18. 8. 88 Official Journal of the European Communities No L 229/37 (Acts whose publication is not obligatory) COMMISSION COMMISSION DECISION “of 29 March 1988 on aids granted by the French Government to a farm machinery manufacturer at St Dizier, Angers and Croix (International Harvester/Tenneco) " (Only the French text is authentic) (88/468/EEC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, and in particular the first subparagraph of Article 93 (2) thereof, Having given notice. to the parties concerned to submit their comments as provided for in the said Article 93, and having regard to those comments, Whereas : I Upon repeated requests from the Commission, the French Government belatedly informed the Commission by letters of 3 October 1985 and 30 January 1986 that financial assistance had been granted to the third largest farm machinery manufacturer in France. The aid, which had been granted in 1985 and 1986 in order to finance the restructuring of the recipient, took the following forms : — a grant of FF 40 million paid in 1985; — a 15-year equity loan of FF 135 million, half paid in 1985 and half in 1986 with a three-year grace period for repayment ; the rate varies according to the cash flow of the undertaking, with a ceiling of 14%. Theg Commission considered that the aid fell within Article 92 (1) and that, on the basis of the information available to it and that sent by the French authorities, the aid did not appear to satisfy the conditions of Article 92 (3) in order to qualify for one of the exemptions laid down therein. It therefore opened the procedure under Article 93 (2) against the aid in question. By letter of 3 March 1986, it gave the French Government notice to submit its comments. The other Member States were informed on 20 May 1986 and interested parties on 27 May 1986. IT The French Government submitted its comments under the procedure provided for in Article 93 (2) of the EEC Treaty letter of 27 August 1986. According to the French authorities, the grant constitutes an exceptional loan because of the serious social and regional consequences for employment in the areas in question if Tenneco were not to take over the French subsidiary of International Harvester. According to their initial information, the French authorities had pointed out that the future of the French branch of International Harvester at its production plants at Angers, St Dizier and Croix had been under threat for several years owing to the serious difficulties besetting the parent company in the United States and its concen- tration on other activities to the detriment of heavy agricultural equipment, an industry which is facing a lasting, worldwide market depression.