ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(73)480
Vol.1973/0084

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COMMISSION OFTHEEUROPEANCOMMUNITIES
COM(73)480final
Brussels,29March1973
RECOMMANDATION
FORACOUNCILDECISION
concludinganAgreementbetweentheEuropeanEco­
nomicCommunityandtheSocialistFederalRepublic
ofYugoslaviaontradeincottontextiles
(submittedtotheCouncilbytheCommission)
C0II(73)480final

DRAFT REOOClAIIDATI OH
FOR ACOIMCIL DECISIOH
concluding anagreement between theEuropean
Economic Community andtheSocialist Federal
Republic ofYugoslavia ontrade incotton textiles

EXPLWATORTKEriORfflDUM
1. When itsoffer regarding generalized ,tariff preferences wasinthe
course ofpreparation ,theCommunity considered ,asregards cotton textiles
covered bytheLong-term Arrangement regarding International Trade inCotton
Textiles (hereinafter referred toasthe "Geneva Arrangement "),andthesub­
stitute products onthe "conditional list "oftheKennedy Round ,that the
tariff preferences would begranted tothe ,countries benefiting from the
generalized preferences andsignatories totheLong-term Arrangement ,this
being fortheduration oftheArrangement .However ,initsrevised offer ,
theCommunity declared that tariff preferences could also begranted in
respect ofthese products andforthe sane period tobenefiting third coun­
tries notbelonging totheGeneva Arrangement ,which gave with respect to
theCommunity "similar undertakings "tothose which exist under theLong-
term Arrangement .
2. When Yugoslavia requested theopportunity ofbenefiting from
preferences fortheproducts inquestion ,theCommission decided that the
similar undertakings tobeasked forcould beembodied inabilateral
agreement ofthesame type astheagreement negotiated bytheCommunity
concerning cotton textiles with seven other supplier countries under Article
4oftheGeneva Arrangement •Consequently theCommission submitted tothe
Council areconmandation foradecision giving theCommission authority to
open negotiations with Yugoslavia fortheconclusion ofsuch anagreement .
3. Inadecision of27June 1972 ,theCouncil authorized theCommission
toopen negotiations with Yugoslavia with theaimofconcluding anagreement
onthe trade incotton textiles .
Inaccordance with this decision and inconsultation with the
Article 113Committee ,theCommission acting onbehalf oftheCommunity
conducted negotiations with theDelegation oftheSocialist Federal Republic
ofYugoslavia fortheconclusion ofsuch anagreement .Following these
/.

-2-
negotiations ,whichendedon1March1973»adraftAgreementwasdramtip.
Theheadsofthetwodelegations agreedthatthisdraftconformedtothe
resultsofthediscussions .
4.TheCommissionconsidersthatthisdraftAgreementrepresents
aresultwhichisacceptabletotheCommunity.Consequentlyitrecommends
totheCouncilthatthelatterapprovetheresultofthenegotiations and
give,assoonaspossible,anopiniononthedraftDecisionannexedhereto,
sincethepossibilityforYugoslaviaofbenefitingfromgeneralizedprefe­
rencesforcottontextilesandothertextilestreatedassuchissubject
totheconclusionofthisAgreement.

DECISION OPTHECOUNCIL
concludinganagreementbetween ,theEuropeanCommunity
andtheSocialistFederalRepublicofYugoslavia on
tradeincottontextiles
THECOUIICILOFTHEEUROPEANCOMMUNITIES ,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
andinparticularArticle113thereof;
Havingregardtotherecommendation oftheCommission !
WhereasitisnecessarytoconcludetheAgreementontradeincottontex­
tilesnegotiatedbetweentheCommissionoftheEuropeanCommunities and
theSocialistFederalRepublicofYugoslavia ?

HAS DECIDED ASFOLLOWS :
Article 1
AnAgreement ontrade mcotton textiles ishereby concluded inthe
name oftheEaropeanEconomic Community with theSocialist Federal Republic
ofYugoslavia .
Thetext ofthis Agreement isannexed tothis Decision .
Article 2
ThePresident oftheCouncil ishereby authorized todesignate the
person empowered tosign theAgreement andtoconfer onhimthepowers
required inorder tobind theCommunity .
Done atBrussels ,
For theCouncil ,
The President

AGREENT
between the
EUROPEAN ECONOMIC COIfclUNITY
and the
SOCIALIST FEDERAL REPUBLIC OPYUGOSLAVIA
ontrade incotton textiles

THECOUNCILOFTHEEUROPEANCOIIMUNITIES ,
ontheonehand,and
THEGOVEHKOTJT OFTHESOCIALISTFEDERALREPUBLICOPYUGOSLAVIA,
ontheotherhand,
DESIRINGtoensuretheorderlydevelopment oftradeincottontextiles
betweentheEuropeanCommunity,hereinaftercalledthe"Community"and
Yugoslavia ,
AWAREoftherightsandobligations oftheContractingPartiesunderthe
GeneralAgreementonTariffandTrade, 1
AWAREthatthefollowingprovisionsareintendedtosolvetheproblems
relatingtotradeincottontextilesbetweenYugoslaviaandtheCommunity
andmustnotbeconsideredassuitableforapplicationinotherfields,
HAVE.DECIDED,inaspiritofmutualcooperation ,toconcludethisAgreement
andtothisendhavedesignatedasPlenipotentiaries :
THECOUNCIL 01?TIIEEUROPEANC0:3!UNITIES :
THEGOVERN?1ENTOFTHESOCIALIST FEDERALREPUBLIC OFYUGOSLAVIA :
WHOHAVEAGREEDUPONTHEFOLLOWING PROVISIONS :

Article1
1.TheprovisionsofthisAgreementshallapplytothecottontextiles
originatinginanddispatchedfromYugoslaviaandlistedinAnnexI.

