultation  between  the  Member  States  and  the 
Commission  with  the  additional  possibility  referred 
to in Article  3 of consultation  with  oil companies. 
(') In the  Communication  to the  Council  the  French 
'concertation'  is translated  as 'dialogue'. 
1. 4. 74 Official  Journal  of the  European  Communities No C 37/15 
This  consultation  should  be  extended  to  cover 
representatives  of undertakings  using  hydrocarbons, 
trade  union  organizations  and  consumer 
organizations  as well. 
The Committee  is in principle  in favour  of the 
setting-up  of a consultative  committee.  However, 
seeing  that  on the  one  hand  the  objectives  pursued 
through  concertation  differ  from  those  aimed  at 
through  consultation  and  that,  on  the  other,  the 
Commission  has  used  the  two  terms  without  clearly 
indicating  what  objective  it is  pursuing,  the 
Committee  finds  it hard  to adopt  a position  on the 
proposed  measure  as a whole.  Unable  to discern 
exactly  what  the  Commission  intends,  the 
Committee  makes  the  most  express  reservations  on 
at least  the  first  four  articles  of the  proposal  under 
discussion. 
Independently  of this  general  reservation,  the  scope 
of the  Regulation  defined  in Article  4 calls  for quite 
a number  of remarks. 
The Committee  wonders  how  it is going  to be 
possible  to bring  about  flexible  consultation  based 
on mutual  goodwill  in view  of the  nature  of the 
information  concerning  the  spheres  of consultation 
referred  to in Article  4, on the  one  hand,  and  the 
rigidity  of  the  provisions  on  consultation  with 
undertakings  on the other. 
In particular  the Committee  considers  that  the list of 
spheres  of consultation  mentioned  in Article  4 deals 
with  subjects  differing  greatly  in characteristics  and 
significance.  In short: 
— the  first  two  indents  in  fact  only  concern 
information  that  has  already  been  communicated 
to the  Commission  under  regulations  already  in 
force  or regulations  currently  being  discussed; 
— supply  prospects,  notably  as regards  geographical 
diversification,  as dealt  with  in the eighth  indent, 
are already  widely  known  from  the  available 
documentation; 
— as regards  the  technical  and  financial  capacities 
of undertakings  supplying  the  Community  with 
hydrocarbons  mentioned  in the  fifth  indent,  it 
does  not  seem  possible  that  the  information  to 
be provided  can  add  anything  to what  has 
already  been  made  public  by the  undertakings 
themselves.  Similarly,  one  can  exclude  the 
possibility  of information  referred  to in the  sixth 
indent  containing  data  that  might  jeopardize  the 
success  of undertakings,  business  negotiations  or 
be detrimental  to their  private  interests. 
As to the  undertakings  which  may  be  consulted 
within  the  meaning  of Article  3, the  Committee 
Done  at Strasbourg,  29 November  1973. points  out  that  a number  of basic  questions  still 
remain  unanswered  because  of the  vagueness  of the 
article  in question,  which  in no  way  defines  the 
characteristics  of the  undertakings  concerned.  In fact 
just what  is a small  or medium-sized  undertaking  in 
the oil sphere?  Furthermore,  why  in the  absence  of 
criteria  on  the  size  of undertakings,  will  certain 
undertakings  be  called  on  individually,  whereas 
others  will  be able  to have  themselves  represented 
collectively  by a professional  organization? 
As regards  the  utilization  of  the  information 
obtained  from  consultations,  the  Committee 
believes,  in view  of its private  nature,  that  it should 
be treated  by the  members  of the  supply  committee 
without  regard  to  the  nationality  of  the 
undertakings  consulted. 
Finally,  the  Economic  and  Social  Committee 
questions  whether  the  possibility  afforded  to the 
Commission  of imposing  fines  and  penalty  payments 
on undertakings  in pursuance  of the  provisions  of 
Article  5, is compatible  with  the  non-legal  character 
of this  supply  committee  and  can  contribute  to the 
success  of consultations,  which  are  supposed  to take 
place  in a climate  of mutual  trust.  In this  connection 
the Economic  and  Social  Committee  points  out  that 
neither  Regulation  (EEC)  No  1055/72  or 
Regulation  (EEC)  No  1056/72  provides  for  the 
application  of sanctions  to undertakings. 
