31.12. 93 Official Journal of the European Communities No L 34371 (Acts whose publication is obligatory) COUNCIL REGULATION (EC) No 3697/93 of 20 December 1993 . withdrawing tariff concessions in accordance with Article 23 (2) and Article 27 (3) (a) of the Free Trade Agreement between the Community and Austria (General Motors Austria) THE COUNCIL OF THE EUROPEAN UNION, Having regard of the Treaty establishing the European Community, and in particular Article 113 thereof, Having regard to the proposal from the Commission, Whereas a Free Trade Agreement between the European Economic Community and the Republic of Austria, hereinafter referred to as ‘the Agreement’, was signed at Brussels on 22 July 1972 (!); Whereas the Agreement eliminated customs duties in trade between the Community and Austria in respect of industrial products originating in the Contracting Parties within meaning of Protocol 3 to the Agreement; Whereas the Agreement requires the Contracting Parties to provide fair conditions of competition for trade; Whereas Article 23 (1) (III) of the said Agreement stipulates that any public aid affecting trade between the Community and Austria which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods is incompatible with the proper functioning of the Agreement; Whereas, in a declaration published at the same time as the Agreement, the Community stated that it would assess any practices contrary to the abovementioned Article on the basis of criteria arising from the application of Article 92 of the Treaty; Whereas in March 1991 the Commission learned that the Austrian federal and regional authorities intended to grant official aid of 15% to General Motors Austria (GMA) for its investment to expand component productions of gearboxes, camshafts and cylinder heads ('} OJ No L 300, 31. 12. 1972, p. 2. at its plant in Aspern/Vienna, with the gearboxes being imported into the Community to assemble them into General Motors cars and the engine components exported to Hungary for assembly into General Motors engines; Whereas Council Regulation (EEC) No 2837/72 of 19 December 1972 on safeguard measures provided for in the Agreement between the European Economic Community and the Republic of Austria (2) provides that in such cases the Commission must assess the case, either on its own initiative or at the request of a Member State, and give its opening on whether or not the practices in question are compatible with the Agreement; Whereas the aided investment programme was intended to rationalize production and expand output in the Vienna plant; Whereas the contract with the federal authorities granting 10 % aid up to a ceiling of 450 million Austrian schillings for investment totalling 4 471 million Austrian schillings was signed by the parties in question on 21 July 1992 and there also exists a similar contract with the regional authorities granting 5 % aid up to a ceiling of 225 million Austrian schillings for the same investment; Whereas further information requested by the Commission was sent by the Austrian Government in January 1993; Whereas after a detailed assessment of the case and further contacts with the Austrian authorities in February 1993, the GMA case was officially referred to the Joint Committee on 25 February 1993, in accordance with " Article 27 (2) and (3) {a) of the Agreement specified above, where a further list of demands for clarification was handed over to the Austrian authorities; (*) O] No L 300, 31. 12. 1972, p. 1. Regulation as last amended by Regulation (EEC) No 638/90 (O] No L 74, 20. 3. 1990, p- 1).