This special system shall be terminated as described below. 4. The Belgian Government agrees to eliminate the mechanisms described in paragraph 3 above not later than the expiration of the transition period. After consulting the Consultative Committee and with the concurrence of the Council, the High Authority may grant the Belgian Government not more than two additional one-year periods of grace, if it finds that exceptional circumstances not now foreseeable render such a step necessary. The integration of the Belgian coal market into the common market thus provided shall take place following consultation between the Belgian Government and the High Authority, which shall jointly determine the means and procedures appropriate to achieve that end. Notwithstanding the provisions of sub-paragraph (c) of Article 4, these procedures may entail for the Belgian Government the possibility of granting subsidies corresponding to the additional operating expenses resulting from the nature of its coal deposits, taking account of the charges which might result from obvious disequilibria which might increase such expenses. The procedures for granting such subsidies and their size shall be subject to approval by the High Authority, which shall ensure that the amount of the subsidies and the tonnage subsidized are reduced as rapidly as possible, taking account of the facilities for readaptation and of the extension of the common market to products other than coal and steel, and preventing the displacements of production which might occur from provoking fundamental disturbances in the Belgian economy. Every two years the High Authority shall submit to the Council for approval proposals relating to the tonnage likely to require sub sidies. SECTION 27-ITALY 1. The Sulcis mines shall be entitled to benefit from provisions of Section 25 above, in order that, pending completion of the investment operations now underway, these mines may be able to face competition within the common market. The High Authority shall periodically fix the amount of the necessary assistance; external aid shall not be granted for more than two years. 2. In view of the special position of the Italian coking plants, the High Authority is empowered to authorize the Italian Government, to the extent necessary, to maintain customs duties on coke coming from the other member States during the transition period defined in Section 1 of the present Convention; during the first year of this period, these duties may not exceed those resulting from Presidential Decree No. 442 of July 7, 1950. This ceiling shall be reduced by 10% the second year, 25% the third year, 45% the fourth year, and 70% the fifth year, and these customs duties shall be eliminated entirely by the end of the transition period. SECTION 28-FRANCE 1. It is agreed that coal production in French mines: shall not have to bear an annual reduction of more than 1 million tons as compared with the preceding year, if the total production of the Community is the same as or greater than that during the preceding year; or shall not be less than production during the preceding year diminished by one million tons, the figure thus obtained being further reduced by the coefficient of reduction applicable to the total production of the Community as compared with the preceding year. 2. In order to assure that production shifts are maintained within the above limits, the procedures outlined in Section 24 may be reinforced by exceptional resources financed through a special levy imposed by the High Authority on the increase in net shipments from outside coal mines, based on French customs statistics, to the extent that such increase represents a shift in production. For the establishment of this levy, there shall be taken into consideration the quantities representing net deliveries effected during each period in excess of those during 1950, to the extent that they are correlated with a decrease in the production of French mines as compared with 1950, the latter figure being reduced by the same coefficient of reduction as the total production of the Community. This special levy shall not exceed 10% of the producers' receipts from the deliveries in question; in agreement with the High Authority, the proceeds shall be used for lowering in the appropriate zones the price of certain types of coal produced by French mines. Chapter III-Special Provisions for the Steel Industry SECTION 29 1. It is recognized that special precautionary measures may be necessary for the steel industry during the transition period. The purpose of such measures shall be to prevent the production shifts which will result from the establishment of the common market from creating difficulties for enterprises which, after adaptation in accordance with Section 1 of the present Convention, would be in a position to meet competition, as well as from leading to the displacement of more workers than can benefit from the provisions of Section 23. To the extent that the High Authority deems that the provisions of the Treaty-in particular the provisions of Articles 57, 58 and 59 and Section 2 (b) of Article 60-cannot be applied, it shall have the power to resort to the procedures defined below in the order of preference in which they are listed: (a) after consulting the Consultative Committee and the Council, the High Authority may limit directly or indirectly the net increase in shipments from one region to another in the common market; (b) after consulting the Consultative Committee and with the concurrence of the Council both as to the appropriateness of these measures and as to their nature, the High Authority may make use of the means of intervention specified in Article 61, paragraph (b), even in the absence of the finding required by the said article that a manifest crisis exists or is imminent; (c) after consulting the Consultative Committee and with the concurrence of the Council, the High Authority may establish a system of production quotas, without, however, interfering with production earmarked for export; (d) after consulting the Consultative Committee and with the concurrence of the Council, the High Authority may authorize a member State to apply the measures provided in Section 15, paragraph 6, under the terms of the paragraph in question. 2. For the application of the above provisions, the High Authority shall, during the preparatory period defined in Section 1 of the present Convention and in consultation with the producers' associations, the Consultative Committee and the Council, fix the technical criteria for the application of the above-mentioned precautionary measures. 