ARCHIVES HISTORIQUES 
DE LA COMMISSION 
 
 
 
COLLECTION RELIEE DES 
DOCUMENTS "COM" 
 
 
 
 
COM (85) 551 
 
 
 
Vol. 1985/0 202 
  
 
Disclaimer  
Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the opening to the public of the historical archives of the European Econom ic 
Communit y and the European Atom ic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), t his file is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februa r 1983 über die Freigabe der historischen Archive der Europäischen  
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983,  
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003  
(ABI. L 243 v om 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit  
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5  
der genannten Verordnung freigegeben.  
COMMISSION  
OF THE
EUROPEAN COMMUNITIES
G e n e r a l  S e c r e t a r i a tC0MC85) 551 f i n a l  
Brussels, 14 O ctober 1985
'for-  official  u s e only
C om m unication from  th e  Commission to  th e  C o u n cil
Request f o r  th e  assent o f th e  C o u n cil under A r t ic le  54, second 
p a ra g ra p h , o f th e  ECSC T re a ty  to  th e  c o -fin a n c in g  o f th e  
replacem ent o f o i l - f i r e d  b o ile r s  by f iv e  c o a l- f ir e d  
b o ile r s  at th e  A y le s fo rd  Paper M ills  s it e  of 
Reed Paper & Board (UK) L td .
C0MC85) 551 f i n a l

Note to the Council
Subject :  Request for the assent of the Council under Article 54, second
paragraph, of the ECSC Treaty to the co—financing of the  
replacement of oil-fired boilers by five coal—fired boilers at  
the Aylesford Paper Mills site of Reed Paper & Board (UK) Ltd.
Amount of the loan:  £4.45 m (approximately 7.7 m ECU)
Borrower :  Reed paper & Board (UK) Ltd., (a wholly owned
subsidiary of Reed International Pic)
Description :
The company plans to embark on an energy conservation and cost-cutting  
programme as part of the planned modernisation of Aylesford Paper Mills.  
The project, which it is expected to take 18 months to complete, has  
estimated costs as follows:
£000
Boilers and auxilliary plant 3 639
Coal/ash handling plant 1 270
Mechanical, electrical and chimney installations 2 001
Civil, building and other works 1 299
Contingency and inflation allowance 700
8 909
Anticipated Savings
The current usage of oil results in an energy cost of £14.8 m which will  
be reduced to £11.2 after the investment. After allowing for additional costs  
a net saving of £3.6 m is expected per annum.
The payback period of 2VZ years therefore seems to be justified. The benefit  
of an ECSC loan with an interest rebate should encourage the company  
to carry out this rationalisation, and-will at the same time increase the market  
for Community coal.

-  2 -
Assessment ·
The Member States of the European Community have set themselves the objective  
of reducing their dependence on oil imports. The European Council of  
27 amd 28 April 1980 in Luxembourg and the Western Economic Summit of 22 and  
23 June 1980 in Venice put out very precise statements on this subject and  
expressly recommended a return to coal.
In a communication transmitted to the Council on 11 May 1981 the Commission  
examined the scope for replacing oil by coal in "other industry" (i.e. all  
branches of industry except the energy sector, the steel industry and small  
industry and crafts) and went into the problems involved.
The Commission considers that conversion to coal in "other industry" should  
be encouraged by additional measures at national and Community levels.
The project to be co-financed is in line with the general policy of the  
Community. At the same time one of its direct results will be to provide  
an additional market for ECSC coal.
The proposed investment is therefore also in line with the provisions of  
Article 54, second paragraph, of the ECSC Treaty.
This project falls within the scope of the decision of the Commission to grant  
loans at a reduced rate, of interest for investments aimed at promoting the  
consumption of Community coal (O.J. No C 343 of 31 December 1982). It is therefore  
proposed that the loan be granted with an interest rebate.