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ARTICLE 1

1 . THE UNITED KINGDOM IS AUTHORIZED , AS A TRANSITIONAL ARRANGEMENT , TO IMPORT FROM NEW ZEALAND CERTAIN QUANTITIES OF BUTTER AND CHEESE , ON THE FOLLOWING TERMS .

2 . THE QUANTITIES REFERRED TO IN PARAGRAPH 1 SHALL BE :

( A ) IN RESPECT OF BUTTER , FOR THE FIRST FIVE YEARS :

1973 165,811 METRIC TONS

1974 158,902 METRIC TONS

1975 151,994 METRIC TONS

1976 145,085 METRIC TONS

1977 138,176 METRIC TONS

( B ) IN RESPECT OF CHEESE :

1973 68,580 METRIC TONS

1974 60,960 METRIC TONS

1975 45,720 METRIC TONS

1976 30,480 METRIC TONS

1977 15,240 METRIC TONS

THE COUNCIL , ACTING BY A QUALIFIED MAJORITY ON A PROPOSAL FROM THE COMMISSION , MAY MAKE ADJUSTMENTS BETWEEN THOSE QUANTITIES OF BUTTER AND CHEESE , PROVIDED THAT THE TONNAGE EXPRESSED AS MILK EQUIVALENT CORRESPONDING TO THE TOTAL QUANTITIES LAID DOWN FOR THOSE TWO PRODUCTS FOR THE YEAR IN QUESTION REMAINS UNALTERED .

3 . THE QUANTITIES OF BUTTER AND CHEESE SPECIFIED IN PARAGRAPH 2 SHALL BE IMPORTED INTO THE UNITED KINGDOM AT A PRICE THE OBSERVANCE OF WHICH MUST BE GUARANTEED AT THE C.I.F . STAGE BY NEW ZEALAND . THAT PRICE SHALL BE FIXED AT A LEVEL WHICH ENABLES NEW ZEALAND TO REALIZE A PRICE REPRESENTING THE AVERAGE PRICE OBTAINED BY THAT COUNTRY ON THE UNITED KINGDOM MARKET DURING 1969 , 1970 , 1971 AND 1972 .

4 . THE PRODUCTS IMPORTED INTO THE UNITED KINGDOM IN ACCORDANCE WITH THE PROVISIONS OF THIS PROTOCOL MAY NOT BECOME THE SUBJECT OF INTRA-COMMUNITY TRADE OR OF RE-EXPORTATION TO THIRD COUNTRIES .

ARTICLE 2

1 . SPECIAL LEVIES SHALL BE APPLIED TO IMPORTS INTO THE UNITED KINGDOM OF THE QUANTITIES OF BUTTER AND CHEESE SPECIFIED IN ARTICLE 1 . ARTICLE 55 ( 1 ) ( B ) OF THE ACT OF ACCESSION SHALL NOT BE APPLICABLE .

2 . THE SPECIAL LEVIES SHALL BE FIXED ON THE BASIS OF THE C.I.F . PRICE REFERRED TO IN ARTICLE 1 ( 3 ) AND OF THE MARKET PRICE OF THE PRODUCTS IN QUESTION WITHIN THE UNITED KINGDOM , AT A LEVEL SUCH AS TO ALLOW THE QUANTITIES OF BUTTER AND CHEESE TO BE EFFECTIVELY MARKETED WITHOUT PREJUDICING THE MARKETING OF COMMUNITY BUTTER AND CHEESE .

ARTICLE 3

THE COUNCIL , ACTING BY A QUALIFIED MAJORITY ON A PROPOSAL FROM THE COMMISSION , SHALL ADOPT THE MEASURES NECESSARY FOR IMPLEMENTING ARTICLES 1 AND 2 .

ARTICLE 4

THE COMMUNITY SHALL CONTINUE ITS EFFORTS TO PROMOTE THE CONCLUSION OF AN INTERNATIONAL AGREEMENT ON MILK PRODUCTS SO THAT , AS SOON AS POSSIBLE , CONDITIONS ON THE WORLD MARKET MAY BE IMPROVED .

ARTICLE 5

1 . THE COUNCIL SHALL , DURING 1975 , REVIEW THE SITUATION AS REGARDS BUTTER IN THE LIGHT OF PREVAILING CONDITIONS AND OF SUPPLY AND DEMAND DEVELOPMENTS IN THE MAJOR PRODUCING AND CONSUMING COUNTRIES OF THE WORLD , PARTICULARLY IN THE COMMUNITY AND IN NEW ZEALAND . DURING THAT REVIEW , AMONG THE CONSIDERATIONS TO BE TAKEN INTO ACCOUNT SHALL BE THE FOLLOWING :

( A ) PROGRESS TOWARDS AN EFFECTIVE WORLD AGREEMENT ON MILK PRODUCTS , TO WHICH THE COMMUNITY AND OTHER IMPORTANT PRODUCING AND CONSUMING COUNTRIES WOULD BE PARTIES ;

( B ) THE EXTENT OF NEW ZEALAND'S PROGRESS TOWARDS DIVERSIFICATION OF ITS ECONOMY AND EXPORTS , IT BEING UNDERSTOOD THAT THE COMMUNITY WILL STRIVE TO PURSUE A COMMERCIAL POLICY WHICH DOES NOT RUN COUNTER TO THIS PROGRESS .

2 . APPROPRIATE MEASURES TO ENSURE THE MAINTENANCE AFTER 31 DECEMBER 1977 OF EXCEPTIONAL ARRANGEMENTS IN RESPECT OF IMPORTS OF BUTTER FROM NEW ZEALAND , INCLUDING THE DETAILS OF SUCH ARRANGEMENTS , SHALL BE DETERMINED BY THE COUNCIL , ACTING UNANIMOUSLY ON A PROPOSAL FROM THE COMMISSION , IN THE LIGHT OF THAT REVIEW .

3 . AFTER 31 DECEMBER 1977 , THE EXCEPTIONAL ARRANGEMENTS LAID DOWN FOR IMPORTS OF CHEESE MAY NO LONGER BE RETAINED .