ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(73)389
Vol.1973/0061

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(73)389final
Brussels .20March 1973
AmendedDraft
DECISION(ECSC)OPTHECOMMISSION
concerningcoalandcokefortheironandsteelindustryintheCommunity
(submittedtotheCouncil "bytheCommission)
COM(73)389final

AmendedDraft
DECISION(ECSC)OFTHECOMMISSION
concerningcoalandcokefortheironandsteelindustryintheCommunity
SECTIONI
Aids"byMemberStates
Article1
TheMemberStatesareauthorizedtogranttocoalundertakings undertheir
jurisdiction whichsupplycokingcoaland"blast-furnace coketotheCommunity
ironandsteelindustryaidstofacilitateproduction,marketinginregions
farawayfromtheproductionareasandintra-Community tradefandtheconclusion
andimplementation oflong-termcontractsforsupplyandcollection *Tothisend
thefollowingaidsmaybegranted:
(a)aproductionaid,forwhichthegovernmentsshalleachyeardetermine
aratepercoalfield,whiletakingparticularaccountoftheaveragecosts
ofproductioninthatcoalfield,thepriceofcokingcoalinitsprincipal
salesareaandthelong-termsupplyconditions;
(b)asalesaidapplyingtodeliveriestoareasremotefromthecoalfieldor
effected "bywayofintra-Community trade.Therateofanysuchaidmay
notexceed3u.a.permetrictonofcokingcoalinthecaseofdeliveries
toinstallations whichcanhesupplieddirectviamaritimetransportand
1.60u.a.permetriotoninallothercases.Theseratesshallhereduced
to2.60and1.40u.a.respectivelyforthesixthyear,2.30and1.20u.a.
respectively fortheseventhyearand2and1u.a.respectively forthe
eighthyearofthetermoftheDecision.Theselevelsaredeterminedon
thehasisoftheratesapplicableforthefirstyearofapplication,without
prejudicetotheprovisionsofArtiole10.Noscaleadoptedbyagovernment
shallintroduoeanyelementofdiscrimination intotheaidsrelatingto
thedeliveriesmadebythecoalundertakings .

Article2 ■ ■ •
1#WhereaMemberStatemakesuseofitsoptionunderArticle1,the
followingrulesshallapply:
(a)theaidsshall"bepaidtothecoking-coalproducerundertakingsin
respectoftheirdisposalsoftheirowncoal:
(b)theaidsmaybepaidonlywherethecoalisusedforcokingandthe
cokeinquestionisactuallyconsumedintheblastfurnacesofthe
Communityironandsteelindustry;
#
(c)theaidsmaybepaid'cnlywheredeliveriesofcokingcoaland
blast-furnace cokearemadeunderalong-termcontract.
2.TheproductionaidsreferredtoinArticlel(a)ofthisDecisionmay
bepaidonlyaftertheratesthereofhavebeenauthorizedbytheCommission
Theauthorization shallbegivenbytheCommissionwithdueregardtothe
criteriareferredtoinArticle1(a).ForthispurposeMemberStates
shall,by30Septemberofeachyear,submittheirapplications forthe
followingcalendaryear,togetherwithsupportingdocuments.The
Commissionshallgiveitsrulingwithintwomonthsafterreceiptofthe
application .
3.ThesalesaidreferredtoinArticle1(b)maybegrantedonlyifit
passedonintheformofpricerebatetothepurchaserofcokingcoalor
blast-furnace coke.Whenacoalundertaking passestheproductionaidon
tohisbuyers,thisshallnotgiverisetodiscrimination betweenthe
variouslong-termcontractstobeperformedbythatundertaking.
SECTIONII
Pricinc;rules-•
Article3
1.Coalundertakings areauthorized,wherenecessary,tograntrebates
ontheirlistprices,fordisposalsofcokingcoalandblast-furnace coke
fortheCommunityironandsteelindustryunderlong-termcontract,even

