EXCHANGE OF LETTERS

comprising an understanding relating to the Agreement concluded in 1980 between New Zealand and the European Economic Community on trade in mutton, lamb and goatmeat

A. Letter N° 1

Sir,

I have the honour to refer to the Agreement between New Zealand and the European Economic Community on trade in mutton, lamb and goatmeat signed on 17 October 1980. I now have the honour to reaffirm New Zealand's intention that the marketing of New Zealand lamb within the Community will be conducted on an orderly basis. Moreover, New Zealand confirms that it will, in order to facilitate orderly market development and as a temporary measure for the next two years, ensure that exports to the market areas described below, being considered still to be sensitive markets, will be subject to administrative restraint by New Zealand on the following terms.

New Zealand will ensure that exports to France and Ireland in 1989 will be limited to a quantity of 6 150 tonnes carcase weight equivalent for France and to a quantity of 450 tonnes carcase weight equivalent for Ireland.

In respect of 1990, these limits will be increased by 20 %.

I should be obliged if you would kindly acknowledge receipt of this letter.

Please accept, Sir, the assurance of my highest consideration.

For the Government of New Zealand

B. Letter N° 2

Sir,

I have the honour to acknowledge receipt of your letter of today's date which reads as follows:

'I have the honour to refer to the Agreement between New Zealand and the European Economic Community on trade in mutton, lamb and goatmeat signed on 17 October 1980. I now have the honour to reaffirm New Zealand's intention that the marketing of New Zealand lamb within the Community will be conducted on an orderly basis. Moreover, New Zealand confirms that it will, in order to facilitate orderly market development and as a temporary measure for the next two years, ensure that exports to the market areas described below, being considered still to be sensitive markets, will be subject to administrative restraint by New Zealand on the following terms.

New Zealand will ensure that exports to France and Ireland in 1989 will be limited to a quantity of 6 150 tonnes carcase weight equivalent for France and to a quantity of 450 tonnes carcase weight equivalent for Ireland.

In respect of 1990, these limits will be increased by 20 %.

I should be obliged if you would kindly acknowledge receipt of this letter.'

Please accept, Sir, the assurance of my highest consideration.

For the Council

of the European Communities