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A. Letter from the Communities

Brussels, . . . . . .

Sir,

We have the honour to refer to the negotiations which have taken place between the Community and the Republic of Iceland concerning the arrangements applicable in the period from 1 January to 28 February 1986 to trade between Spain and Portugal, on the one hand, and Iceland, on the other, consequent upon the accession of Spain and Portugal to the European Communities which will take effect on 1 January 1986.

As there is a possibility that the adjustments to the Agreements and arrangements, including Exchanges of Letters, existing between the European Economic Community, the Member States of the European Coal and Steel Community and the European Coal and Steel Community, on the one hand, and your country, on the other, may not have been concluded by the date of accession, we hereby confirm our proposal that we should agree that, in so far as the Community is concerned, during the period referred to above, the arrangements applicable to trade between Spain and Portugal, on the one hand, and your country, on the other, shall continue to be those which apply on this day, without prejudice to the outcome of the negotiations in progress.

The Republic of Iceland will maintain in respect of Spain and Portugal the trade arrangements which apply on this day, without prejudice to the outcome of the negotiations in progress.

We should be obliged if you would confirm that your Government is in agreement with the above.

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

1.2 // On behalf of the Commission of the European Communities // On behalf of the Member States of the European Coal and Steel Community And on behalf of the Council of the European Communities B. Letter from Iceland

Brussels, . . . . . .

Sirs,

In your letter of today's date you informed me as follows:

'We have the honour to refer to the negotiations which have taken place between the Community and the Republic of Iceland concerning the arrangements applicable in the period from 1 January to 28 February 1986 to trade between Spain and Portugal, on the one hand, and Iceland, on the other, consquent upon the accession of Spain and Portugal to the European Communities which will take effect on 1 January 1986.

As there is a possibility that the adjustments to the Agreements and arrangements, including Exchanges of Letters, existing between the European Economic Community, the Member States of the European Coal and Steel Community and the European Coal and Steel Community, on the one hand, and your country, on the other, may not have been concluded by the date of accession, we hereby confirm our proposal that we should agree that, in so far as the Community is concerned, during the period referred to above, the arrangements applicable to trade between Spain and Portugal, on the one hand, and your country, on the other, shall continue to be those which apply on this day, without prejudice to the outcome of the negotiations in progress.

The Republic of Iceland will maintain in respect of Spain and Portugal the trade arrangements which apply on this day, without prejudice to the outcome of the negotiations in progress.

We should be obliged if you would confirm that your Government is in agreement with the above.'

I have the honour to confirm the agreement of my Government with the contents of your letter.

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

On behalf of the Government

of the Republic of Iceland