wherethereisnoactualcompetition fromcoalorcokefromnon-member
countriesatthepointofconsumption.
2.Therebatesallowedunder(l)aboveshallnotcausethedelivered
pricesofCommunitycoalandcoketoworkoutlowerthanthosewhich
wouldbechargedforcokingcoalfromnon-membercountriesandcokemade
fromnon–T.eabercountrycokingcoal* '.-•'
3.Allotherprovisionsconcerningthealignmentprovidedforby
Article60,lastsub-paragraph 2(b)oftheTreaty,anddecisionsin
implementation thereof,shallapplytothetransactions referredtoin
i
(')above,inparticularthosewhichallowtheCommission,intheevent
'ofabuse,toabrogateorrestricttherightoftheundertakings concerned
tograntsuchrebates. •.•
Artide4" '.'
ShouldanundertakinginfringetheruleslaiddowninArticle3»"the
provisionsofArticle64oftheTreatyshallapply.
Article5
.1.Thedeliveredprioesofcokingcoalfromnon-membercountries
■referredtoinArticle3(2)shallbecalculatedfromthepricescif
'.Communityportsforcomparabletransactions.TheCommissionmayfix.
guidecifprices. - .'
'2.Thedeliveredpricesofblast-furnace cokefromnon-membercountries
referredtoinArticle3(2)shallbecalculatedfromthecifpricesfor
cokingcoalreferredtoin(l)aboveinsuohawayastocoverinfull;
thenetcokingcostsofthesupplyingcokingplants.Standardvalues-
therefornaj'belaiddownbytheCommission.
•3*TheOrrjaissionmaylaydowncriteriafortheassessmentof
differencesingradeincokingeoalandcoke.

ssfiTioiTm
Drr-unj.tvfinancir.£arranretfents
Article6
Communityfinancingarrangements shall"besetupforsalesaidspaidin
pursuanceofSectionaofthisPeoisioninconnectionwitheitherdeliveries
toazoneremotefrontheproductioncoalfield,wherethedistanceinvolved
inthetransportisnotlessthan200kilometres,orintra-Conmunity trade.
Aspecialfundadministered bytheCommissionshall "heinstitutedforthis
purpose. .•
■Article7
* 'r
1.CorBBur:ityfinancingshalloperateinrespectofatonnagsofcoking
coalnotexceeding *22millionretrictonsandshall "bebrokendownfor
eachyearofthet®rniofthePocisionasshown"below:
•"Intra-Cornmunity trade: '5millionmetrictons
Internaldelivering:G?.r-nany 4*5"""
France
UnitedKingdom 1.6"h•«
2.Thespecialfu^ishallhefinancedasfollows:
(a)thecontributionoftheEuropeanCoalandSteelCommunityshallbe:
–forthefirstyear,0.182u.a.permetrictonofcoal,i.e.,not
morethan4,000,000u.a.j
–forsecondandthirdyears,0.227u.a.permetric'ionofcoal,
■i.e.,nV:corathan5P000,C00u.a.; .•
–forFubpeqventy^arn,0.273u.a.permetrictonofroal,i.e.,not
morethan6fC00,0«Y)u.a. .•
(b)theMemberStatesurde'rwhopejurisdictionironandsteelundertakings
consumeblast--fn.rr)ane cokereceiveddirectlyorindirectlyv^derthe'5millionmetrictons
4.5"""
0.9"""
1.6" ••»
ollows:

arrangsraentsspecifiedinArticle6shallprovidethefollowing
•*
overallcontributions ,onthescaleshowninparagraph3s
-forthefirstyear,0.818u.a.permetrictonofcoal,i.e.,not
morethan18,000,000u.a.; ,i
-forthesecondandthirdyears,0.773u.a.permetrictonofcoal,
i.e.,notmorethan17,000,000u.a.;
–forthefourthandfifthyears,0.727u.a.permetriotonofcoal,
i.e.,notmorethan16,000,000u.a.; ,
forthesixthyear,O.564u.a.permetrictonofcoal,i.e.,not
morethan12,000,000u.a.; ,•Y
–fortheseventhyear,0«50u.a.permetrictonofcoal,i.e.,not.
morethan11,000,000u.a.; r
–fortheeighthyear,0.291u.a.permetriotonofcoal,i.e.,not
morethan6,400,000u.a.;
theoverallcontribution ofthesteelindustryshallnotexceed
22,000,000u.a.,i.e.,1u.a.permetriotonofcoal"benefiting
fromsalesaid,duringthefirstfiveyearsoftheteirsnofthe
Decision.Duringthelastthreeyears,itshall"bereduced "bythe
amountresultingfromthediminuationoftheaidratesaslaiddown
inArticle1(b)•Theoverallamountofthecontributionshallbe
apportioned amongtheironandsteelundertakings onthebasisof
theirconsumptionofblast-furnace ooke.
Thecontributions tobeprovidedbytheMemberStatesshallbeonthe
followingacai«:
Germany 35$ •" ■
Belgium ,8$ ■.
Prance 29$ \''•/J
UnitedKingdom11$.. .
Italy.1' •7$'' • '
Luxembourg 6$
Netherlands 4$

