15. 3. 75 Official  Journal  of the European  Communities No C 62/23 
Commission,  and  particularly  those  for  eight 
varieties: 
— Hallertauer, 
— Record, 
— Hersbrucker, 
— Huller  Bitterer, 
— Spalter, 
— Tettnanger, 
— Goldings, 
— Strisselspalt. The Committee  takes  note  of the  different  comments 
on the  amounts  of aid  to be granted  for  the  various 
varieties.  It feels  that  these  comments  deserve  to be 
examined  with  the utmost  care  but does  not  intend  to 
take  a stand  thereon,  inter  alia  because  the 
Commission  is proposing  to review  the basic  rules  for 
the hops  sector.  Pending  the  review,  and  in the  light 
of the  comments  made  in  paragraph  5,  the 
Committee  asks  the Commission  to satisfy  itself  that 
the present  proposals  will  in  practice  provide 
Community  hop  growers  with  the  target  sum  of 
3 200  u.a.  per hectare  for the 1973  harvest. 
Done  at Brussels,  30 January  1975. 
The Chairman 
of the Economic  and  Social  Committee 
Henri  CANONGE 
Opinion  on the  communication  to the  Council  on the  problems  of the  pulp,  paper  and 
paperboard  industry 
The text  referred  to the Committee  has  not  been  published  in the Official  Journal  of the 
European  Communities. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 10 April  1974,  the  Council  referred  the  abovementioned  communication  to the 
Economic  and  Social  Committee  under  Article  198  of the  Treaty  establishing  the 
European  Economic  Community. 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  drew  up its Opinion  at its 127th  plenary  session, 
held  in Brussels  on 29 and  30 January  1975. 
The Opinion  is published  below: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the referral  on 11 April  1974  by the 
Council  of  the  European  Communities,  of  the 
communication  to the  Council  on the  problems  of 
the pulp,  paper  and  paperboard  industry; 
Having  regard  to  Article  198  of  the  Treaty 
establishing  the European  Economic  Community; Having  regard  to the decision  taken  by its Bureau  on 
2 May  1974,  instructing  the  Section  for  Industry, 
Commerce,  Crafts  and  Services  to draw  up  an 
Opinion  and  a report  on the matter; 
Having  regard  to the  Opinion  adopted  on 8 January 
1975  by the  Section  for  Industry,  Commerce,  Crafts 
and Services; 
No C 62/24 Official  Journal  of the European  Communities 15.3.75 
Having  regard  to  the  report  submitted  by  the 
Rapporteur,  Mr Masprone; 
Having  regard  to the  discussions  at its 127th  plenary 
session  held  on 29 and  30 January  1975  (meeting  of 
30 January  1975), 
HAS  ADOPTED  THE  FOLLOWING  OPINION 
by a unanimous  vote: 
The Committee  approves  the  Commission's 
memorandum,  subject  to the following  comments: 
1. General  comments 
1.1. The  Commission's  memorandum  is to be seen 
as a contribution  towards  the  formidable  task  of 
equipping  the  Community  with  an overall  industrial 
policy,  a policy  consisting  not  of mandatory  plans 
but of a set  of measures  which  will  prepare  the 
ground  for  adaptation  and  development  of the  Com-
munity's  industrial  structure.  Such  a policy  will  aim 
to achieve  not  only  the  final  objectives  set out  in 
Article  2 of the  EEC  Treaty,  but  also  increasing 
liberalization  of world  trade  in order,  as the Council 
of the  European  Communities  stated  in its resolution 
of 13  December  1971,  to ensure  a rise  in living 
standards. 
1.2. There  is no mention  of a common  industrial 
policy  in the EEC  Treaty,  but  such  a policy  is implicit 
in the  Community's  very  nature.  As  a result  the 
Community  needs  to create  an overall  framework 
which  furthers  productive  activity,  and  identify  the 
industries  which,  in view  of the  world  context, 
should  be supported  or developed.  It should  not  be 
overlooked  that  this  is a means  of promoting 
economic  policy  measures  in general,  and  commercial 
policy  measures  in particular,  in pursuit  of the  — 
admittedly  abstract  — aim  of specialization  and  free 
world  trade  in  conditions  of  healthy,  fair 
competition. 
1.3. The  Committee  is pleased  to see  that  the 
Commission's  document  is a step  towards  the 
formulation  of an  industrial  policy  for  a specific 
sector.  Following  shipbuilding  and  data  processing, 
attention  is now  turned  to the  paper  industry  owing 
to its importance  in the world  today  — for  instance, 
from  the  viewpoint  of information  and  culture  — 
and in view  of the  difficulties  with  which  it is confronted.  It should  be borne  in mind  that  the 
Community's  large  trade  deficit  in the  pulp,  paper 
and paperboard  sector  can  be contained,  it not  cut 
back,  by appropriate  action  to stimulate  the  paper 
industry  — which  has  already  given  proof  of a 
certain  dynamism.  The  paper  industry  and  the 
economic  and  social  groups  concerned  must  be 
consulted  before  drawing  up such  a policy,  which 
must  not  run  counter  to the  normal  market  forces. 
Nevertheless  the social  side  must  not  be neglected.  In 
particular,  stimulus  action  should  be  taken  to 
promote  both  employment  and  financial 
contributions  from  the  Social  Fund,  which  have 
already  been  accepted  in the case  of shipbuilding. 
1.4. It  is a pity,  however,  that  the  Commission's 
initiative  comes  such  a long  time  after  it had 
expressed  an  intention  to  act.  Nevertheless,  the 
memorandum  will  have,  if nothing  else,  the merit  of 
attracting  the  attention  of the  political  bodies  and 
public  opinion  in the whole  Community. 
2. Specific  comments 
2.1. Evaluation  of  the present  situation  and  of trends 
in the industry 
2.1.1.  The  Committee  broadly  concurs  with  the 
statement  in the  Commission's  memorandum  that 
approximately  42 % of the  paper  and  paperboard 
used  in the  Community  is made  from  indigenous 
raw materials  and  approximately  58 % from  raw 
materials  and  semi-manufactured  and  finished 
products  imported  from  non-member  countries. 
2.1.2.  This  dependence  on non-member  countries 
becomes  worrying  when  seen  in the  light  of the 
special  nature  of the  paper  and  paperboard  industry 
and its outlook,  namely,  constantly  rising  demand 
and a probable  relative  world  shortage  of pulpwood 
in the  eighties  or thereabouts.  In itself  increasing 
demand  is to be welcomed  since  it makes  for  a 
dynamic  market.  The  main  constraint  is the  unsatis-
factory  degree  of vertical  integration  in subsectors 
where  it is particularly  necessary  due  to  the 
inadequacy  and  inefficient  use  of raw  materials.  So 
this is the  point  on which  the  Community  has  to 
bring  its efforts  to bear. 
2.1.3.  The  Committee  points  to the  necessity  for 
existing  woodland  areas  to be better  managed  and 
for practical  measures  to encourage  reafforestation 
which  take  due  account  of the objective  need  to look 
to woodland,  not  only  for agricultural  and  ecological 
15.3.75 Official  Journal  of the European  Communities No C 62/25 
ends,  but  also  as a source  of raw  material  for 
industry.  This  is the attitude  of the draft  Directive  on 
forestry  measures,  although  in the main  it deals  with 
other  issues  such  as  soil  conservation,  the 
environment  and  agrarian  structure.  The  Committee 
deplores  the  fact  that  a whole  series  of draft 
Directives  on  forestry  measures,  which  the 
Commission  submitted  in 1968,  have  still  to be 
approved  by the Council. 
