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. 
No C 62/28 Official  Journal  of the European  Communities 15. 3. 75 
transport  by rail,  road  and  inland  waterway,  and  in 
particular  Article  4 thereof; 
Having  regard  to the proposal  of 18 August  1971  (1) 
for a Council  Decision  relative  to the improvement  of 
the financial  situation  of railway  undertakings  and 
the harmonization  of the rules  governing  the financial 
relations  between  these  undertakings  and  the States; 
Having  regard  to its Opinion  of 29 June  1972  (2) on 
this matter; 
Having  regard  to  Articles  46  and  47  of the 
Committee's  Rules  of Procedure  (urgency  procedure); 
Having  regard  to the decision  taken  by its Chairman 
on 10 December  1974,  in pursuance  of Article  22 of 
the Rules  of Procedure,  instructing  the  Section  for 
Transport  and  Communications  to draw  up  an 
Opinion  on the matter; 
Having  regard  to the Opinion  adopted  by the Section 
for Transport  and  Communications  at its  95th 
meeting,  held  on 10 January  1975; 
Having  regard  to the  oral  report  made  by  Mr 
Hennig; 
Having  regard  to the discussions  at its 127th  plenary 
session  held  on 29 and  30 January  1975  (meeting  of 
30 January  1975); 
Whereas  according  to Article  77 — in conjunction 
with  Article  92 — of the  Treaty  establishing  the 
European  Economic  Community,  aids  are compatible 
with  the  Treaty  'if  they  meet  the  needs  of 
coordination  of  transport  or  if they  represent 
reimbursement  for  the  discharge  of  certain 
obligations  inherent  in the  concept  of a public 
service'; 
Whereas  Regulation  (EEC)  No  1107/70,  and  in 
particular  Article  3 thereof,  defines  more  precisely  the 
field  of application  of the aforementioned  Article  77 
of the  Treaty  and  specifies  the aids  to which  the 
notification  procedure  provided  for in Article  93 (3) 
of the Treaty  applies; 
Whereas  Article  4 of the said  Regulation  provides  for 
an exception  to this  field  of application  by stipulating 
that the  provisions  of Article  3 (and  thus  also  of 
Article  93  (3)  of the  Treaty)  do  not  apply  to 
payments  by states  and  public  authorities  to railway 
undertakings  made  by  reason  of any  failure  to 
achieve  harmonization,  as laid  down  in Article  8 of Council  Decision  No  765/271/EEC  (3) of 13 May 
1965,  of the  rules  governing  the  financial  relations 
between  railway  undertakings  and  states,  the purpose 
of such  harmonization  being  to  make  those 
undertakings  financially  autonomous;  whereas  this 
exception  remains  valid  until  the entry  into  force  of 
the relevant  Community  rules; 
Whereas  Article  5 (2)  of Regulation  (EEC)  No 
1107/70  explicitly  states  that,  in view  of their  special 
nature,  these  types  of aids  'shall  be exempt  from  the 
procedure  provided  for  in Article  93 (3)  of the 
Treaty';  and  whereas  provision  is made  for  a 
simplified  notification  procedure  under  which  'details 
of such  aids  shall  be  communicated  to  the 
Commission  in the form  of estimates  at the beginning 
of each  year  and  subsequently  in the  form  of a 
report,  after  the end  of the financial  year'; 
Whereas  the Community  rules  referred  to in the third 
recital  above  have  been  basically  accepted  — 
although  not yet formally  enacted  by the Council  — 
under  the  Decision  mentioned  in the  Commission 
proposal,  which  Decision  the  Council  approved  in 
principle  on  11  December  1974;  whereas  it is 
therefore  to be expected  that  Article  4 of Regulation 
(EEC)  No  1107/70,  and  consequently  the  simplified 
procedure  laid  down  in Article  5 (2)  of that 
Regulation,  will  soon  no longer  be applicable  to 
national  railway  undertakings,  unless  the  Council 
decides  otherwise  in a Regulation; 
Whereas  provision  is made  in Articles  5 and  14 of the 
Decision  approved  in principle  on 11 December  1974 
for certain  aids  which  may  continue  to be granted  to 
national  railway  undertakings;  and  whereas  such  aids 
are to take  the form  of investment  aid,  interest-free 
or interest-bearing  loans,  guarantees  and,  during  a 
transitional  period,  subsidies  to  ensure  budget 
equilibrium; 
Whereas  since  the Commission  considers  that  these 
aids are comparable  to those  hitherto  granted  under 
Article  4 of Regulation  (EEC)  No  1107/70,  it is 
proposed  that  the  simplified  notification  procedure 
be applicable  in respect  of these  aids, 
HAS  ADOPTED  THE  FOLLOWING  OPINION 
by a unanimous  Vote: 
1. The  Committee  approves  in principle  the 
Commission's  proposal,  whose  essential  aim  is to so 
modify  Article  4 of Regulation  (EEC)  No  1107/70 
that the  simplified  notification  procedure  will  also 
(*) OJ No C 106,  23. 10. 1971,  p. 42. 