Article2
Yugoslaviaundertakestoapplythenecessarymeasurestoensurethat
itsexportsofcottontextilestotheCommunitydonotexceedtheceilings
fixedinArticle3*
TheCommunityundertakes ,insofarastheseexportsdonotexceedthe
quantitative ceilingsfixedinArticle3,nottointroducenewquantitative
restrictions onimportsofcottontextilesoriginatinginanddispatched
fromYugoslaviaandtosuspendtheapplication ofexistingrestrictions ,.

Article3
1.TheglobalceilingwhichisthesubjectofthisAgreementshallbe
17,280metrictonsperyear,outwardprocessingtrafficbeingexcludedfrom
thistotalquantity.
■
2.Thistotalquantityperyearshallbeapportioned asfollowsbetween
twogroupsofcategoriesofproducts:
Metrictons
10,406
3,794
14,200
3,080
3.Inordertopreventexcessiveconcentration oftradeoncertainpro­
ducts,theContractingPartiesmayagreeonspecificceilingsbysub-catego­
rieswithintheceilingssetoutinparagraph2.
If,inthecourseofoneofthetwelve-nonth periods,theCommunity
notesarapidandsubstantialgrowthinimportsofcertainsub-categories
ofproductswhicharenotcoveredbyspecificceilings,itmayrequestthat
aspecificceilingbefixed.Wheresucharequestismade,consultations
shallbeheldforthwithbetweenthetwopartiestoagreeuponthelevelof
aspecificceilingfortheproductinquestion.GroupI(Cottonfabrics,unbleached orbleached,
whetherornotmercerised)
-intendedforinternalconsumption
-intendedforreexport
total
GroupII(Othercottonfabrics,made-uparticles
andmiscellaneous articlesofcotton)

I
Article4
1.Yougoslavia maytransferupto10%ofthequantitiesfixedforGroupII
toGroupI.
Unusedportionsofthospecificceilingsmay"betransferredtoanother
specificceilingprovidedthequantitythustransferreddoesnotexceed10%
ofthespecificceilingtowhichthetransferismade,ortoothersub­
categorieswithinthesamecategorynotsubjecttospecificceilings,
2.Portionsofoneoftheceilingsforthetwogroupsofcategoriesnot
usedduringanytwelve-month periodmaybecarriedoverandaddedtothe
ceilingforthesamegroupinthefollowingtwelve-month perioduptoa
maximunof10$oftheceilinginquestion,providednosuchtransferhas
beeneffectedorcarryoverbeenmadetoanotherhead.
3.Withinalimitof10$ofeachoftheceilingsagreedupon,advance
deliveriesshallbeauthorizedbytheCommunityfromtheceilingestablished
forthefollowingtwelve-monthperiod,iftheYugoslavGovernmentsorequests
ingoodtime.TheYugoslavGovernmentshall,hotirever,endeavourtoensure
thatexportsofcottontextilesofallcategoriesarespacedoutasregu­
larlyaspossibleovereachofthetwelve-month periods,dueaccountbeing
taken,inparticular ,ofseasonalfactors.Aaountsdeliveredinadvanceshall
bedeductedfromtheceilingsforthefollowingtwelve-month period.

Article 5
Thetwoparties agree that theceilings shown intheAgreement shall
"bemanaged ,under asystem ofdouble checking .

Article6
TheContractingPartiesshallcommunicatetooneanotheralluseful
information onthetradebetweentheCommunityandYugoslaviaintextile
products.Forthispurposethoyshallapplytheirownclassification and
shallcooperateinordertofacilitatecomparisonoftheinformation
supplied.

Article 7
TheContracting Parties shall cooperate intaking theappropriate
measures toensure that theprovisions ofthis Agreement arenot avoided
through theuse ofpractices involving reexportation orre-routing .
When theCommunity hasreason tosuspect thet imports from Yougoslavia
didnotoriginate inthat country ,itmaycall forconsultations with Yugo­
slavia tofacilitate thedetermination oftheorigin oftheproducts in
question .

Articie8
1.IfimportsintotheCommunityofcertaintextilesoffibresindirect
competition withcottoncauseorthreatentocauseadisturbance ofthe
market,andinparticular .whentheseimportsincreaseinsuchawaythat
theprovisionsofthisAgreementcouldbeevaded,theCommunitymayask
Yugoslaviaforconsultations inordertoagreeonmeasurestobetakento
remedythissituation.Therequestforconsultations shallbeaccompanied
byadetailedandsubstantiated statementofthereasonsandthejustifi­
cationforitspresentation .
2.Iftheseconsultations donotresultinanagreementwithinthe
ι
periodof60daysfollowingtherequest,theCommunityshallbeentitled
totakeprotectivemeasuresasprovidedforinArticleIIIparagraph2
oftheTradeAgreementbetweentheCommunityandYugoslavia.

