Proposal for a COUNCIL DECISION concerning the conclusion of the Agreements in the form of exchanges of letters amending the exchanges of letters on transit signed together with the Association Agreement on 16 December 1991 between the European Communities and their Member States and the Republic of Hungary and to the Interim Agreement between the European Economic Community and the Republic of Hungary as well as exchanges of letters replacing the exchanges of letters on infrastructure signed together with the Association Agreement between the European Communities and their Member States and the Republic of Hungary and with the Interim Agreement between the European Economic Community and the Republic of Hungary
Date: 1992-05-15
Institutions: European Commission
Subjects: Hungary, agreement (EU), land transport, transit, transport infrastructure

COMMISSION OF THE EUROPEAN  COMMUNITIES 

COM(92) 203 final 

Brussels,  15 May  1992 

Proposal  for a 
COUNCIL  DECISION 

concerning  the conclusion  of  the Agreements  in the  form  of  exchanges of 
letters amending  the exchanges of  letters on  transit  signed  together 
with  the Association Agreement  on  16 December  1991  between  the  European 
Communities  and  their  Member  States and  the Republic of  Hungary  and  to 
the  Interim  Agreement  between  the European  Economic  Community  and  the 
Republic of  Hungary  as well  as exchanges of  letters  replacing  the 
exchanges of  letters on  infrastructure  signed  together  with  the 
Association Agreement  between  the European Communities  and  their  Member 
States and  the Republic of  Hungary  and with  the  Interim  Agreement 
between  the European  Economic  Community  and  the Republic of  Hungary 

Proposal  for a 
COUNCIL  DECISION 

concerning  the conclusion  of  the Agreements  in the  form  of exchanges of 
letters amending  the exchanges of  letters on  transit  signed  together 
with  the Association Agreement  on  16 December  1991  between  the  European 
Communities  and  their  Member  States  and  the CSFR  and  to 
the  Interim Agreement  between  the European  Economic  Community  and  the 
CSFR  as well  as exchanges of  letters  replacing  the 
exchanges of  letters on  infrastructure  signed  together  with  the 
Association Agreement  between  the  European  Communities  and  their  Member 
States  and  the CSFR  and with  the  Interim  Agreement 
between  the European  Economic  Community  and  the CSFR 

(presented  by  the  Commission) 

Explanatory  memorandum 

1.  The  annexed  draft  proposals  constitute  the  legal  instrument  for 
modifying  the existing exchanges of  letters on transit  between  the 
European  community  on the one hand and the CSFR  and  Hungary  on  the 
other  hand  and  replacing  the  existing  exchanges  of  letters  on 
infrastructure  between  the  European  Community  on  the  one  hand  and 
the CSFR  and Hungary on the other  hand. 

2. 

The  above  mentioned  existing  exchanges  of  letters  were  signed  on 
16 December  1991  upon  the  signature  (on  16  December  1991)  of  the 
Association  Agreements  between  the  Communities  and  their  member 
States  on  the  one  hand  and the CSFR  and  Hungary  on  the  other  hand 
as well as upon the  signature  (on 16 December  1991) of  the  Interim 
Agreement  between  the  European  Economic  Community  on  the  one  hand 
and  the  CSFR  and Hungary  on the other hand.  The  Europe  Agreement 
has  not  yet  come  into  force.  The  interim Agreement  entered  into 
force on  1 March  last. 

Since  the  signatures  of the  above mentioned  exchanges  of  letters, 
both  the  CSFR  and  Hungary  increased  the  fee  for  taxable  transit 
permits  which  led  to  discussions  between  the  Community  and  the 
countries  concerned.  These  discussions  resulted  in  a  mutually 
acceptable  reduction  in  the  transit  fees  as  well  as  in  a  clearer 
undertaking  from  the  community  to  explore  with  both  Hungary  and 
the  CSFR,  within  the  framework  of  the  existing  financial 
mechanisms,  financing  possibilities  for  the  improvement  of  land 
transport  infrastructure  in  these  two  countries.  The  parties 
therefore  consider  it  necessary  to  modify  the  above  mentioned 
existing  exchanges  of  letters  on  transit  and  to  replace  the 
existing  exchanges  of  letters on  infrastructure. 

3.  The  Council  concludes  the  agreement  on  behalf  of  the  EEC  by 

adopting the decisions mentioned  under (I). 

4. 

5. 

In  view  of  the  above  considerations  the  Commission  requests  the 
Council to adopt the proposals mentioned under (I). 