(2) OJ  No C 89, 23. 8. 1972,  p. 1. (3) OJ  No 88, 24. 5. 1965,  p. 1500/65. 
15. 3. 75 Official  Journal  of the European  Communities No C 62/29 
apply  during  a transitional  period  to the aids  referred 
to above  (Articles  5 and  14 of the  aforementioned 
Council  Decision). 
It regrets  that  the undertakings  in question  have  not 
yet achieved  financial  equilibrium. 
2. It  holds  the view  that  the Decision  approved  in 
principle  by the Council  on 11 December  1974  has a 
special  significance  in that  it makes  provision  for 
programmes  on whose  basis  railway  undertakings 
can move  step  by step  towards  financial  equilibrium 
by the earliest  possible  date.  The  Committee  expects 
that this  will  lead  to a reduction  in transport  costs  for 
the Community  at large. 
3. The  Commission  would  also  stress  that  all 
transport  undertakings  on  which  obligations  are 
imposed  in the  public  interest  must  be entitled  to 
compensation  for these  obligations. 
4. The  Committee  notes  that  under  point  1 of the 
sole Article  of the draft  Regulation  under  discussion, 
the new  rule  covers  only  state  railways  and  not those 
which  are not state-run. This  ensures  that  railways  which  are  not  state-run 
will retain  all the possibilities  afforded  them  by the 
currently  applicable  version  of  Article  4 of 
Regulation  (EEC)  No  1107/70.  This  means  in 
particular  that  states  can  continue  to pay  private 
railways  compensation  until  they  have  become 
financially  autonomous.  However,  Article  4 does  not 
specify  the nature  and  extent  of these  aids. 
5. Finally,  the  Committee  considers  it highly 
regrettable  that  it had  to draft  this  Opinion  without 
having  the  final  version  of the  Decision  reached  in 
principle  by the Council  on 11 December  1974. 
It is proceeding  on the assumption  that  the Council, 
in keeping  with  its  statement  of intent  of 11 
December  1974,  will  shortly  adopt  the  present 
proposal;  it is aware  that  non-adoption  will 
invalidate  the basis  on which  this  Opinion  was  drawn 
up. 
Done  at Brussels,  30 January  1975. 
The Chairman 
of the Economic  and  Social  Committee 
Henri  CANONGE 
Opinion  on the proposal  for a Council  Directive  on the approximation  of the laws  of 
the Member  States  relating  to the  braking  devices  of wheeled  agricultural  or forestry 
tractors 
The text  referred  to the Committee  was  published  in Official  Journal  of the European 
Communities  No  C 104  of 13 September  1974,  pages  17 to 30. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 8 July  1974,  the Council  referred  the abovementioned  proposal  to the  Economic 
and Social  Committee  under  Article  100  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: