Exchange of letters between the European Economic Community ('The Community`) and Hungary concerning transit

A. Letter from Hungary

Sir,

During the negotiations of the Europe Agreement between the Communities and their Member States and Hungary, the following agreement was reached:

1. the Parties to the Europe Agreement shall not take any measures which would prejudice the situation resulting from the application of the existing bilateral agreements between the Member States of the Community and Hungary;

2. (a) more particularly, within the framework of a global solution to the problems of transit through Hungary for those Member States of the Community most directly concerned, Hungary hereby grants in 1992, in addition to the existing quota granted prior hereto pursuant to the bilateral agreements for 1991, permits in the following way:

>TABLE>

All untaxed and taxable permits are of a round-trip character. For 1993 and 1994 the total number of untaxed and taxable permits will be increased annually by 5 % so that the additional permits amount in 1993 to 300 untaxed and 6 160 taxable permits and in 1994 to 615 untaxed and 7 168 taxable permits. The number of additional third country permits remains 100 in each of the years 1993 and 1994;

(b) the abovementioned rate of increase of 5 % applied in 1993 and 1994 for untaxed and taxable permits is subject to review, while maintaining the principle of standstill, if a bilateral transport agreement between the Community and Hungary enters into force before the end of 1994. In case such an agreement can enter into force only at a later date, the abovementioned permits will be subject to negotiation, while maintaining the principle of standstill.

I should be obliged of you would confirm the agreement of the Community to the contents of this letter.

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

For the Government of Hungary

B. Letter from the Community

Sir,

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

'Sir,

During the negotiations of the Europe Agreement between the Communities and their Member States and Hungary, the following agreement was reached:

1. the Parties to the Europe Agreement shall not take any measures which would prejudice the situation resulting from the application of the existing bilateral agreements between the Member States of the Community and Hungary;

2. (a) more particularly, within the framework of a global solution to the problems of transit through Hungary for those Member States of the Community most directly concerned, Hungary hereby grants in 1992, in addition to the existing quota granted prior hereto pursuant to the bilateral agreements for 1991, permits in the following way:

>TABLE>

All untaxed and taxable permits are of a round-trip character. For 1993 and 1994 the total number of untaxed and taxable permits will be increased annually by 5 % so that the additional permits amount in 1993 to 300 untaxed and 6 160 taxable permits and in 1994 to 615 untaxed and 7 168 taxable permits. The number of additional third country permits remains 100 in each of the years 1993 and 1994;

(b) the abovementioned rate of increase of 5 % applied in 1993 and 1994 for untaxed and taxable permits is subject to review, while maintaining the principle of standstill, if a bilateral transport agreement between the Community and Hungary enters into force before the end of 1994. In case such an agreement can enter into force only at a later date, the abovementioned permits will be subject to negotiation, while maintaining the principle of standstill.

I should be obliged if you would confirm the agreement of the Community to the contents of this letter.`

I have the honour to confirm that the European Community is in agreement with the contents of this letter.

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

On behalf of the Community