Article9
ShouldoneofthePartiesinformtheotherthattheapplication of
theAgreementhasgivenrisetodifficulties whichjeopardisethemainte­
nanceofexistingcommercialrelations "betweenimportersandexporters,
thetwopartiesshalltakeallthenecessarymeasurestoensurethatthese
commercialrelationsaremaintained .

Article10
Thetwopartiesundertaketoconsulteachother,attherequestof
either,onallproblemsarisingfromtheimplementation oftheAgreement.

Article11
1.ThisAgreementshallbeconcludedforaperiodofoneyearfrom
1January1973*
Itshallenterintoforceonthefirstdayofthemonthfollowing
thedateofitssigning.Itstermofvalidityshallbeextendedforone
yearifneitherofthepartieshasdenounceditonemonthbeforeits
expiry.
2.Eachpartyreservestherighttoadapttheprovisionsinthelight
oftheresultsoffuturemultilateral tradenegotiations .
3.TheAnnexestothisAgreementshallformanintegralpartthereof.

Article12
ThisAgreementshallbedrawnupintwocopiesintheGerman,English,
Danish,French,Italian,DutchandSerbo-Croat languages,eachofthese
textsbeingequallyauthentic.

ANNEXI
LISTOPCOTTONTEXTILEPRODUCTS
REFERRED TOESTARTICLEIOPTHEAGREEMENT
"Cottontextiles"shall "beconsideredtocovertheproducts,listed
"below,inwhichcottonrepresentsmorethan5^°("byweight)ofthe
fibrecontent,withtheexceptionoffabricsmanufactured bycrafts­
menonhandlooms.

Group
ofcate­
goriesCate­
goriesSub-
cate–•
goriesDescription ofproducts
GROUPI COTTONFABRICS,UKBLEACHED ORBLEACHED,
MERCERIZED ORFOT
B •COTTONFABRICS,UKBLEACHED
B1Terrytowellingandsimilarterryfabrics
B2Wovenfabricsotherthangauzeorteriytowelling
andsimilarterryfabrics,containinglessthan
byweightofcotton
B3Wovenfabricsotherthangauzeorterry
towellingandsimilarterryfabrics,containing
atleast85c/obyweightofcotton,plainweave,
weighingmorethan^0butnotmorethan130g
persquaremetre,ofawidthofmorethan115
cmbutnotmorethanI65ca,onlywithayarn
numberedlessthan55»000m/kg(Englishnumber
32)
B4Wovenfabricsotherthangauzeorterrytowelling
andsimilarterryfabrics,containingatleast
85i"byweightofcotton,plainweave,weighing
notmorethat130gpersquaremetre,otherthan
thoseunderB3
B5wovenfabricsotherthangauzeorterrytowelling
andsimilarterryfabrics,containingatleast
83%byweightofcotton,plainweave,weighing
morethan130butnotmorethan200gpersquare
metre,ofawidthofatleast85cmbutnotmore
than115cn
B6VJovenfabricsotherthangauzeorterrytowelling
andsimilarteriyfabrics,containingatleast
85$byweightofcotton,plainweave,weighing
persquaremetremorethan130gbutnotmore
than200gofawidthofmorethan115cm
./•
I

°r0U?Cate-SvÛ0~ofcate-.cate- Description ofproductsgories . **gories ■ gones .
GROUPI B7Wovenfabricsotherthangauzeorterrytowelling
andsimilarterryfabrics,containingatleast
8byweightofcotton,ofawidthofatleast
85cm,otherthanplainweave
B8Otherwovenfabrics
C1COTTOHFABRICSOTHERTHANUNBLEACHED
Bleached,mercerized ornot
GROUPII OTHERCOTTOHFABRICS.M/J3E-UPARTICLES/JTD
MISCELLANEOUS ARTICLES OFCOTTON
C2Gauzeotherthanunbleached orbleached
C3Terrytoxtfellingandsimilarterryfabrics,othor
thanunbleachedorbleached
C4Wovenpilefabricsandchenillefabrics(other
thanterrytowellingorsimilarterryfabricsof
cottonfallingwithinHeadingNo.55*08an&
fabricsfallingwithinHeadingNo.5S»05)
C5Wovenfabricsotherthangauzeorterry
towellingandsimilarterryfabrics,dyed
C6Wovenfabricsotherthangauzeorterry
towellingandsimilarterryfabrics,printed
C7Wovenfebricsotherthangauzeorterry
towellingandsimilarterryfabrics,madewith
yarnsofvariouscolours
/.