In  view  of  the  urgency  of  the  matter  the  Commission,  Hungary  and 
the  CSFR  agree  that the exchanges  of  letters  can  be  signed  by  the 
ambassadors  of  these  two  countries  and  by  a  director  of  the 
Directorate-General  for External Relations of the  Commission. 

r 

ANNEX I 

Draft  Council  decisions  concerning  the  amendment  of  the  existing 
Exchanges of Letters on transit between the EEC on the one hand and the 
CSFR and Hungary on the other hand and replacing the existing Exchanges 
of Letters  on  infrastructure between  the  EEC on the  one  hand  and the 
CSFR and Hungary on the other hand. 

AGREEMENT 

in  the  form  of  exchanges  of  letters  modifying  the  exchanges  of  letters 
on transit  signed  together  with  the Association  Agreement  on  16  December 
1991  between  the  European  Communities  and  their  Member  States  and  the 
Republic  of  Hungary,  and with  the  Interim  Agreement  between  the  European 
Economic  Community  and  Hungary(*);  and  exchanges  of  letters  replacing 
the  exchanges  of  letters  on  infrastructure  signed  together  with  the 
Association  Agreement  between  the  European  Communities  and  their  Member 
States  and  the  Republic  of  Hungary,  and  with  the  Interim  Agreement 
between  the European  Economic  Community  and  the  Republic  of  Hungary. 

COUNCIL  DECISION 
/92 
(EEC) N° 

OF 

1992 

Concerning  the  conclusion  of  the  Agreements  in  the  form  of  exchanges  of 
letters  amending  the  exchanges  of  letters  on  transit  signed  together 
with  the  Association  Agreement  on  16 December  1991  between  the  European 
Communities  and  their  Member  States  and  the  Republic  of  Hungary  and  to 
the  Interim  Agreement  between  the  European  Economic  Community  and  the 
Republic  of  Hungary  as  well  as  exchanges  of  letters  replacing  the 
exchanges  of  letters  on  infrastructure  signed  together  with  the 
Association  Agreement  between  the  European  Communities  and  their  Member 
States  and  the  Republic  of  Hungary  and  with  the  Interim  Agreement 
between  the European  Economic  Community  and  the  Republic  of  Hungary. 

THE  COUNCIL OF THE EUROPEAN  COMMUNITIES, 

Having  regard  to  the  treaty  establishing  the  European  Economic 
Community,  and  in particular  Article  113 there of, 

Having  regard  to the proposal  of  the  Commission, 

Whereas  the  exchanges  of  letters  on  transit  signed  together  with  the 
Association  Agreement  and with  the  Interim  Agreement  on  16 December  1991 
should  be  amended  ; whereas  the  exchanges  of  letters  on  infrastructure 
signed  together  with  the  Association  Agreement  and  with  the  Interim 
Agreement  on  16  December  1991  should  be  replaced  ;  whereas  the 
Agreements  in  the  form  of  exchanges  of  letters  agreed  to  this  effect 
should  be  concluded. 

(1) OJ  NO 

, 1992 

I'.-l.-pli^n. •: 

i l l r ed 

llri.-  2) 

.-xch.wje-  2 JS . 1 1 . 11 

IVir-x  • OMt.U  U  2 1 B 7 1 

T-  l<»qi vif.h  i c 

. I . K ' H - S» 

/ A u 4 / i i it  »r-;l./WA/c<j-in.d»-r(l  )m) 

HAS ADOPTED  THIS DECISION  : 

-  2 -

Article  1 

The  Agreements  in  the  form  of  exchanges  of  letters  amending  the 
exchanges  of  letters  on  transit  signed  together  with  the  Association 
Agreement  between  the  European  Communities  and  their  Member  States  on 
the  one  hand  and  Hungary  on  the  other  hand  and  with  the  Interim 
Agreement  between  the  European  Economic  Community  and  the  Republic  of 
Hungary  and  replacing  the  exchanges  of  letters  on  infrastructure  signed 
together  with  the Association  Agreement  between  the  European  Communities 
and  their  Member  States  on  the  one  hand  and  Hungary  on  the  other  hand 
and  with  the  Interim  Agreement  between  the  European  Economic  Community 
on  the  one  hand  and  Hungary  on  the  other  hand  are  hereby  approved  on 
behalf  of the  Community. 

The  texts  of  the  Agreements  in  the  form  of  exchanges  of  letters  are 
annexed  to  this  decision. 

The  President  of  the  Council  is  hereby  authorized  to  designate  the 
person  empowered  to  sign the Agreements  in order  to bind  the  Community. 

Article  2 

Done  at Brussels, 

1992 

For  the  Council 
The  President 

Agreement  in the  form of  an 
Exchange of  letters  amending  the 

Exchanges  of  letters  between  the 
European Economic  Community  ("the  Community") 
and Hungary  concerning  transit 

signed  in Brussels  on  16th December  1991 

A. 

