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AGREEMENT

IN THE FORM OF AN EXCHANGE OF LETTERS MODIFYING CERTAIN DUTY-FREE QUOTAS OPENED FOR 1979 BY THE UNITED KINGDOM IN ACCORDANCE WITH PROTOCOL 1 TO THE AGREEMENT BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE REPUBLIC OF FINLAND

LETTER NO 1

SIR ,

ACCORDING TO PROTOCOL 1 TO THE AGREEMENT BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE REPUBLIC OF FINLAND , SIGNED IN BRUSSELS ON 5 OCTOBER 1973 , THE UNITED KINGDOM HAS SINCE 1 JANUARY 1974 OPENED TARIFF QUOTAS FOR COATED PRINTING AND WRITING PAPER ( EX 48.07 C ) AS WELL AS FOR KRAFT PAPER FOR LARGE CAPACITY SACKS ( EX 48.01 C II ) . THE PERMISSIBLE MAXIMA FOR THESE QUOTAS WERE FIXED ON THE BASIS OF STATISTICS AVAILABLE FOR THE PERIOD 1968 TO 1971 .

WITHIN THE QUOTA FOR COATED PRINTING AND WRITING PAPER THE UNITED KINGDOM HAS ESTABLISHED A SUB-QUOTA FOR LIGHT-WEIGHT COATED MECHANICAL PAPER WEIGHING LESS THAN 65 G/M2 ( LWC ) .

DURING RECENT YEARS THE DEMAND FOR LWC HAS INCREASED SIGNIFICANTLY IN THE UNITED KINGDOM AND ELSEWHERE . AS THE PAPER IN QUESTION IS AT PRESENT IN SHORT SUPPLY IN THE COMMUNITY , IT IS PROPOSED THAT THE PERMISSIBLE MAXIMUM FOR THE QUOTA WHICH THE UNITED KINGDOM MAY OPEN IN 1979 FOR COATED PRINTING AND WRITING PAPER BE INCREASED BY 7 571 TONNES TO A TOTAL OF 27 075 TONNES , IT BEING UNDERSTOOD THAT THE INCREASE WILL BE CONFINED TO THE SUB-QUOTA FOR LWC . AS A COMPENSATION THE PERMISSIBLE MAXIMUM FOR THE QUOTA FOR KRAFT PAPER FOR LARGE CAPACITY SACKS WOULD BE DECREASED FOR 1979 BY 7 571 TO 41 057 TONNES . THE QUOTA FOR THIS TYPE OF PAPER HAS BEEN UNDER-UTILIZED DURING RECENT YEARS .

I SHOULD BE OBLIGED IF YOU WOULD INFORM ME WHETHER THE FINNISH AUTHORITIES ARE IN AGREEMENT WITH THE ABOVE .

PLEASE ACCEPT , SIR , THE ASSURANCE OF MY HIGHEST CONSIDERATION .

ON BEHALF OF THE COUNCIL OF THE EUROPEAN COMMUNITIES

LETTER NO 2

I HAVE THE HONOUR TO ACKNOWLEDGE RECEIPT OF YOUR LETTER OF TODAY'S DATE WHICH READS AS FOLLOWS :

" ACCORDING TO PROTOCOL 1 TO THE AGREEMENT BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE REPUBLIC OF FINLAND , SIGNED IN BRUSSELS ON 5 OCTOBER 1973 , THE UNITED KINGDOM HAS SINCE 1 JANUARY 1974 OPENED TARIFF QUOTAS FOR COATED PRINTING AND WRITING PAPER ( EX 48.07 C ) AS WELL AS FOR KRAFT PAPER FOR LARGE CAPACITY SACKS ( EX 48.01 C II ) . THE PERMISSIBLE MAXIMA FOR THESE QUOTAS WERE FIXED ON THE BASIS OF STATISTICS AVAILABLE FOR THE PERIOD 1968 TO 1971 .

WITHIN THE QUOTA FOR COATED PRINTING AND WRITING PAPER THE UNITED KINGDOM HAS ESTABLISHED A SUB-QUOTA FOR LIGHT-WEIGHT COATED MECHANICAL PAPER WEIGHING LESS THAN 65 G/M2 ( LWC ) .

DURING RECENT YEARS THE DEMAND FOR LWC HAS INCREASED SIGNIFICANTLY IN THE UNITED KINGDOM AND ELSEWHERE . AS THE PAPER IN QUESTION IS AT PRESENT IN SHORT SUPPLY IN THE COMMUNITY , IT IS PROPOSED THAT THE PERMISSIBLE MAXIMUM FOR THE QUOTA WHICH THE UNITED KINGDOM MAY OPEN IN 1979 FOR COATED PRINTING AND WRITING PAPER BE INCREASED BY 7 571 TONNES TO A TOTAL OF 27 075 TONNES , IT BEING UNDERSTOOD THAT THE INCREASE WILL BE CONFINED TO THE SUB-QUOTA FOR KRAFT PAPER FOR LARGE CAPACITY SACKS WOULD BE DECREASED FOR 1979 BY 7 571 TO 41 057 TONNES . THE QUOTA FOR THIS TYPE OF PAPER HAS BEEN UNDER-UTILIZED DURING RECENT YEARS .

I SHOULD BE OBLIGED IF YOU WOULD INFORM ME WHETHER THE FINNISH AUTHORITIES ARE IN AGREEMENT WITH THE ABOVE . "

I HAVE THE HONOUR TO INFORM YOU THAT THE FINNISH AUTHORITIES ARE IN AGREEMENT WITH THE CONTENTS OF YOUR LETTER .

PLEASE ACCEPT , SIR , THE ASSURANCE OF MY HIGHEST CONSIDERATION .

FOR THE REPUBLIC OF FINLAND