3. If the adaptation or the necessary transformations of production conditions cannot be carried out during a part of the transition period due to shortages, to an insufficiency in the financial resources which the enterprises are able to derive from their operation or which can be placed at their disposal, or to exceptional circumstances unforeseeable at this time, the High Authority, after consultation with the Consultative Committee and with the concurrence of the Council, may extend the provisions of the present Section beyond the expiration of the transition period for an additional period not to exceed the time during which the situation referred to above has lasted, or two years, whichever is less. SECTION 30-ITALY 1. In view of the special position of the Italian steel industry, the High Authority is empowered to authorize the Italian Government, to the extent necessary, to maintain customs duties on steel products coming from other member States during the transition period defined in Section 1 of the present Convention. During the first year of the transition period, these duties may not exceed those resulting from the Annecy Convention of October 10, 1949. The ceiling shall be reduced by 10% the second year, 25% the third year, 45% the fourth year, and 70% the fifth year, and these customs duties shall be eliminated entirely by the end of the transition period. 2. The prices practised by enterprises for steel sales on the Italian market, calculated on the basis of the point chosen for the establishment of each enterprise's price scale, shall not be less than the price listed in this scale for comparable transactions, except where authorized by the High Authority in agreement with the Italian Government, without prejudice to the provisions of the last paragraph of Section 2 (b) of Article 60. SECTION 31-LUXEMBOURG In applying the precautionary measures described in Section 29 of the present Chapter, the High Authority shall take account of the 1 TIAS 2100; 64 Stat., pt. 3, p. B139. exceptional importance of the steel industry in the general economy of Luxembourg and the necessity of preventing serious disturbances in the special marketing conditions which result for the Luxembourg steel industry from the Belgian-Luxembourg Economic Union. In the absence of any other measures, the High Authority may, if necessary, use the funds which are at its disposal by virtue of Article 49 of the present Treaty within the limit of the possible repercussions on the Luxembourg steel industry of the measures provided in Section 26 of the present Convention. DONE at Paris, the eighteenth of April, one thousand nine hundred and fifty-one. 15. AGREEMENT BETWEEN THE UNITED STATES AND THE EUROPEAN COAL AND STEEL COMMUNITY, APRIL 23, 1954 1 WHEREAS, the European Coal and Steel Community, established by Treaty dated April 18, 1951, was created with supranational powers in order to establish a common basis for economic development in Europe through the creation of a common market in coal and steel and thereby to establish a foundation for the unification of Europe; and WHEREAS, the United States of America, recognizing that economic unification in Europe is a means of building strength, enhancing security, and preserving peace in the North Atlantic area, desires to assist the European Coal and Steel Community in its efforts to attain the objectives of the Community; and WHEREAS, the attainment of the purposes of the European Coal and Steel Community requires at this time that additional capital resources from outside the Community be made available to the enterprises of the Community in order to modernize and expand facilities for the production of raw materials; and WHEREAS, the High Authority of the European Coal and Steel Community has requested the extension of credit by the United States of America in order to provide additional capital resources, thereby enabling it to further the creation of a broad competitive market in coal and steel and to stimulate the revival of European capital markets; and WHEREAS, the President of the United States of America has determined that it is necessary and appropriate in order to achieve the purposes of the Mutual Security Act of 1951,2 as amended, to assist the High Authority of the European Coal and Steel Community to carry out the purposes of the Community by extending a loan to the High Authority from funds available under that Act; 1 Treaties and Other International Acts Series (TIAS) 2945; 5 UST 524–541. * Act of Oct. 10, 1951; infra, pp. 3059-3086. Now, THEREFORE, the Government of the United States of America and the High Authority of the European Coal and Steel Community hereby agree as follows: ARTICLE I Establishment of Credit There is hereby established in favor of the High Authority a credit of One Hundred Million Dollars ($100,000,000) against which ExportImport Bank of Washington (hereinafter referred to as "Eximbank”), acting as agent for the Government of the United States of America, will make advances from time to time, after the date of this Agreement and on or before June 30, 1955, in furtherance of the purposes expressed in the preamble of this Agreement and subject to the terms and conditions hereinafter stated, to enable the High Authority to make loans (hereinafter referred to as "project loans") to enterprises to which the High Authority is empowered to make loans under the Treaty. Such loans shall be made to assist such enterprises in financing investment projects initiated by them which are approved by the High Authority as urgently required for modernizing and expanding facilities for the production of raw materials in the Community, and which are considered by the High Authority to be consistent with the operation of a common market free from national barriers and private obstructions to competition. For the purposes of the credit, such investment projects shall be limited to the following categories: (a) Modernizing and mechanizing mining operations and expanding capacity for the production of coal and providing additional housing for miners. (b) Modernizing and mechanizing mining operations and expanding capacity for the production of iron ore, modernizing facilities for the treatment of iron ore, and providing additional housing for miners. (c) Modernizing operations and expanding capacity for the production of coke. (d) Constructing and modernizing power stations at the pit heads to facilitate the use of low-grade coal to supply low-cost power for coal mining operations and for sale. ARTICLE II Advances Under the Credit Not less than thirty days prior to the date on which the High Authority desires an advance under the credit, it shall notify Eximbank of its intention to request such advance, specifying the date of such advance and the amount thereof in terms of United States dollars. Such advance may be made in United States dollars or, at the option of Eximbank after consultation with the High Authority, in whole or in part in any currency other than United States dollars (hereinafter referred to as "foreign currency") which the Government |