Group
ofcate­
goriesCate­
goriesSub-
cate-
goriesDescription ofproducts
D HOUSEHOLD MADE-UPARTICLES OFC0TT01T
D1Bedlinen
D2Tablelinen
D3Terrytoiletlinenandterrykitchenlinen
D4Otherhouseholdarticles
E ■ ..COTTONCLOTHING
.E_1Gloves,mittensandmitts,knittedor
crocheted,notelasticorrubberized
E2Undergarments ,knittedorcrocheted,notelastic
orrubberized
E3Outergarmentsandotherarticles,knittedor
crocheted,notelasticorrubberized.Articles
otherthanknittedorcrochetedfabricsand
articlesthereof,elasticorrubberized
E4Woventrousersandbreeches,formenandboys
E5Otherwovenoutergarmentsformenandboys
E6Wovenoutergarmentsforwomen,girlsandinfants
E7Shirtsandbodicesformenandboys
E8Otherwovenundergarments formenandboys

Group
ofcate­
goriesCate­
goriesSub-
cate-
goriesDescription ofproducts
GROUPII E9Wovenundergarraents forwomen,girlsand
infants
E10Hanakerchiefs
E11Otherarticlesofapparelandclothing
accessories
MISCELLANEOUS C0TT0NFA3RICSAHDÌÌADE-UP
ARTICLES
F1Travellingrugsandolankets
P2Floorcloths,dish-cloths ,dusters,
andthelike
F3PneumaticEattresses
F4Other

ANNEX
Letter No.1
Letter No.2
Letter No.3
Letter No.4
Letter No.5
Letter No.6
Letter No.^
Letter No.8Double checking
Re-exports
Transit and free trade
105$ Clause
Substitute products
Territory ofapplication
Consultations
Development oftrade

LHTTERNo.1
Brussels.
Madame,
Attheconclusionofthenegotiations betweentheYugoslavGovern­
mentandtheCommunitywhichledthisdaytothesignatureoftheAgreement
oncottontextiles,thetwopartiesagreed,onthefollowing :
Theadministration ofcottontextilesimportsfromYugoslaviawill
bebasedonasystemofdoublechecking.
TheauthoritiesoftheMemberStatesoftheCommunitywill,auto­
maticallyandwithoutdelay,acceptimportsofcottontextileproductson
submissionoftheimporter'sapplicationtogetherwiththeoriginalexport
licence.TheseexportlicenceswillbeissuedbytheYugoslavauthorities
uptothetotalamountoftheagreedceilings.
TheexportlicenceissuedbytheYugoslavauthoritiesshallbeap­
plicabletotheproductsreferredtoinArticle1oftheAgreement.

Theexportlicencemustspecify:
1.destination
2.sériainumber
3.importer'snameandaddress
4.exporter'snameandaddress
5.netweight(inkilogramsormetrictons)andvalue
6.categoryanddescriptionofproduct
7.certificateissuedbytheYugoslavauthorities showingthatthe
quantityhasbeendebitedagainsttheagreedceilingforexports
totheCommunity.
Theauthorities oftheMemberStatesoftheCommunitywillnot
raisedifficulties intheeventofadiscrepancy betweentheweightindicated
intheexportlicenoeandtheshipmentorimportweightprovideditiswith­
inreasonablelimits,whiletheYugoslavauthorities ,fortheirpart,will
endeavortokeepanydiscrepancies toaminimum.
Intheeventoftotalorpartialwithdraxfalofanexportlicence,
theYugoslavauthoritieswillnotifytheauthoritiesoftheMemberStates
oftheCommunityofsuchtotalorpartialwithdrawal.Theauthoritiesof
theMemberStatesoftheCommunitywilltaketheappropriate measuresin
accordancewiththeexistingadministrative provisions.
TheYugoslavauthoritieswillforwardtotheauthoritiesofthe
MemberStatesoftheCommunity,viatheEmbassiesoftheMemberStatesof
theCommunityanddirectlytotheCommission ,quarterlyreturnsshowingthe
totalnetweightinmetrictonscoveredbytheexportlicencesissuedagainst
theceilingsforexportstotheMemberStatesoftheCommunityforeach

categoryspecifiedintheAgreement.T'hecategoriesfallingwithin
GroupIwillbetakenasawhole.
Weshouldbegratefulifyouwouldbegoodenoughtoconfirm
thatyourGovernmentisinagreementwiththeforegoing.
Iavailmyself,Madame,ofthisopportunitytorenewtheas­
suranceofmyhighestconsiderations .'

LETTERNo.1
Brussels,
Sir«
Ihavethehonourtoacknowledgereceiptofyourletterdatedthis,
dayreadingasfollows:
"Attheconclusionofthenegotiations betweentheYugoslavGovernment
andtheCommunitywhichledthisdaytothesignatureoftheAgreementon
cottontextiles,thetwopartiesagreedonthefollowing:
Theadministration ofcottontextilesimportsfromYugoslaviawillhe
"basedonasystemofdoublechecking.
TheauthoritiesoftheMemberStatesoftheCommunitywill,automatical­
lyandwithoutdelay,acceptimportsofcottontextileproductsonsubmis­
sionoftheimporter'sapplication ,togetherwiththeoriginalexportli­
cence.TheseexportlicenceswillbeissuedbjrtheYugoslavauthorities up'
tothetotalamountoftheagreedceilings.
TheexportlicenceissuedbytheYugoslavauthoritiesshallbeapplicable
totheproductsreferredtoinArticle1oftheAgreement." ;