Article 8
a.The supplier States mayappxy forreimbursement from the special
fund ofaide actually paid .
2.TheCommission shall check theapplications anddetermine theamounts
/
to "bereimbursed from the special fund totheMember States concerned .if
/
thetonnages concerned exceed thelimit fixed inArticle 7(l)tthe
reimbursements shall bocorrespondingly reduced * regards intra-Community
sales ,thepercentage ofthereduction isthe sajne foreach ofthesupplier States
3.TheCommission shall fixthecontributions tobepaid intoThe special
fund on -jhebasis ofthese amounts .
4*Tospeed upCommunity financing ,thesupplier countries shall notify
theCommission ofthedeliveries ofcoking coal qualifying foraidmade
during thepreceding quarter under Article 6.-Onthebasis ofthese
notifications ,theCommission shall request theMember States topaythe
•corresponding amounts .TheCommission shall forthwith apportion these
amounts between thesupplier countries ,atthesame tine asthecorresponding
contribution oftheEuropean Coal andSteel Community .TheCommission
shall call forcontributions from thesteelmaking undertakings andimmediately
apportion thepayments among theproducer andsupplier countries .
5.Thefinal accounts shall besettled atthebeginning ofeaoh calendar
year inrespect ofthepreceding year . '
• . SECTION IV
General arai final provi sions
Artide 9 –
1.TheCommission shall take into account theaids provided forinthis
Decision inassessing whether theaids referred toinArticles 6to9of
Decision Noj/jl/ECSG of22December 1970 axeliable tointerfere with the
proper functioning oftheCommon Market . . ' '
»*/'•*

2.The Corrmission r.ball also ensure that theaids provided forinthis
Decision donothave theeffect ofdistorting conditions ofcompetition
"between coal ,coke arri .iron orsteel undertakings .
Article 10
1.Inanemergency ,andotherwise attheendofthefirst year of
application ofthis Decision andthen every twoyears ,theCommission may ,*
"bydecisions taken after consultation with theConsultative Committee aiid
theCouncil ,amend ; .«•-
-therate ofthesales aids , , . . '
-theceiling to'intra-Community trade ,
-therules governing thefinancing ofthespecial fundj
-the scale referred toinArticle 7jpara .3t
These amendments shall take account ofthelong-term trend ofsupply
conditions andthesupply pattern within theenlarged Community .
2.Ifattherequest ofaMember State oronitsowninitiative the
Commission finds that :
(a)theimplementation ofthis Decision isliable togive' rice toserious
disturbances inthecommon market forooal and steel ,ortodifficulties
which mayresult inadeterioration intheregional economy ,orthat
(b)appreciable changes aretaking place intheconditions ,volume or
pattern ofintra-Comnrunity trade ,thus altering theeconomic conditions
prompting theadoption ofthis Decision ,
itmay suspend application ofthis Decision .Itshall refer thematter
tothe Council forthwith .
3.Ifattherequest ofaMember State oracting onitsowninitiative ,the
Commission finds that performance ofthelong-terra contracts isjeopardising
/-4/.„

-8-
■..^eattainment oftheobjectives ofthis Decision ,itmay ,inrespect ofthe
.dertakings inquestion ,limit the "benefits deriving from theapplication
Article 1. '•
4.Inanemergency ,theCommission shall ,ontherequest ofaMember State ,
laydown without delay thenecessary safeguarding measures ,notify the
other Member States accordingly andrefer thematter totheCouncil forthwith .
' ' ' Article 11
c*
TheCommission shall periodically report totheCounoil ontheapplication
ofthis Decision andondevelopments inthesupply situation ,inparticular
inconnection with intra-Community trade .
Article 12 •
After consulting theCouncil andtheConsultative Committee ,theCommission
shall take allmeasures necessary fortheapplication ofthis Debision .
Article 13
This Decision shall enter into force on for a
period ofeight years .Theapplications provided forinArticle 2(2)in
respect of1973 shall besubmitted by30June 1973 »Fortheperiod from
to30September 1973»theprovisions concerning thepayment of
aids (Article 2(l)(o )),possible rebates intheabsence ofactual competition
(Article 3(l)),andCommunity financing (Article 7)shall apply
notwithstanding theabsence ofalong-term contract ."
Done atBrussels ,
For the Commission
._ ' ThePresident