AGREEMENT in the form of an Exchange of Letters between the European Community and the Russian Federation concerning the renewal of the Agreement between the European Economic Community and the Russian Federation on trade in textile products initialled on 12 June 1993, as amended by the Agreement initialled on 12 April 1995

Letter from the Council of the European Union

Sir,

I have the honour to refer to the consultations held between our respective Delegations for the purpose of renewing the Agreement between the European Economic Community and the Russian Federation on trade in textile products initialled on 12 June 1993, as amended by the Agreement initialled on 12 April 1995 (hereinafter referred to as 'the Agreement`).

2. As a result of the consultations, both Parties agreed to amend the following provisions of the Agreement:

2.1. The text of the second and third sentence of Article 19, paragraph 1, is replaced by the following text:

'It shall be applicable until 31 December 1996.`

2.2. Annex II which sets out the quantitative restrictions for exports from the Russian Federation to the European Community is replaced for the period 1 January 1996 to 31 December 1996 by Appendix 1 to this letter.

2.3. The Annex to Protocol C which sets out the quantitative restrictions for economic outward processing operations is replaced for the period 1 January 1996 to 31 December 1996 by Appendix 2 to this letter.

2.4. All references made in the Agreement to the 'European Economic Community` shall be read as being made to the 'European Community`.

3. I should be obliged if you could kindly confirm the acceptance of your Government of the foregoing. Should this be the case, this letter and your written confirmation will constitute an Agreement in the form of an Exchange of Letters between the European Community and the Russian Federation. This Agreement shall enter into force on the first day of the month following that in which the European Community and the Russian Federation notify each other that they have completed the necessary internal procedures to this effect. In the meantime, it shall be applied provisionally from 1 January 1996 on the conditions to be specified in an Exchange of Notes (see Appendix 3).

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

For the Council of the European Union

Appendix 1

ANNEX II

COMMUNITY QUANTITATIVE LIMITS APPLICABLE FROM 1 JANUARY 1996 UNTIL 31 DECEMBER 1996 (The full product descriptions of the categories listed in this Annex are to be found in Annex I to the Agreement)

>TABLE>

Appendix 2

ANNEX TO PROTOCOL C

OPT quotas

COMMUNITY QUANTITATIVE LIMITS APPLICABLE FROM 1 JANUARY 1996 UNTIL 31 DECEMBER 1996 (The full product descriptions of the categories listed in this Annex are to be found in Annex I to the Agreement)

>TABLE>

Appendix 3

Exchange of Notes

The Directorate-General I for External Relations of the Commission of the European Communities presents its compliments to the Mission of the Russian Federation to the European Communities and has the honour to refer to the Agreement on Trade in Textile Products between the Russian Federation and the European Community initialled on 12 June 1993, as last amended by the Exchange of Letters initialled on 19 December 1995.

The Directorate-General I wishes to inform the Mission of the Russian Federation that whilst awaiting the completion of the necessary procedures for the conclusion and coming into force of the adapted Agreement, the European Community is prepared to allow the provisions of the Agreement to apply de facto from 1 January 1996. This is on the understanding that either Party may at any time terminate this de facto application of the adapted Agreement provided that one hundred and twenty days' notice is given.

The Directorate-General I would be grateful if the Mission of the Russian Federation would confirm its agreement to the foregoing.

The Directorate-General I for External Relations of the Commission of the European Communities avails itself of this opportunity to renew to the Mission of the Russian Federation to the European Communities the assurance of its highest consideration.

Letter from the Government of the Russian Federation

Sir,

I have the honour to acknowledge receipt of your letter of . . . which reads as follows:

'Sir,

I have the honour to refer to the consultations held between our respective Delegations for the purpose of renewing the Agreement between the European Economic Community and the Russian Federation on trade in textile products initialled on 12 June 1993, as amended by the Agreement initialled on 12 April 1995 (hereinafter referred to as "the Agreement").

2. As a result of the consultations, both Parties agreed to amend the following provisions of the Agreement:

2.1. The text of the second and third sentence of Article 19, paragraph 1, is replaced by the following text:

"It shall be applicable until 31 December 1996."

2.2. Annex II which sets out the quantitative restrictions for exports from the Russian Federation to the European Community is replaced for the period 1 January 1996 to 31 December 1996 by Appendix 1 to this letter.

2.3. The Annex to Protocol C which sets out the quantitative restrictions for economic outward processing operations is replaced for the period 1 January 1996 to 31 December 1996 by Appendix 2 to this letter.

2.4. All references made in the Agreement to the "European Economic Community" shall be read as being made to the "European Community".

3. I should be obliged if you could kindly confirm the acceptance of your Government of the foregoing. Should this be the case, this letter and your written confirmation will constitute an Agreement in the form of an Exchange of Letters between the European Community and the Russian Federation. This Agreement shall enter into force on the first day of the month following that in which the European Community and the Russian Federation notify each other that they have completed the necessary internal procedures to this effect. In the meantime, it shall be applied provisionally from 1 January 1996 on the conditions to be specified in an Exchange of Notes (see Appendix 3).

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

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 the Russian Federation

Appendix 1

ANNEX II

COMMUNITY QUANTITATIVE LIMITS APPLICABLE FROM 1 JANUARY 1996 UNTIL 31 DECEMBER 1996 (The full product descriptions of the categories listed in this Annex are to be found in Annex I to the Agreement)

>TABLE>

Appendix 2

ANNEX TO PROTOCOL C

OPT quotas

COMMUNITY QUANTITATIVE LIMITS APPLICABLE FROM 1 JANUARY 1996 UNTIL 31 DECEMBER 1996 (the full product descriptions of the categories listed in this Annex are to be found in Annex I to the Agreement)

>TABLE>

Appendix 3

Exchange of Notes

The Mission of the Russian Federation to the European Communities presents its compliments to the Directorate-General I for External Relations of the Commission of the European Communities and has the honour to refer to the Note of the Directorate-General I of (date of Note Verbale) regarding the Agreement on Trade in Textile Products between the Russian Federation and the European Community initialled on 12 June 1993, as last amended by the Exchange of Letters initialled on 19 December 1995.

The Mission of the Russian Federation wishes to confirm to the Directorate-General I that whilst awaiting the completion of the necessary procedures for the conclusion and coming into force of the adapted Agreement, the Government of the Russian Federation is prepared to allow the provisions of the Agreement to apply de facto from 1 January 1996. This is on the understanding that either Party may at any time terminate this de facto application of the adapted Agreement provided that one hundred and twenty days' notice is given.

The Mission of the Russian Federation to the European Communities avails itself of this opportunity to renew to the Directorate-General I for External Relations of the Commission of the European Communities the assurance of its highest consideration.