SMALLER SCALE .
3 BY DECISION 1831/81 , THE COMMISSION ESTABLISHED A NEW SYSTEM WHEREBY QUOTAS ARE IMPOSED NOT ONLY IN RESPECT OF EACH UNDERTAKING ' S PRODUCTION BUT ALSO IN RESPECT OF THE PART THEREOF WHICH MAY BE DELIVERED ON THE COMMON MARKET ( KNOWN AS ' THE DELIVERY QUOTA ' ). THAT DECISION PROVIDES THAT SUCH QUOTAS ARE TO BE CALCULATED ON THE BASIS OF UNDERTAKINGS ' SALES DURING A GIVEN REFERENCE PERIOD .
4 THAT REFERENCE PERIOD COINCIDED IN PART WITH THE PERIOD IN WHICH SIDERADRIA WAS COMPELLED TO SUSPEND ITS ACTIVITIES . THAT IS WHY THE SALES FIGURES NOTIFIED BY SIDERADRIA TO THE COMMISSION RELATE IN THE MAIN TO 1979 . ON THE BASIS OF THOSE FIGURES , AND PURSUANT TO DECISION 1831/81 , THE COMMISSION DECIDED TO ALLOCATE TO SIDERADRIA FOR THE THIRD QUARTER OF 1981 A PRODUCTION QUOTA OF 9 798 TONNES AND A DELIVERY QUOTA OF 4 254 TONNES , WHICH WERE NOTIFIED TO IT ON 10 AUGUST 1981 .
5 IN OCTOBER 1981 , HOWEVER , SIDERADRIA APPLIED TO THE COMMISSION FOR AN ADJUSTMENT OF THOSE QUOTAS . IT POINTED OUT THAT THE FIGURES ON THE BASIS OF WHICH ITS PRODUCTION QUOTA HAD BEEN CALCULATED WERE INCORRECT . IT FURTHER MAINTAINED THAT THE DELIVERY QUOTA HAD BEEN FIXED BY REFERENCE TO A PERIOD IN WHICH IT HAD EXPORTED OVER 70% OF ITS PRODUCTION OUTSIDE THE COMMON MARKET AND THAT IT WOULD THEREFORE BE ABLE TO SELL WITHIN THE COMMON MARKET ONLY A VERY SMALL PROPORTION OF THE PRODUCTION ALLOCATED TO IT .
6 THE COMMISSION DID NOT TAKE ANY ACTION IN RESPONSE TO THAT LETTER . INSTEAD , ON 25 FEBRUARY 1982 IT INFORMED SIDERADRIA THAT IT HAD ESTABLISHED THAT DURING THE THIRD QUARTER OF 1981 THE PRODUCTION QUOTA HAD BEEN EXCEEDED BY 2 191 TONNES AND THE DELIVERY QUOTA BY 6 107 TONNES .
7 IN REPLY TO THE COMMISSION ' S LETTER , SIDERADRIA AGAIN APPLIED FOR AN ADJUSTMENT OF ITS PRODUCTION AND DELIVERY QUOTAS .
8 ON 19 AUGUST 1982 THE COMMISSION REPLIED THAT A DETAILED EXAMINATION OF SIDERADRIA ' S SITUATION HAD REVEALED THAT ITS PRODUCTION QUOTA FOR THE THIRD QUARTER OF 1981 HAD WRONGLY BEEN FIXED AT AN EXCESSIVELY LOW LEVEL . THE COMMISSION FIXED A NEW PRODUCTION QUOTA WHICH WAS GREATER THAN SIDERADRIA ' S PRODUCTION FOR THE THIRD QUARTER OF 1981 AND WHICH ABSORBED THE EXCESS ESTABLISHED BY THE COMMISSION .
9 MOREOVER , IN DECEMBER 1982 THE COMMISSION ESTABLISHED THAT SIDERADRIA FULFILLED THE CONDITIONS LAID DOWN BY ARTICLE 8 ( 2 ) OF DECISION 1831/81 , AS SUPPLEMENTED BY DECISION 2804/81/ECSC OF 23 SEPTEMBER 1981 ( OFFICIAL JOURNAL 1981 , L 278 , P . 1 ). THAT PROVISION AUTHORIZES THE COMMISSION TO ADJUST A DELIVERY QUOTA WHERE THAT QUOTA HAS , IN PARTICULAR , CAUSED SERIOUS DIFFICULTIES TO AN UNDERTAKING . IN THE CASE OF SIDERADRIA , HOWEVER , THE ADJUSTMENT DID NOT RELATE TO THE THIRD QUARTER OF 1981 . ACCORDINGLY ,