AGREEMENT in the form of an exchange of letters amending the Agreement between the European Economic Community and Hong Kong on trade in textile products

Letter N° 1

Sir,

1. I have the honour to refer to the consultations held on 15 and 16 July 1991 between our respective delegations for the purpose of amending the Agreement on trade in textile products between the European Economic Community and Hong Kong, initialled on 2 October 1986 and applied since 1 January 1987.

2. The Parties took account of the fact that the extension of the Arrangement regarding international trade in textiles and its Protocol of 1986 is currently under discussion in Geneva pending the conclusion of the Uruguay Round.

3. As a result of these consultations, both Parties agreed to amend Article 16 (1) of the above Agreement so as to extend the period of application of all the provisions of the Agreement for one more year, i.e. until 31 December 1992. Consequently, the Parties also agreed to amend Annex II of the Agreement as regards the quantitative limits for exports from Hong Kong to the Community of the textile products referred thereto for the year 1992. The modified Annex II is appended to this letter (Appendix).

4. The Parties also agreed that as regards Article 12 of the Agreement, the percentage of inter-regional transfers for the year 1992 shall be determined at a later stage.

5. Both Parties agreed that this extension of the Agreement shall enter into force on 1 January 1992 and shall remain in force until 31 December 1992. The Parties agreed that this Agreement shall be applied provisionally from 1 January 1992.

6. I should be obliged if you would kindly confirm the acceptance of your Government to the foregoing.

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

For the Council

of the European Communities

Appendix

ANNEX II

(The full product descriptions of the categories listed in this Annex are to be found in Annex I of the Agreement)

> TABLE POSITION>

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Note: The numbers or the asterisk in brackets are references to the footnotes in Annex II of the Agreement for the appropriate category respectively.

Letter N° 2

Sir,

I have the honour to acknowledge receipt of your letter of 16 Juli 1991, which reads as follows:

'1. I have the honour to refer to the consultations held on 15 and 16 July 1991 between our respective delegations for the purpose of amending the Agreement on trade in textile products between the European Economic Community and Hong Kong, initialled on 2 October 1986 and applied since 1 January 1987.

2. The Parties took account of the fact that the extension of the Arrangement regarding international trade in textiles and its Protocol of 1986 is currently under discussion in Geneva pending the conclusion of the Uruguay Round.

3. As a result of these consultations, both Parties agreed to amend Article 16 (1) of the above Agreement so as to extend the period of application of all the provisions of the Agreement for one more year, i.e. until 31 December 1992. Consequently, the Parties also agreed to amend Annex II of the Agreement as regards the quantitative limits for exports from Hong Kong to the Community of the textile products referred thereto for the year 1992. The modified Annex II is appended to this letter (Appendix).

4. The Parties also agreed that as regards Article 12 of the Agreement, the percentage of inter-regional transfers for the year 1992 shall be determined at a later stage.

5. Both Parties agreed that this extension of the Agreement shall enter into force on 1 January 1992 and shall remain in force until 31 December 1992. The Parties agreed that this Agreement shall be applied provisionally from 1 January 1992.

6. I should be obliged if you would kindly confirm the acceptance of your Government to the foregoing.`

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

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

For the Government of Hong Kong

Appendix

ANNEX II

(The full product descriptions of the categories listed in this Annex are to be found in Annex I of the Agreement)

>TABLE>

>TABLE>

Note: The numbers or the asterisk in brackets are references to the footnotes in Annex II of the Agreement for the appropriate category respectively.

Exchange of notes

The Special Representative of Hong Kong to the European Communities presents his compliments to the Directorate-General for External Relations of the Commission of the European Communities and has the honour to refer to the Agreement in textile products negotiated between Hong Kong and the Community, initialled on 2 October 1986 and applied since 1 January 1987, as extended by the exchange of letters initialled on 16 July 1991.

The Special Representative wishes to inform the Directorate-General that whilst awaiting the completion of the necessary procedures for the conclusion and the coming into force of the extended Agreement, the Government of Hong Kong is prepared to allow the provisions of the extended Agreement to apply de facto from 1 January 1992 if the Community is disposed to do likewise. This is on the understanding that either Party may at any time terminate this de facto application of the extended Agreement provided that 120 days' notice is given.

The Special Representative would be grateful if the Community would confirm its agreement to the foregoing.

The Special Representative of Hong Kong to the European Communities avails himself of this opportunity to renew to the Directorate-General for External Relations the assurance of his highest consideration.

Exchange of notes

The Directorate-General for External Relations of the Commission of the European Communities presents its compliments to the Special Representative of Hong Kong with the European Communities and has the honour to refer to the Special Representative's note regarding the Agreement in textile products negotiated between Hong Kong and the Community and initialled on 2 October 1986 and applied since 1 January 1987, as extended by the exchange of letters initialled on 16 July 1991.

The Directorate-General wishes to confirm to the Special Representative that whilst awaiting the completion of the necessary procedures for the conclusion and the coming into force of the extended Agreement, the Community is prepared to allow the provisions of the Agreement to apply de facto from 1 January 1992. This is on the understanding that either Party may at any time terminate this de facto application of the extended Agreement provided that 120 days' notice is given.

The Directorate-General for External Relations avails itself of this opportunity to renew to the Special Representative of Hong Kong to the European Communities the assurance of its highest consideration.

Note verbale

The Directorate-General for External Relations of the Commission of the European Communities presents its compliments to the Special Representative of Hong Kong to the European Communities and has the honour to refer to the Agreement on trade in textile products between the Community and Hong Kong, initialled on 2 October 1986 and applied since 1 January 1987, as amended by the exchange of letters initialled on 16 July 1991.

With reference to paragraph 4 of the abovementioned exchange of letters, the Directorate-General has the honour to inform the Special Representative that it is now in a position to propose the following paragraph:

'The percentage of transfers between regional quota-shares referred to in Article 12 of the Agreement for the year 1992 shall be of 40 %.

It is understood that if, as a result of the application of the above percentage, serious difficulties, following significant changes in the pattern of trade, occur in certain regions of the Community, both Parties shall hold consultations without delay with a view to remedying the situation.`

The Directorate-General for External Relations would be grateful if the Special Representative would confirm his acceptance of the above adaptation of the Agreement, as agreed at the time of the initialling of the said exchange of letters.

The Directorate-General for External Relations of the Commission of the European Communities avails itself of this opportunity to renew to the Special Representative of Hong Kong to the European Communities the assurance of its highest consideration.

Note verbale

The Special Representative of Hong Kong to the European Communities presents his compliments to the Directorate-General for External Relations of the Commission of the European Communities and has the honour to refer to the Agreement between the Community and Hong Kong on trade in textile products, initialled on 2 October 1986 and applied since 1 January 1987, and extended by the exchange of letters initialled on 16 July 1991.

The Special Representative confirms his acceptance of the contents of the Directorate-General's Note verbale No 019053 of 25 October 1991.

The Special Representative of Hong Kong to the European Communities avails himself of this opportunity to renew to the Directorate-General for External Relations of the Commission of the European Communities the assurance of his highest consideration.