EXCHANGE OF LETTERS

between the European Community and the United States of America on rice prices

A. Letter from the European Community

Brussels, 22 December 1995

Sir

During our recent discussions on the operation of the Community rules for calculating the Community import duties for rice, we have reviewed data relating to the market situation during the 1995/96 marketing year.

In the light of these discussions, the European Community will substitute, with effect from 1 January 1996, for the 'representative price` currently used for determining these duties on husked parboiled rice and husked rice for the remainder of the 1995/96 marketing year, the average of the price for No 1 brown parboiled 4/88 % rice and the currently used price (No 2 brown 4/73 % rice) as reported in the USDA weekly Rice marked news. This 'representative price` will be reviewed with the United States Government during the consultations for establishing the cumulative recovery system as referred to in the exchange of letters on the grains settlement.

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

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

On behalf of

the Council of the European Union

B. Letter from the United States

Brussels, 22 December 1995

Sir

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

'During our recent discussions on the operation of the Community rules for calculating the Community import duties for rice, we have reviewed data relating to the market situation during 1995/96 marketing year.

In the light of these discussions, the European Community will substitute, with effect from 1 January 1996, for the "representative price" currently used for determining these duties on husked parboiled rice and husked rice for the remainder of the 1995/96 marketing year, the average of the price for No 1 brown parboiled 4/88 % rice and the currently used price (No 2 brown 4/73 % rice) as reported in the USDA weekly Rice market news. This "representative price" will be reviewed with the United States Government during the consultations for establishing the cumulative recovery system as referred to in the exchange of letters on the grains settlement`.

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

For the Government of the United States of America