Theexportlicencemustspecify:
1.destination
2.sériainuinber
3.importer *snanieandaddress
4.exporter'snameandrd.dress
5.netweight(inkilogramsormetrictons)andvalue
6.categoryanddescriptionofproduct
7.certificateissued "bytheYugoslavauthorities showingthatthe
quantityhas"beendebitedagainsttheagreedceilingforexports
totheCommunity.
Theauthorities oftheMemberStatesoftheCommunitywillnotraise
difficulties intheeventofadiscrepancy betweentheweightindicatedin
theexportlicenceandtheshipmentorimportweightprovideditiswithin
reasonablelimits,whiletheYugoslavauthorities ,fortheirpart,willen­
deavourtokeepanydiscrepancies toaminimum.
Intheeventoftotalorpartialwithdrawalofanexportlicence,the
YugoslavauthoritieswillnotifytheauthoritiesoftheMemberStatesof
theCommunityofsuchtotalorpartialwithdrai »ral.Theauthoritiesofthe
MemberStatesoftheCommunitywilltaketheappropriate measuresinaccor­
dancewiththeexistingadministrative provisions .
TheYugoslavauthoritieswillforwardtotheauthoritiesoftheMember
StatesoftheCommunity,viatheEmbassiesoftheMemberStatesoftheCom­
munityanddirectlytotheCommission,quarterlyreturnsshowingthetotal
netweightinmetrictonscoveredbytheexportlicencesissuedagainstthe
ceilingsforexports ,totheMemberStatesoftheCommunityforeachcategory
specifiedintheAgreement ,ThecategoriesfallingwithinGroupIwillbe
takenasawhole.

Vieshouldbegratefulifyouwould"begoodenoughtoconfirmthat
yourGovernmentisinagreementwiththeforegoing."
OnbehalfoftheYugoslavGovernmentIhavethehonourtoconfirm
theabove-mentioned understandings .
Iavailmyself,Sir,ofthisopportunitytorenewtheassuranceof
myhighestconsideration .

LETTEREo.2
Brussels,
Madame,
Attheconclusionofthenegotiations "betweentheYugoslavGovernment
andtheCommunitywhichledthisdaytothesignatureoftheAgreementon
cottontextiles,thetwopartiesagreedonthefollovdng:
AllYugoslavexportstotheCommunityreferredtoinArticle2ofthe
Agreementshallbecountedagainsttheagreedceilings.
Intheeventofadditional demanddevelopingforre-exportation to
thirdcountriesafterprocessingintheCommunity,theauthoritiesinthe
MemberStatesmaygrantspecialimportlicencesleadingtotheissueof
permitstoexportwithoutdeductionfromtheagreedceilings.
TheCommissionwillinformtheYugoslavGovernmenteachquarterofany
suchdevelopment .
Weshouldbegratefulifyouwouldbegoodenoughtoconfirmthatyour
Governmentisinagreementwiththeforegoing.
Iavailmyself,Madame,ofthisopportunitytorenewtheassuranceof
myhighestconsideration .

LETTERHo.2
Brussels,
Sir,
Ihavethehonourtoacknowledgereceiptofyourletterdatedthis
day,readingasfollows:
"Attheconclusionofthenegotiations betweentheYugoslavGovern­
mentandtheCommunitywhichledthisdaytothesignatureoftheAgree­
mentoncottontextiles,thetwopartiesagreedonthefollowing:
AllYugoslavexportstotheCommunityreferredtoinArticle2ofthe
Agreementshallbecountedagainsttheagreedceilings.
Intheeventofadditionaldemanddevelopingforre-exportation to
thirdcountriesafterprocessingintheCommunity,theauthoritiesinthe
MemberStatesmaygrantspecialimportlicencesleadingtotheissueof
permitstoexportwithoutdeductionfromtheagreedceilings.
TheCommissionvrillinformtheYugoslavGovernmenteachquarterofany
suchdevelopment .
Woshouldbegratefulifyouwouldbegoodenoughtoconfirmthatyour
Governmentisinagreementwiththeforegoing."
OnbehalfoftheGovernmentofYugoslaviaIhavethehonourtoconfirm
theabove-mentioned understandings .
Iavailmyself,Sir,oftheopportunitytorenewtheassuranceof
myhighestconsideration .

LETTERNo.3
Brussels,
Madame,
ν
Attheconclusionofthenegotiations betweentheYugoslavGovernment
andtheCommunitywhichledthisdaytothesignatureoftheAgreementon
cottontextiles,thetwopartiesagreedtothefollowing:
ThepresentAgreementshallinnowayhindermerchantsinCommunity
countriesfromfreelyengaging,astheyhavedoneinthepast,intrade
withthirdcountries .
Thisprincipleshallapply "bothtooperationscarriedoutundertransit
arrangements andtooperationsinvolvinggoodsthatdonotentertheCommu­
nity'scustomsterritory.
Vieshouldbegratefulifyouwouldbegoodenoughtoconfirmthatyour
Governmentisinagreementwiththeforegoing.
Iavailmyself,Madame,ofthisopportunitytorenewtheassuranceof
myhighestconsideration .

