CELEX: 51977PC0311
Language: en
Date: 1977-06-30
Title: DRAFT COMMISSION DECISION (ECSC) amending Decision 3544/73/ECSC implementing Decision 73/287/ECSC concerning coking coal and coke

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (77) 311
Vol. 1977/0104
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
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file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
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 ---pagebreak---         COMMISSION OF THE EUROPEAN COMMUNITIES
                                                                                       j
                                                             COM(77)311 final.
                                                             Brussels . 30 June 1977 »
                      >   DRAFT COMMISSION DECISION- (ECSC )
              amending Decision 3544/73/ECSC implementing Decision
                   73/287/ECSC concerning coking coal and coke
°0M(77 ) 311 final
 ---pagebreak---     Justification of a decision amending decision No . 3544 / 73 / ECSC
       implementing decision No . 73/ 287/ ECSC on coking coal and coke                    i
                                                                               ;           !•
              for the iron and steel industry of the Community ( 1 )                       j
1 . Under decision No . 73/ 287/ ECSC , aids for coking coal and blast-furnace coke
    may be paid only where deliveries are made under long-term contract ( article
    2 , 1 ( c ) ; equally , coal undertakings are authorized to grant rebates pn
    their list-prices only in respect of such deliveries ( article 3 , 1 ).
2 . Article 3 of decision No . 3544 / 73 / ECSC , implementing the above decision ( 2 )
    defines the requirements that a mutual agreement needs to meet in order to be
    regarded as a long-term contract and hence qualify for the aids and the
    alignment rebates mentioned above .
    In particular , an agreement relating to a fixed tonnage may allow performance
    variations above or below the stated tonnage , as provided for in the decision
    ( article     3 , 2 a ). These upper and lower limits ( flexibility ) have enabled th =
    system to absorb the impact of economic changes between 1974 and 1976 .
3 . For the year 1977 , the Commission has introduced a scheme to bring the supply
    of iron and steel products more into line with demand , this scheme relies
    inter alia upon commitments by Community steel undertakings to adhere to the
    delivery limits set by the Commission ( 3 ).
    For a given undertaking , the fact of meeting such a commitment is likely to
    bring about reduced production of steel and pig iron and consequently lower
    consumption of coking coal and blast-furnace coke .       This reduction could
     largely exceed the maximum permitted flexibility for long-term contracts ( 10
     ( see paragraph 2 above ).
    It follows that such an undertaking could find itself at a disadvantage in
    comparison with its competitors , either as a result of having respected the
    flexibility mentioned above - hence incurring significent stockholding costs -
    or , as a result of not having met commitments under its supply contract
    thereby losing the benefit of aids and alignment .
     ( 1 ) 0J No . L 259 of 15.9.73
     ( 2 ) 0J No L 361 of 29.12.73
     ( 3 ) see decision 962/ 77/ ECSC of 4 May , 1977 fixing minimum prices for certain
           concrete reinforcement bars . 0J No . L 114 of 5.5.77 , second consideration .
 ---pagebreak---                                      - 2 -
4 . Given that this situation applies to a goo.d number of undertakings , it is
     the Commission 's view that for 1977 , greater flexibility is required in the
     performance criteria applicable to long-term contracts - without however
                                                                              •ι
     changing the definitions of the implementing decision and , naturally without
     bringing into question the individual obligations arising under private law
     from long-term agreements concluded between suppliers and purchasers of
     Community coal-
     The right to benefit from aids and alignment rebates will be not be impaired
     for any contract where the 1977 performance does not fall short of the bass
     tonnage by a percentage greater than that by which the buyer 's pig iron
     output varies against the reference period set for the delivery limits for
     iron and steel products .
 5 . Such a measure poses problems for the coal undertakings ; they need to maintain
     sufficient production capacity to cover all their contracts and it is therefore
     necessary to avoid pronounced variations in performance between these contracts
     For this purpose every purchaser who has negociated supply contracts with
     several Community undertakings , must ensure for each individual contract at lea
     the minimum level of performance defined above , failing which his overall
     liftings will cease to qualify for aids and alignment rebates .
 6 . Accordingly , the Commission proposes to take a decision ( ECSC ); the draft
     instrument is attached .
     The draft is submitted to the Council and to the Consultative Committee in
     accordance with article 12 of decision No . 73/ 287/ ECSC .
 ---pagebreak---  Draft Commi ssion Decision amending Decision 3544/73/ECSC
     imp lamenting Decision       73/ 287/ ECSC concerning coking coal
                                and coke
                             Article 1
 There is hereby added to Article 3 ( 2) of Decision. 3544/73/EESC .the following f
 " c ) For the year 1977 and in respect of the supplies to a steel undertaking which
has undertaken to * adhere to the delivery limits for iron and steel products set
"by the Commission , the performance of an agreement relating to a fixed tonnage
may very "below this tonnage "by a percentage not exceeding the reduction in the
pig /'"production of the undertaking during 1977 as compared with the reference
 period established in respect of the delivery limits set for its iron and steel
 products .
 If the supplies to an iron and steel undertaking are covered by two or more
 long–term fixed-tonnage contracts , each and every one shall tie performed at
 least to the extents set out above " •
                            Article 2
 This Decision shall take effect retrospectively from 1 January 1977 and shall
 cease to have effect on         ■ 31 December 1977 .
 This' Decision shall be binding in its entirety ahd directly applicable in all
 Member States .
 Done at Brussels .