PURCHASES CANNOT BE MORE SATISFACTORILY ACHIEVED BY THE PARTIES ACTING INDEPENDENTLY ;
( II ) TO DETERMINE THE NEED FOR THE EMPLOYMENT OF SSL , THE PARTIES REGULARLY EXCHANGE INFORMATION THROUGH SSL ON THE PRICES PAID FOR SCRAP OR SUCH OTHER STEELMAKING MATERIALS AS MAY BE AGREED BY THEM FROM TIME TO TIME ;
( III ) SSL MAY ALSO BE EMPLOYED BY THE PARTIES TO FURTHER THEIR STUDIES OF THE DIRECT REDUCTION OF IRON ORE FOR USE AS A STEELMAKING RAW MATERIAL AND TO MAKE ARRANGEMENTS FOR THE SUPPLY OF SUCH MATERIAL ;
( IV ) EACH PARTY TO THE AGREEMENT HAS THE POWER TO APPOINT A REPRESENTATIVE TO THE MANAGEMENT COMMITTEE OF SSL .
5 . THE AGREEMENT RESTRICTS NORMAL COMPETITION WITHIN THE COMMON MARKET IN THAT THE PARTIES AGREE TO ALLOCATE PRODUCTS AND SOURCES OF SUPPLY THROUGH SSL AND TO EXCHANGE PRICE INFORMATION FOR THIS PURPOSE . THE AGREEMENT THEREFORE FALLS WITHIN THE PROHIBITION IN ARTICLE 65 ( 1 ).
6 . THE AGREEMENT IS , HOWEVER , STRICTLY ANALOGOUS IN NATURE AND EFFECT TO A JOINT BUYING AGREEMENT AND CAN THEREFORE BE AUTHORIZED IF IT CONTINUES TO MEET THE CONDITIONS SET OUT IN ARTICLE 65 ( 2 ) ( A ), ( B ) AND ( C ).
7 . DURING THE INITIAL THREE-YEAR PERIOD OF THE AGREEMENT IT WAS USED FOR THE JOINT BUYING THROUGH SSL OF FERRO-ALLOYS AND OTHER ALLOYING MATERIALS WHICH ARE ESSENTIAL FOR THE PRODUCTION OF CERTAIN STEELS . THE MATERIALS SO BOUGHT INCLUDED FERRO-SILICON , FERRO-MANGANESE , SILICO-MANGANESE AND FERRO-CHROME WITH A TOTAL TONNAGE OF ABOUT 40 000 TONNES PER YEAR VALUED AT POUND ST . 13 MILLION . THE EXISTENCE AND EMPLOYMENT OF SSL FOR THIS PURPOSE ENABLED THE PARTIES , WHOSE BUYING POWER WOULD OTHERWISE HAVE BEEN FRAGMENTED , TO OBTAIN IMPROVED SUPPLY TERMS FROM THE PRODUCERS OF THESE ALLOYING MATERIALS , WITH AN ESTIMATED SAVING OF POUND ST . 250 000 PER YEAR . THESE SAVINGS COULD NOT HAVE BEEN ACHIEVED WITHOUT THE AGREEMENT . THE PARTIES ENVISAGE THAT THE VALUE OF THE ALLOYING MATERIALS TO BE PURCHASED JOINTLY AND THE AMOUNT OF SAVINGS WILL INCREASE IN THE FUTURE - PROBABLY DOUBLING IN 1977 .
8 . THE PARTIES HAVE NOT SO FAR USED SSL FOR THE JOINT BUYING OF FERROUS SCRAP , BECAUSE OF THE LOW DEMAND FOR SCRAP WHICH HAS PREVAILED DURING A LARGE PART OF THE INITIAL THREE-YEAR PERIOD DUE TO THE POOR STATE OF TRADE ON THE STEEL MARKET . WHEN THE STEEL MARKET RECOVERS , HOWEVER , AND GIVES RISE TO A GREATER PRESSURE OF DEMAND FOR SCRAP , THE PARTIES WILL WISH TO HAVE THE POSSIBILITY OF EMPLOYING SSL TO UNDERTAKE JOINT PURCHASES ( INCLUDING JOINT IMPORTS ) OF SCRAP ON THEIR BEHALF . THIS WILL HELP THE PARTIES TO COMBAT THE DOMINANT BUYING POSITION OF THE BRITISH STEEL CORPORATION ( BSC ) IN THE BRITISH SCRAP MARKET .
9 . THE EXCHANGE OF INFORMATION ON THE PRICES OF SCRAP AND OTHER