LETTERITo.3
Brussels,
Sir,
Ihavethehonourtoacknowledgereceiptofyourletterdatedthis
day,readingasfollows:
"Attheconclusionofthenegotiations "betweentheYugoslavGovern­
mentandtheCommunitywhichledthisdaytothesignatureoftheAgree­
mentoncottontextiles,thetwopartiesagreedonthefollowing :
ThepresentAgreementshallinnowayhindermerchantsinCommunity
countriesfromfreelyengaging,astheyhavedoneinthepast,intrade
withthirdcountries.
Thisprincipleshallapply "bothtooperationscarriedoutundertransit
arrangements andtooperationsinvolvinggoodsthattonotentertheCom-
nunity'scustomsterritory.
lieshould "begrateful .ifyouwould "begoodenoughtoconfirmthatyour
Governmentisinagreementwiththeforegoing."
OnbehalfoftheYugoslav.GovernmentIhave,thehonourtoconfirmthe
above-mentioned understandings .V, ,
Iavailmyself,Sir,ofthisopportunitytorenewtheassuranceofray
highestconsideration .

LETTERNo.4
Brussels,
Madame.
Attheconclusionofthenegotiations "betweentheYugoslavGovernment
andtheCommunitywhichledthisdaytothesignatureoftheAgreementon
cottontextiles,thetwopartiesagreedonthefollowing :
1.HoprovisionoftheAgreementistobointerpreted asaffectingthe
presentstateofliberalization ofcottontextileproductswhichexists
intherelationsbetweentheMemberStatesoftheCommunityandYugoslavia.
2.ItisunderstoodthattheCommunitywillnotaslcforthefixingofa
specificceilingpursuanttoArticle3oftheAgreementunlesstherigid
andsubstantial growthinimportsoftheproductsreferredtoiscausing
oristhreateningtocauseadisturbance ofthemarket.
Whilewaitingfortheresultsoftheconsultations providedforin
thisArticle,theYugoslavGovernmentwillmaintain,fromthedateofthe
request,itsexportsoftheproductsinquestionatalevelcorresponding ,
proratatemporis,to105$oftheexportsforthemostrecentperiodof
twelvemonthsforwhichstatistical dataisavailable .
Weshouldbegratefulifyouwouldbegoodenoughtoconfirmthat
yourGovernmentisinagreementwiththeforegoing.
Iavailn$rself,Madame,ofthisopportunitytorenewtheassurance
ofmyhighestconsideration .

LETTEH No.4
Brussels ,
Sir ,
Ihave thehonour toacknowledge receipt ofyour letter dated this
dayreading asfollottfs ;
"Attheconclusion ofthenegotiations "between theYugoslav Government •
andtheCommunity which ledthis daytothesignature oftheAgreement on
cotton textiles ,thetwoparties agreed onthefollowing :
1.Noprovision oftheAgreement istobeinterpreted asaffecting the
present state ofliberalization ofcotton textile products which ,exists
intherelations between theMember States oftheCommunity andYugoslavia *
2.Itisunderstood that theCommunity will notaskforthefixing ofa
specific ceiling pursuant toArticle 3oftheAgreement unless therapid
andsubstantial growth inimports oftheproducts referred toiscausing
oristhreatening tocause adisturbance ofthemarket .
While waiting fortheresults oftheconsultations provided for inthis
Article ,theYugoslav Government will maintain ,from thedate oftherequest ,
)
itsexports oftheproducts in .question atalevel corresponding ,prorata
temporis ,to105% of "theexports forthemost recent period oftwelve months
for which statistical data isavailable .
Vieshould begrateful ifyouwould begood enough toconfirm that your
Government isinagreement with theforegoing ."
Onbehalf oftheYugoslav Government Ihave thehonour toconfirm the
above-mentioned understandings .
Iavail myself ,Sir ,ofthis opportunity torenew theassurance ofmy
highest consideration .

LETTERNo.5
Brussels,
Madame.■
Attheconclusionofthenegotiations betx\TeentheYugoslavGovernment
andtheCommunitywhichledthisdaytothesignatvireoftheAgreementon
cottontextiles,thetwopartiesagreedonthefollowing:
TheprovisionsofArticle8oftheAgreementshallapplyinrespect
oftheproductssetoutinthelistannexedhereto.
Weshould "begratefulifyouwouldbegoodenoughtoconfirmthatyour
Governmentisinagreementwiththeforegoing.
Iavailmyself,Madame,ofthisopportunitytorenewtheassuranceof
myhighestconsideration .

A17ÎTEX
toletterHo.5
Wovenfabricsofflaxoroframie
Yarnofman-madefibres(discontinuous orwaste)notputupfor
retailsale:
Orrégénérâtédtextilefibres
Wovenfabricsofman-madefibres(discontinuous orwaste):
Ofregeneratedtextilefibres
Wovenpilefabricsandchenillefabrics(otherthanterrytowel­
lingorsimilarterryfabricsofcottonfallingwithinheading
No«55.08andfabricsfallingwithinheadingNo.53*05):
Ofsvnthetictextilefibres
exBOfothertextilematerials
58.IOEabroidery,inpiece,instripsorinmotifs: '
AEmbroiderywithoutvisibleground;
exIIOther
BOther
exIIOther
60.01Knittedorcrochetedfabric,notelasticnorrubberized :
BOfman-madefibres
exCOfothertextilematerials
60.06Knittedorcrochetedfabricandarticlesthereof,'elasticor
rubberized(includingelasticknee-capsandelasticstockings):
exAFabric
ex61.01Men'sandboys'outergarments
61.02Women's,girls'andinfants'outergarments:
exBOther
ex61.03Hen'sandboys'undergarments,includingcollars,shirtfronts
andcuffs
61,05Handkerchiefs :
exBOther54.05
56.05
Β
56.07
Β
58.04