2.1.4.  In  addition,  the  Committee  points  out  that 
certain  Community  funds,  such  as the  EAGGF, 
whose  resources  are normally  earmarked  for specific 
purposes,  can be used  to further  industrial  objectives. 
2.1.5.  The  Committee  endorses  the  Commission's 
recommendation  that  the  recovery  and  recycling  of 
waste  paper  should  be stepped  up considerably.  In 
particular,  steps  should  be taken  to maintain  stocks, 
so as to reduce  fluctuations  in supply  and  demand, 
and to promote  research  into  the  most  advanced 
techniques.  This  activity  should  not  be obstructed  by 
existing  or future  national  rules  which  unjustifiably 
restrict  the  widespread  use  of  recycled  paper, 
although  public  health  requirements  must  be taken 
into account. on the  equilibrium  of companies,  particularly  as 
regards  commercial  policy. 
2.2.3.  The  Committee  feels  that  the  practical 
implications  of the 'polluter  pays'  principle  should  be 
subjected  to an in-depth  examination.  It also  feels  — 
as the Committee  recommended  in its Opinion  on the 
Draft  recommendation  by the Council  to the Member 
States  regarding  cost  allocations  and  action  by public 
authorities  on environmental  matters  — that  certain 
anti-pollution  rules  should  be  laid  down  at 
international  level,  and  not  only  in the  Community, 
so as not  to put  the  Community's  industry  at a 
disadvantage  in competition  with  its counterpart  in 
non-member  countries. 
2.2.4.  The  Committee  reiterates  here  and  now  that 
a stand  should  be taken  on  the  consequences  of 
applying  the  'polluter  pays'  principle  when  practical 
proposals  on pollution  by the  paper  industry  are 
submitted  by the  Commission  to the  Council  under 
the action  programme  on  the  environment.  The 
paper  industry  has  special  characteristics  all of its 
own which  make  it hard  to call  for rigid  application 
of the 'polluter  pays'  principle. 
2.1.6.  On  a general  level  the Committee  feels  that 
public  opinion  must  be woken  up to the vital  need  to 
conserve  resources  and  use  lower-grade  materials  for 
some  applications.  On  the  other  hand,  products 
which  cause  pollution  must  not  be used  instead  of 
paper. 
2.2. Policy  on the paper  industry,  and  the protection 
of the environment 
2.2.1.  The  Community  has,  of course,  been  active 
on the  environmental  preservation  front  for  some 
time.  The  Committee  considers  that  the restructuring 
of an industry  affords  an excellent  opportunity  to 
induce  economic  operations  to decide  one  way  rather 
than  another  in the interests  of the  environment.  But 
action  of this  sort  must  take  account  of all sides  of 
the problem  and,  in particular,  of the  cost  of the 
requisite  counter-pollution  techniques. 
2.2.2.  As  the  Commission's  document  clearly 
shows,  the  cost  of  eliminating  pollution  is 
particularly  high  and  will  have  a considerable  impact 2.3. Structural  reform  of the  industry  —  the  aids 
issue 
2.3.1.  The  analytical  study  of the  paper  industry 
and of the probable  future  trends  shows  up the need 
for structural  reform  in order  to  improve  its 
international  competitiveness.  The  Commission 
memorandum  states  that  the  measures  taken  on the 
supply  and  pollution  side  can  only  be effective  if the 
Community  retains  an industry  capable  of processing 
available  raw  materials  at competitive  costs. 
2.3.2.  The  Commission  adds  that  this  is not  the 
case with  the Community's  pulp  industry  — its plant 
is neither  sufficiently  up-to-date,  nor  large  enough, 
nor of such  a geographical  location  as to make  it 
competitive. 
