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AGREEMENT

IN THE FORM OF AN EXCHANGE OF LETTERS BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE HUNGARIAN PEOPLE'S REPUBLIC

SIR ,

I HAVE THE HONOUR TO REFER TO THE AGREEMENT INITIALLED ON 30 NOVEMBER 1978 BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE HUNGARIAN PEOPLE'S REPUBLIC ON TRADE IN TEXTILE PRODUCTS .

DURING THE NEGOTIATIONS FOR THIS AGREEMENT THE COMMUNITY AND THE HUNGARIAN PEOPLE'S REPUBLIC ALSO AGREED , TAKING INTO CONSIDERATION THE FACT THAT BOTH WERE CONTRACTING PARTIES TO THE PROTOCOL CONCERNING HUNGARY'S ACCESSION TO GATT , ON THE FOLLOWING PROVISIONS CONCERNING TRADE IN CERTAIN PRODUCTS OF FLAX OR RAMIE :

" DURING THE PERIOD OF VALIDITY OF THE BILATERAL AGREEMENT REFERRED TO ABOVE THE HUNGARIAN PEOPLE'S REPUBLIC SHALL , FOR EACH CALENDAR YEAR , COMPLY WITH THE QUANTITATIVE LIMITS ON EXPORTS OF PRODUCTS OF FLAX OR RAMIE TO THE COMMUNITY , IN ACCORDANCE WITH ANNEXES I AND II ( I : DESCRIPTION OF PRODUCTS ; II : LEVEL OF HUNGARIAN EXPORTS ) .

THESE VOLUNTARY RESTRAINT MEASURES AND THE ADMINISTRATION THEREOF SHALL , BY ANALOGY , BE SUBJECT TO THE SAME CONDITIONS AS THOSE APPLYING TO EXPORTS OF PRODUCTS IN GROUP III , IV OR V COVERED BY THE AGREEMENT BETWEEN THE COMMUNITY AND THE HUNGARIAN PEOPLE'S REPUBLIC ON TRADE IN TEXTILE PRODUCTS . THE SAME APPLIES TO THE REFERENCES IN THE SAID ANNEXES I AND II MADE TO ARTICLES OF THE AGREEMENT . "

THE ENTRY INTO FORCE AND DURATION OF THE ARRANGEMENTS PROVIDED FOR BY THE ABOVE CLAUSES SHALL BE THE SAME AS THOSE OF THE AGREEMENT .

I SHOULD BE OBLIGED IF YOU WOULD CONFIRM THAT THE FOREGOING IS IN ACCORDANCE WITH THE CONCLUSIONS REACHED FOLLOWING THE NEGOTIATIONS ON THIS QUESTION BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE HUNGARIAN PEOPLE'S REPUBLIC .

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

FOR THE EUROPEAN ECONOMIC COMMUNITY

SIR ,

I HEREBY CONFIRM RECEIPT OF YOUR LETTER OF TODAY'S DATE WHICH READS AS FOLLOWS :

" I HAVE THE HONOUR TO REFER TO THE AGREEMENT INITIALLED ON 30 NOVEMBER 1978 BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE HUNGARIAN PEOPLE'S REPUBLIC ON TRADE IN TEXTILE PRODUCTS .

DURING THE NEGOTIATIONS FOR THIS AGREEMENT THE COMMUNITY AND THE HUNGARIAN PEOPLE'S REPUBLIC ALSO AGREED , TAKING INTO CONSIDERATION THE FACT THAT BOTH WERE CONTRACTING PARTIES TO THE PROTOCOL CONCERNING HUNGARY'S ACCESSION TO GATT , ON THE FOLLOWING PROVISIONS CONCERNING TRADE IN CERTAIN PRODUCTS OF FLAX OR RAMIE :

" DURING THE PERIOD OF VALIDITY OF THE BILATERAL AGREEMENT REFERRED TO ABOVE THE HUNGARIAN PEOPLE'S REPUBLIC SHALL , FOR EACH CALENDAR YEAR , COMPLY WITH THE QUANTITATIVE LIMITS ON EXPORTS OF PRODUCTS OF FLAX OR RAMIE TO THE COMMUNITY , IN ACCORDANCE WITH ANNEXES I AND II ( I : DESCRIPTION OF PRODUCTS ; II : LEVEL OF HUNGARIAN EXPORTS ) .