This  Opinion  refers  to  proposals  which  the 
Commission  submitted  before  the  recent  political 
events  in the  Middle  East.  Thus  not  only  for  this 
reason,  but  also  for  substantive  reasons,  it does  not 
take the possible  repercussions  of these  events  on oil 
supplied  into  account.  Nevertheless  the  Committee, 
fully  aware  of the  seriousness  and  urgency  of the 
problems  facing  Europe  in the  matter  of oil supplies 
which  are  made  even  more  acute  by the  present 
crisis  which  could  have  permanent  repercussions  on 
the economies  of all the Member  States,  requests  the 
Community  authorities  to: 
— take  without  delay  at Community  level  the 
measures  necessary  to overcome  the  immediate 
difficulties; 
— adopt  a coherent  and  effective  common  energy 
policy  consisting  of  measures  designed,  in 
particular,  to  improve  the  diversification  of 
supply  and  reduce  dependence  on oil. 
Since  the  Committee  is anxious  to help  in the 
formulation  of this  policy,  it has  decided  to make  a 
study  of the  objectives  and  content  of a Community 
energy  policy  and  at the  same  time  of the  general 
situation  with  regard  to the supply  of raw  materials. 
The Chairman 
of the Economic  and  Social  Committee 
Alfons  LAPPAS 
No C 37/16 Official  Journal  of the  European  Communities 1. 4. 74 
ANNEX 
to the  Opinion  of the  Economic  and  Social  Committee 
Rejected  amendment 
The following  amendment  was  rejected  after  a vote  by roll  call  by 42 votes  in favour,  50 
against  and  4 abstentions: 
Add the  following  at the  end  of the  Opinion: 
'This  Opinion  could  not  as yet  take  account  of the  problems  which  have  arisen  due  to the 
boycott  by the  oil-producing  countries.  Although  the  Economic  and  Social  Committee  repeatedly 
urged  the  Commission  to draw  up  a common  energy  policy  in order  to guarantee  th^ 
security  of supplies  of sufficient  primary  energy,  the  Community  relied  primarily  on  the 
international  oil companies'  promises  to cover  60 °/o of energy  requirements  up to 1985  by 
means  of oil. 
However,  the  oil companies  have  largely  lost  the  power  to influence  not  only  the  quantities 
to be produced  but  also  pricing  in the  producer  countries.  Consequently,  they  are  no longer 
able  to guarantee  stable  and  reliable  supplies  of crude  oil to the  Community. 
As a result  of this  policy,  the  Member  States  will  be affected  for a long  time  to come  and  the 
jobs  of millions  of workers  will  be threatened. 
Consequently,  the  Economic  and  Social  Committee  urges  the  European  Commission  and  the 
Council  of Ministers  to create  the  conditions  for  direct  negotiations  with  the  producer 
countries  in order  to overcome  the bottleneck  in energy  supplies.  In addition,  the  Economic  and 
Social  Committee  asks  that  a Community  energy  conference  be convened  immediately  to 
formulate  concrete  proposals  for  immediate  measures  for  the  uniform  safeguarding  of energy 
in the  Community. 
Furthermore,  the  Economic  and  Social  Committee  urge#  that  efforts  towards  implementing  a 
common  energy  policy  be directed  towards  the  following  priorities: 
— coordination  of the  measures  adopted  or still  to be adopted  in connection  with  the  present 
crisis,  taking  into  account  the  provisions  of the  Treaty  of the  relevant  regulations; 
— opening-up  and  exploitation  of new  sources  of energy; 
— more  intensive  and  more  rational  utilization  of the  energy  sources  of the  Community; 
— the  setting-up  of a European  uranium  enrichment  plant,  together  with  Community 
coordination  of national  and  multinational  research  and  development  activities,  with  a view 
to achieving  better  utilization  of nuclear  energy. 
It is important  that  action  be taken  by the  public  sector  if private  initiative  is not  sufficient 
to guarantee  that  the  objectives  of the  energy  policy  will  be pursued.  This  action  should  be in 
harmony  with  the  goals  in other  fields:  regional  policy,  social  policy,  etc. 
Finally,  the  Economic  and  Social  Committee,  while  considering  the  joint  declaration  of the 
Nine  on the  situation  in the  Middle  East  to be a step  towards  the  political  unification  of 
Europe,  regret  that  the  Nine  have  not  devoted  the  same  attention  to the  attitude  of the 
multinational  oil companies,  particularly  since  the  first  supply  difficulties,  which  date  from  the 
beginning  of the  year,  were  not  connected  with  the  conflict  in the  Middle  East  but  with 
the policy  of the  companies.' 
CONSULTATION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
on a proposal  for  a Council  Regulation  supplementing  Council  Regulation  (EEC) 
No 543/69  of 25  March  1969  concerning  certain  social  legislation  relating  to road 
transport 
A. REQUEST  FOR  AN  OPINION 
At its  206th  meeting  held  on  25  and  26  September  1972,  the  Council  decided  in 
accordance  with  the  provisions  of Article  75 of the  Treaty  establishing  the  European 
Economic  Community  to consult  the  Economic  and  Social  Committee  on  the  above 
proposal  for  a Regulation.