2.3.3.  Consequently,  the Commission  suggests  that 
the Scandinavian  pattern  should  be reproduced  as far 
as is possible  in the  Member  States.  Reafforestation 
would  be  the  first  stage,  followed  by  the 
establishment  near  the reafforested  areas  of cellulose 
plant  which  has  an  optimum  capacity  (currently 
No C 62/26 Official  Journal  of the  European  Communities 15.3.75 
reckoned  to be around  250  000 to 300  000 metric 
tons per annum)  and  can  thus  bear  the heavy  costs  of 
counter-pollution  measures. 
2.3.4.  The  Committee  considers  that  structural 
reform  cannot  be carried  out without  taking  account 
of the  need  for  appropriate  —  and  doubtless 
diversified  — integration  of the paper  industry  with 
the pulp  industry  and  vice  versa.  Structural  reform 
must  therefore  encourage  the establishment  of pulp 
plant  next  to existing  paper  mills  and  vice  versa. 
Consequently,  aids  will  also  have  to be granted  to 
encourage  vertical  integration  projects. 
2.3.5.  The  Committee  considers  that  the 
Commission's  line  of thought  is self-consistent,  but 
that the difficulties  must  not be overlooked: 
— such  plans  are  long  term.  Consequently,  large 
cellulose  plants  can  only  be  set  up  after 
reafforestation  work  has  come  to fruition  — that 
is to say  after  a time-lag  of between  15 and  20 
years  in the case  of deciduous  trees  and  30 years 
or more  in the case  of coniferous  trees  (pines  and 
firs); 
— the  problem  is easier  to resolve  for  countries 
which  already  have  extensive  woodland  areas. 
Member  States  in this  position  can go ahead  more 
or less  immediately  with  implementation  of 
structural  reform  plans  for their  pulp  industry. 
2.3.6.  In  view  of: 
— the  major  differences  between  the  situations  of 
the Member  States'  paper  industries  and,  in 
particular,  between  their  possibilities  with  respect 
to the  supply  of raw  materials,  including  waste 
paper; 
— the  relevance  of a number  of issues,  such  as 
pollution,  which  should  be tackled  and  resolved 
jointly; 
— the  desirability  of using  Community  funds  to 
carry  out  the  structural  reform  of the  paper 
industry,  in order  to ensure  competition  between 
paper  manufacturers  in the  various  Member 
States; 
— the  lack  of a coherent  Community  industrial 
policy, 
the Committee  considers  that  one  solution  which 
must  not  be overlooked  — and  it is one  which  is 
advocated  in several  quarters  — is the development 
of a genuine  common  policy  entailing  the establishment  of a single  Community  fund.  When  it 
defines  the various  aspects  of such  a common  policy 
(aims,  funding,  conditions  for  the  grant  of aids, 
duration  of aids  and  so on) the Commission  will  have 
to consult  interested  socio-economic  groups  and,  in 
particular,  the  Committee.  Investment  aids  should, 
generally  speaking,  be an instrument  available  to 
undertakings  for  the  purpose  of  facilitating 
modernization  and  rationalization  programmes 
recognized  as furthering  Community  interest  in the 
shipbuilding  sector.  The  Committee  also  considers 
that there  should  be adequate  forms  of supervision, 
at Community  level,  for  Community-financed 
investment  aids. 
2.3.7.  The  Committee  would  reiterate  the  point 
already  made  in section  1.3,  namely  that  financial 
contributions  from  the  Social  Fund  should  be 
encouraged. 
2.4. Research 
2.4.1.  The  Committee  notes  that  the Commission 
intends  to organize  the coordination  of general  and 
specific  programmes  of paper  industry  research 
which  are  under  way  in the  Member  States.  The 
Committee  would  like  to be consulted  — as it 
already  has  been  on the  proposal  for  a Council 
Decision  (*) establishing  a  programme  of 
technological  research  in the textile  sector  — on the 
specific  proposals  which  the Commission  has stated  it 
may submit  under  the  general  common  research 
programme. 