THESE VOLUNTARY RESTRAINT MEASURES AND THE ADMINISTRATION THEREOF SHALL , BY ANALOGY , BE SUBJECT TO THE SAME CONDITIONS AS THOSE APPLYING TO EXPORTS OF PRODUCTS IN GROUP III , IV OR V COVERED BY THE AGREEMENT BETWEEN THE COMMUNITY AND THE HUNGARIAN PEOPLE'S REPUBLIC ON TRADE IN TEXTILE PRODUCTS . THE SAME APPLIES TO THE REFERENCES IN THE SAID ANNEXES I AND II MADE TO ARTICLES OF THE AGREEMENT . "

THE ENTRY INTO FORCE AND DURATION OF THE ARRANGEMENTS PROVIDED FOR BY THE ABOVE CLAUSES SHALL BE THE SAME AS THOSE OF THE AGREEMENT .

I SHOULD BE OBLIGED IF YOU WOULD CONFIRM THAT THE FOREGOING IS IN ACCORDANCE WITH THE CONCLUSIONS REACHED FOLLOWING THE NEGOTIATIONS ON THIS QUESTION BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE HUNGARIAN PEOPLE'S REPUBLIC . "

I HAVE THE HONOUR TO INFORM THE COMMUNITY THAT MY GOVERNMENT CONFIRMS THAT THE FOREGOING IS IN ACCORDANCE WITH THE CONCLUSIONS REACHED FOLLOWING THE NEGOTIATIONS ON THIS MATTER BETWEEN THE HUNGARIAN PEOPLE'S REPUBLIC AND THE EUROPEAN ECONOMIC COMMUNITY .

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

FOR THE GOVERNMENT OF THE HUNGARIAN PEOPLE'S REPUBLIC

ANNEX I

CATEGORY*DESCRIPTION*NIMEXE CODE ( 1978 ) *TABLE OF EQUIVALENCE*

***PIECES/KG*G/PIECE*

115*FLAX OR RAMIE YARN , NOT PUT UP FOR RETAIL SALE*54.03-10 ; 31 ; 35 ; 37 ; 39 ; 50 ; 61 ; 69***

116*FLAX OR RAMIE YARN , PUT UP FOR RETAIL SALE*54.04-10 ; 90***

117*WOVEN FABRICS OF FLAX OR OF RAMIE*54.05-21 ; 25 ; 31 ; 39 ; 51 ; 55 ; 57***

118*BED LINEN OF FLAX OR RAMIE , OTHER THAN KNITTED OR CROCHETED*62.02-15***

119*TABLE LINEN , TOILET LINEN AND KITCHEN LINEN OF FLAX OR RAMIE , OTHER THAN KNITTED OR CROCHETED*62.02-61 ; 75***

120*CURTAINS ( INCLUDING NET CURTAINS ) AND OTHER FURNISHING ARTICLES , OF FLAX OR RAMIE , OTHER THAN KNITTED OR CROCHETED*62.02-01 ; 87***

121*TWINE , CORDAGE , ROPES AND CABLES , PLAITED OR NOT , OF FLAX OR RAMIE*59.04-60***

122*SACKS AND BAGS , OF A KIND USED FOR THE PACKING OF GOODS , USED , OF FLAX , OR SISAL , OTHER THAN KNITTED OR CROCHETED*62.03-91***

123*WOVEN PILE FABRICS AND CHENILLE FABRICS , OF FLAX OR RAMIE , OTHER THAN NARROW WOVEN FABRICS ; SHAWLS , SCARVES , MUFFLERS , MANTILLAS VEILS AND THE LIKE , OF FLAX OR RAMIE , OTHER THAN KNITTED OR CROCHETED*58.04-80***

**61.06-90***

ANNEX II

CATEGORY*DESCRIPTION*YEAR*ARRANGEMENT*UNIT*EEC*D*F*I*BNL* UK*IRL*DK*

115*FLAX OR RAMIE YARN , NOT FOR RETAIL SALE*1978***********

**1979***********

**1980*B**********

**1981***********

**1982***********

116*FLAX OR RAMIE YARN FOR RETAIL SALE*1978***********

**1979***********

**1980*B**********

**1981***********

**1982***********

117*FLAX OR RAMIE FABRICS*1978***416********

**1979***428********

**1980*C*TONNES*441********

**1981***454********

**1982***467********

118*BED LINEN*1978***********

**1979***********

**1980*B**********

**1981***********

**1982***********

119*TABLE LINEN AND TOILET LINEN*1978***********

**1979***********

**1980*B*TONNES*********

**1981***********

**1982***********

120*CURTAINS AND FURNISHINGS*1978***********

**1979***********

**1980*B**********

**1981***********

**1982***********

121*STRING AND CORDAGE*1978***********

**1979***********

**1980*B**********

**1981***********

**1982***********

122*SACKS OF FLAX OF SISAL*1978***********

**1979***********

**1980*B**********

**1981***********

**1982***********

123*OTHER FLAX ARTICLES*1978***********

**1979***********

**1980*B**********

**1981***********

**1982