62.02Bedlinen,tablelinen,toiletlinenand.kitchenlinens
curtainsandotherfurnishingarticles:
exBOther
62.03Sacksandbags,ofakindusedforthepackingofgoods:
BOfothertextilematerials
IUsed
exBOther
exIIOther
62.04Tarpaulins,sails,awnings,sunblinds,tentsandcampinggoods:
BOfothertextilematerials
63.01Clothing,clothingaccessories ,travellingrugsandblankets,
householdlinenandfurnishingarticles(otherthanarticles
fallingwithinheadingNo.58.01,58*02or58*03)»oftextile
materials,footwearandheadgearofanymaterial,showingsigns
ofappreciable wearandimportedinbulkorinbales,sacksor
similarbulkpackings:
exAUsedclothing

LETTERITo.5
Brussels,
Sir,
Ihavethehonourtoacknowledgereoeiptofyourletterdatedthis
dayreadingasfollows:
"Attheconclusionofthenegotiations betweentheYugoslavGovern­
mentandtheCommunitywhichledthisdaytothesignatureoftheAgreement
oncottontextiles,thetwopartiesagreedonthefollowing:
TheprovisionsofArticle8oftheAgreementshallapplyinrespect
oftheproductssetoutinthelistannexedhereto.
Weshould "begratefulifyouwould "begoodenoughtoconfirmthat
yourGovernmentisinagreementwiththeforegoing."
On"behalfoftheYugoslavGovernmentIhavethehonourtoconfirm
theabove-mentioned understandings .
Iavailmyself,Sir,ofthisopportunitytorenewtheassuranceof
myhighestconsideration .

LETTER No.6
Brussels .
Madame ,
Attheconclusion ofthenegotiations between theGovernment ofYu­
goslavia andtheCommunity which ledthis daytothesignature oftheAgree­
ment oncotton textiles ,thetwoparties agreed onthefollowing :
AsfarastheKingdom oftheNetherlands isconcerned ,theAgreement
shall apply solely totheKingdom 'sterritory inEurope .
Weshould begrateful ifyouwould begood enough toconfirm that
your Government isinagreement with theforegoing .
Iavail myself ,Madame ,ofthis opportunity torenew theassurance
ofmyhighest consideration . •,

LETTERNo.6
Brussels,
Sir.
Ihavethehonourtoacknowledgereceiptofyourletterdatedtoday,
readingasfollows:
"Attheconclusionofthenegotiations "betweentheGovernmentofYu­
goslaviaandtheEuropeanEconomicCommunitywhichledthisdaytothesig­
natureoftheAgreementoncottontextiles,thetwopartiesagreedonthe
following :
AsfarastheKingdomoftheNetherlandsisconcerned,theAgreement
shallapplysolelytotheKingdom'sterritoryinEurope.
Weshouldhegratefulifyouwould "begoodenoughtoconfirmthat
yourGovernmentisinagreementwiththeforegoing."
OnbehalfoftheGovernmentofYugoslaviaIhavethehonourtoconfirm
theabove–mentionedunderstanding .
Iavailmyself,Sir,ofthisopportunitytorenewtheassuranceofmy
highestconsideration .

LETTERHo.7
Brussels.
Sir,
Attheconclusionofthenegotiations betweentheYugoslavGovern­
mentand.theCommunitywhichledthisdaytothesignature ,oftheAgreement
oncottontextiles,thetwopartiesagreedonthefollowing;
GiventhesafeguardclausesforwhichprovisionismadeintheAgree­
ment,thetwopartiesstatetheirintentionofavoidinganymeasureswhich
mayhavetheeffectofrenderingtheAgreementinoperative ...r, ;
Ifeitherofthepartiesfindsthatitsinterestsareseriouslyaf­
fectedbysuchmeasuresadoptedbytheother,thatparty,mayrequestthe
openingofconsultations inordertofindmutuallyacceptablesolutions.,
Weshouldbogratefulifyouwouldbegoodenoughtoconfirmthat
yourGovernmentisinagreementwiththeforegoing. ■■
Iavailmyself,Sir,ofthisopportunitytorenewtheassurancesof
myhighestconsideration . -.

LETTERNo.7
Brussels,
Madame,
Ihavethehonourtoacknowledgereceiptofyourletterdatedthis
dayreadingasfollows:
"Attheconclusionofthenegotiations betweentheYugoslavGovern­
mentandtheCommunitywhichledthisdaytothesignatureoftheAgreement
oncottontextiles,thetwopartiesagreedonthefollowing :
.GiventhesafeguardclausesforwhichprovisionismadeintheAgree­
ment,thetwopartiesstatetheirintentionofavoidinganymeasureswhich
mayhavetheeffectofrenderingtheAgreementinoperative .
Ifeitherofthepartiesfindsthatitsinterestsareseriouslyaf­
fected "bysuchmeasuresadoptedbytheother,thatpartymayrequestthe
openingofconsultations inordertofindmutuallyacceptablesolutions.
Vieshouldbegratefulifyouwouldbegoodenoughtoconfirmthat
yourGovernmentisinagreementwiththeforegoing."
OnbehalfoftheCommunityIhavethehonourtoconfirmtheabove-
mentionedunderstandings .
Iavailmyself,Madame,ofthisopportunitytorenewtheassurance
ofmyhighestconsideration .

