FRANCO-LUXEMBOURG TARIFF NO 3530-05 - NOW DESIGNATED TARIFF NO 5024-05 ) AND TO THE SAAR ( FRANCO-GERMAN TARIFF NO 3101 - NOW DESIGNATED TARIFF NO 5001 - PART III - PRICE SCALE NO 2 ) ;
WHEREAS THE COMMISSION , WITH THE AGREEMENT OF THE MEMBER STATES CONCERNED , CONSIDERED ALL THESE MEASURES AS AN INTEGRAL PART OF THE TARIFF STRUCTURE AS A WHOLE AND THEREFORE LIMITED ITS AUTHORIZATION THEREOF TO A PERIOD EXPIRING ON 31 DECEMBER 1974 ;
WHEREAS , BY LETTERS DATED 20 DECEMBER 1974 , 23 DECEMBER 1974 AND 14 MARCH 1975 FROM THE OFFICES OF THE PERMANENT REPRESENTATIVES OF FRANCE , GERMANY AND LUXEMBOURG RESPECTIVELY TO THE EUROPEAN COMMUNITIES , THE FRENCH , GERMAN AND LUXEMBOURG GOVERNMENTS ADDRESSED A REQUEST TO THE COMMISSION TO EXTEND UNTIL 31 DECEMBER 1976 THE AUTHORIZATION FOR ALL THE TARIFFS IN QUESTION WITH THE TARIFF REDUCTIONS APPLIED PREVIOUSLY , IT BEING UNDERSTOOD HOWEVER THAT THE REDUCTION OF FF 1.01 GRANTED OVER THE FRENCH SECTION AS PROVIDED FOR IN FRANCO-GERMAN TARIFF NO 5001 WOULD IN FUTURE BE SUBSIDIZED IN FULL BY THE SNCF ;
WHEREAS IN THEIR REQUEST AND IN PARTICULAR DURING A CONSULTATION MEETING WITH THE COMMISSION , THE GOVERNMENTS CONCERNED HAVE POINTED OUT THAT :
1 . THE CIRCUMSTANCES WHICH GAVE RISE TO PREVIOUS AUTHORIZATIONS GRANTED BY THE COMMISSION STILL PREVAIL TODAY , THAT SINCE THE FIRST AUTHORIZATIONS WERE GRANTED , THE SITUATION OF FRENCH IRON ORE COMPARED WITH IMPORTS OF RICH ORE FROM NON-MEMBER STATES HAS NOT CHANGED FUNDAMENTALLY , THAT ITS POSITION REMAINS UNFAVOURABLE AND THAT THE DISADVANTAGE OF THE LOW IRON CONTENT OF FRENCH , AND , PARTICULARLY , LORRAINE IRON ORE , WHICH IS REFLECTED IN A HIGH CONSUMPTION OF COKE IN BLAST FURNACES , HAS BECOME MORE ACUTE DUE TO THE CONSIDERABLE INCREASES IN THE PRICE OF COKE ;
2 . THE CONTINUED APPLICATION OF THE SPECIAL TARIFF MEASURES CONCERNED SHOULD ENABLE THE FRENCH IRON MINES TO PURSUE THEIR EFFORTS TOWARDS RATIONALIZATION AND MODERNIZATION , WHICH HAVE BEEN REFLECTED IN INCREASED PRODUCTIVITY ( THE OUTPUT OF MINES IN THE EAST , FOR EXAMPLE , INCREASED BY 38 % BETWEEN 1968 AND 1973 ) AND REDUCE THE RISK TO THE RAILWAYS OF LOSING TRAFFIC OF SOME 10 MILLION METRIC TONS WHICH IS STILL PROFITABLE ; THE FRENCH AND LUXEMBOURG GOVERNMENTS SUPPORT THEIR REQUEST FOR AN EXTENTION OF AUTHORIZATION OF THE SAID MEASURES BY STRESSING THEIR IMPORTANCE TO THEIR RAILWAYS ;
3 . THE CONTINUED OPERATION OF FRENCH MINES IS OF IMPORTANCE TO THE COMMUNITY IN THAT THIS ENSURES SURVIVAL OF SOURCES OF SUPPLY OF RAW MATERIALS AND TO A CERTAIN EXTENT INSURES AGAINST THE RISKS ASSOCIATED WITH IMPORTS FROM NON-MEMBER PRODUCER COUNTRIES AT A TIME WHEN THE LATTER ARE UNITING IN AN ATTEMPT TO STRENGTHEN THEIR POSITION VIS-A-VIS CONSUMER COUNTRIES ;
WHEREAS THE CIRCUMSTANCES INVOKED BY THE GOVERNMENTS CONCERNED AS SET OUT IN 1 AND 2 ABOVE SEEM INCONTESTABLE IN SO FAR AS THEY ARE INTENDED TO JUSTIFY AID FOR THE FRENCH IRON MINES ; WHEREAS