2.4.2.  The  Committee  trusts  that  all  paper 
companies  will  have  untrammelled,  easy  access  to 
research  findings.  It points  out  that  the formulation 
of a research  programme  should  be simplified  by the 
fact that  research  in the paper  industry  does  not raise 
any particular  problems  in the  patents  sphere. 
Companies  already  circulate  and  exchange  research 
findings.  It would  appear,  however,  that  the  paper 
industry  fails  to spend  enough  on basic  research  and 
concentrates  on  seeking  to  improve  existing 
production  processes. 
2.4.3.  Consequently,  the  Community  should 
concentrate  its endeavours  on basic  research  in order, 
above  all,  to offset  the looming  world  shortage  of 
traditional  raw  materials.  The  Committee  was 
interested  to hear  of experimental  work  on  new 
production  techniques  which  — if they  turn  out to be 
sound  — could  lead  to considerable  savings  of raw 
materials,  energy  and  water,  and  to a cutback  in 
pollution. 
(x) OJ  No C 16, 23. 1. 1975,  p. 10. 
15.3.75 Official  Journal  of the European  Communities No C 62/27 
2.5. Commercial  policy 
2.5.1.  The  Committee  agrees  with  the Commission 
that commercial  policy  in the  paper-making  field 
must  be  flexible  enough  to  prevent  future 
negotiations  with  non-member  countries  from 
running  counter  to the  structural  reform  of the 
industry  and  to  the  re-establishment  of  stable 
Community  supplies.  Future  agreements  with  non-
member  suppliers  to the  Community,  and  with 
countries  which  have  the  potential  to  become 
suppliers  in the  near  future,  must  therefore  strike  a 
balance  between  supplies  of raw  materials  and  those 
of finished  products. 
2.5.2.  An  in-depth  study  of production  capacity  — 
taking  in potential  output  from  joint  ventures  in 
developing  countries  — and  of world  market  trends 
would  also  allow  a better  balance  to be struck 
between  supply  and  demand.  Such  an  improved balance  is essential  for  the  paper  and  paperboard 
industry,  which  requires  considerable  amounts  of 
capital  investment.  The  Community  — including 
representatives  of interested  socio-economic  groups 
— will  have  to participate  in the work  carried  out  in 
international  organizations,  such  as the FAO  and  the 
OECD,  with  a view  to assessing  what  raw  materials 
are actually  available,  determining  the  paper  and 
paperboard  consumption  trends  in the  Community, 
and — bearing  in mind  the  European  economic 
situation  — providing  any  details  on new  production 
possibilities. 
Done  at Brussels,  30 January  1975. 
The Chairman 
of the Economic  and  Social  Committee 
Henri  CANONGE 
Opinion  on the  proposal  for  a Council  Regulation  modifying  Regulation  (EEC)  No 
1107/70  relative  to aids  granted  in the field  of transport  by railway,  road  and  inland 
waterway 
The text  referred  to the Committee  was  published  in Official  Journal  of the European 
Communities  No  C 158  of 17 December  1974,  pages  19 and  20. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 3 December  1974,  the  Council  referred  the  abovementioned  proposal  to the 
Economic  and  Social  Committee  under  Article  75 of the  Treaty  establishing  the 
European  Economic  Community. 
B. OPINION  OF THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  drew  up its Opinion  at its 127th  plenary  session, 
held in Brussels  on 29 and  30 January  1975. 
The Opinion  is published  below: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to the referral  on 4 December  1974  by 
the Council  of the  European  Communities,  of the 
proposal  for  a Council  Regulation  modifying 
Regulation  (EEC)  No  1107/70  relative  to  aids 
granted  in the field  of transport  by railway,  road  and 
inland  waterway; Having  regard  to  the  Treaty  establishing  the 
European  Economic  Community,  and  in particular 
Article  75 thereof; 
Having  regard  to Council  Regulation  (EEC)  No 
1107/70  (*) of 4 June  1970  on the granting  of aids  for 
0) OJ No L 130,  15. 6. 1970,  p. 1.