LETTERHo.8
Brussels.
' • •v
Sir. "'1
Attheconclusionofthenegotiations "betweentheYugoslavGovernment
andtheCommunitywhichledthisdaytothesignatureoftheAgreementon
cottontextiles,Ihavethehonourofdrawingyourattentiontothedevelop­
mentoftradeintextiles "betifeentheCommunityandYugoslavia.
InthelightoftheeconomicdevelopmentofYugoslavia andthfeefforts
ofthiscountrytoopenupitsinternalmarket,thetradeintextileproducts
betweentheCommunityandYugoslavia showsanincreasingly dynamicanddi­
versifieddevelopment.Inthefieldoftextilesthe'CommunitytaJces34$of
Yugoslavia'sworld-wideexportsandprovides40$ofitsimports..
Industrialcooperationinthefieldoftextilesrepresentsanimpor­
tantfactorinthestructuralchangesintradeandinthefurtherdevelop­
mentoftheindustries concerned.

Thestatisticaltableannexedheretoshowsthepositionwithrespect
tothesepatternsoftradeandtoindustrialcooperationinthefieldof
textiles.
TheYugoslavGovernmentexpressesthehopethattheAgreementoncot­
tontextileswillcontributetothefurtherdevelopment oftradebetween
theCommunityandYugoslaviaingeneralandinthefieldoftextilesin
particular.
Weshouldbegratefulifyouwouldbegoodenoughtoacknowledgere­
ceiptofthisletterandtheAnnexthereto.
Iavailmyself,Sir,oftheopportunitytorenewtheassurancesofmy
highestconsideration .

LETTERNo.8
Brussels.
Madame.
Ihavethehonourtoacknowledgereceiptofyourletterdatedthis
dayreadingasfollows:
"Attheconclusionofthenegotiations 'betweentheYugoslavGovern­
mentandtheCommunitywhichledthisdaytothesignatureoftheAgreement
oncottontextiles,Ihavethehonourofdrawingyourattentiontothede­
velopmentoftradeintextilesbetweentheCommunityandYugoslavia.
InthelightoftheeconomicdevelopmentofYugoslavia and,theef­
fortsofthiscountrytoopenupitsinternalmarket,thetradeintextile
productsbetweentheCommunityandYugoslaviashowsanincreasingly dynamic
anddiversified development .InthefieldoftextilestheCommunitytakes
34i°ofYugoslavia'sworld-wideexportsandprovides40$ofitsimports.
Industrialcooperationinthefieldoftextilesrepresentsanim­
portantfactorinthestructuralchangesintradeandinthefurtherde­
velopmentoftheindustriesconcerned.

Thestatisticaltableannexedheretoshowsthepositionwithre­
specttothesepatternsoftradeandtoindustrialcooperationinthe
fieldoftextiles.
TheYugoslavGovernmentexpressesthehopethattheAgreementon
cottontextileswillcontributetothefurtherdevelopment oftradebet­
weentheCommunityandYugoslaviaingeneralandinthefieldoftextiles
inparticular.
Weshouldbegratefulifyouwouldbegoodenoughtoacknowledge
receiptofthisletterandtheAnnexthereto."
Iavailmyself,Madame,ofthisopportunitytorenewtheassurance
ofmyhighestconsideration .

TUEs-i-ii-uo-rurti!:o!■'i ANDexpoots OF
TEXTILE PRODUCTS INYUGOSLAVIA
-1971-
inmillions :--ofDollar
SITCgroupsTotal EEC
V-UmtedDenmarkEEC
SFRY 6 Xmgdom1SQVV /
IîîPOHT'S
Group26Textilefibresandwaste113.2 17.7 2,2 19-9 16,8
65Yarn,wovenfabrics,82,4 59.2 raade-uptextilearticles139-1 80.0 2.4
841Clothing 17.5 7.2 0.1 7.3 41.7
Total:274.8 104.9 4.7
•<109.6
100%■38.2%«39.9%
EXPORTS
Group26Textilefibresandwaste9.5 2.1 2.1 22.1
65Yarn,wovenfabrics,0.8 32.4 41.0maàe-uptextilearticles 79-0 30.4 1.2
84IClothing 93.6 24.9 2.0 0.4 27.3 29,1
Totalï182.1 57.4 2.8 1.6 61.8
100%31.5% 33.9%
Source:0ECD
Processingtraffic
75-8TVPORTS 73.2 55.5 55.5
EXPORTS 89.4 76.9 76.9 00.0
Source:Yugoslavstatistics
Overalltotal
IMPORTS 348.0 I6O.4 4.7 165.1 47.4
EXPORTS 271.5 134.3 2.8 1.6 138.7 52,0