Letter  from  the  Community 

Sir, 

Upon  the  occasion  of  the  signature  on  16th  December  1991  of  the  Europe 
Agreement  between  the  Communities  and  their  Member  States  and  Hungary 
and  of  the  Interim  Agreement  on  trade  and  trade  related  matters  between 
the  European  Economic  Community  ("the  Community")  and  the  European  Coal 
and  Steel  Community  and  Hungary  Agreements  in  the  form  of  Exchanges  of 
letters  between  the  Community  and  Hungary  concerning  transit  were 
signed.  The  Europe  Agreement  has  not  yet  come  into  force.  The  Interim 
Agreement  came  into  force on  1st March  1992. 

Since  the  signatures  of  the  Exchanges  of  letters,  Hungary  adopted  law 
N° LXXXII  of  1991  on  vehicle  taxes.  The  parties  consider  it  necessary 
to  come  to  an  agreement  through  the  present  Exchange  of  letters,  to 
amend  the relevant  provisions  of the Exchanges of  letters  signed  on  16th 
December  1991 to take account  thereof. 

Accordingly,  I  propose  that  the  Exchanges  of  letters  signed  on 
16th December  1991 be amended  as  follows  : 

The  part  of  Paragraph  2  (a) beginning  with  the  words  "...Hungary  hereby 
grants..."  shall be replaced  by the  following  text  : 

"(i)  Hungary  hereby  grants  in  1992,  in  place  of  the  existing 
quotas  granted  pursuant  to  the  bilateral  agreement  between 
Greece  and  Hungary  for  1991 permits  in the  following  way  : 

1992 

untaxed 

taxable 

third  country  (1)(2) 

10.000 

14.000  with  a  tax  rate  of  1  Forint  per 
ton/km. 
1.200  with  a  tax  rate  of  3  Forint  per 
ton/km. 
600 

(1) 

(2) 

All  above  existing  and  additional  third  country  permits  may 
be exchanged  for transit  permits  in the  ratio  1:2 
(1 third  country  permit  for 2 transit  permits) 
The  Community  shall  grant  600  third  country  permits  to 
Hungary  for use only  in traffic to or  from Greece. 

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  five percent  so that  the permits  amount  in 
1993  to  10.500  untaxed  and  14.700  and  1.260  taxable  permits  and  in 
1994  to  11.025  untaxed  and  15.435  and  1.323  taxable  permits.  The 
number  of  third  country  permits  remains  600  in  each  of  the  years 
1993 and  1994. 

The  rates  of  tax  of  1 Forint  and  3  Forint  per  ton-kilometer  shall 
be  adjusted  for  1993  so  as  to  maintain  an  exchange  rate  for  the 
Forint  to  the  ECU  equal  to  the  average  of  such  rate  obtaining  in 
the  period  from  6th  February  to  31st December  1992  and  for  1994  so 
as  to  maintain  an  average  rate  equal  to  the  average  obtaining  in 
the period  from  1st January  to  31st  December  1993. 

(ii)  The  Community  hereby  grants  to  Hungary  in  1992  12.000 

untaxable  permits  for use only on the territory  of  Greece. 

If  the  transit  situation  on  the  territory  of  the  republics  which  formed 
part  of  Yugoslavia  in  1991  is  not  normalised  the  Community  and  Hungary 
shall  jointly  examine  before  31st  December  1992  the  possible  changes 
concerning  the arrangements  set out  in this paragraph  2.a. 

Changes  in  the  above  provisions  can,  until  the  end  of  1994  or,  if  this 
happens  at  an  earlier  date,  until  the  conclusion  of  a  bilateral 
transport  agreement  between the Community  and Hungary,  be made  by  common 
agreement  between the parties. 

The Community  takes  note of the Hungarian  understanding  that  discussions 
will  take  place  with  the Commission  and  the  Member  States  most  directly 
concerned  on  other  transportation  questions  such  as  aviation  and  third 
country  road permits." 

If  the  foregoing  is  acceptable  to  Hungary,  I have  the  honour  to  propose 
that  this  letter,  together  with  Your  Excellency's  reply  to  that  effect, 
shall  constitute  an  amendment  to  the  Exchange  of  letters  signed  on 
16th December  1991  which  shall  enter  into  force  on  the  date  of  Your 
Excellency's  reply  and be applicable  as  from  1st March  1992. 

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

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

On behalf  of  the  Community, 

c 

Agreement  in the  form of  an 
Exchange of  letters amending  the 

Exchanges of  letters between  the 
European Economic Community  ("the  Community") 
and Hungary  concerning  transit 

signed  in Brussels on  16th December  1991 

B. 

Letter  from  Hungary 

Sir, 

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

"Upon  the occasion  of  the  signature  on  16th  December  1991  of  the  Europe 
Agreement  between  the  Communities  and  their  Member  States  and  Hungary 
and  of  the  Interim Agreement  on trade  and  trade  related  matters  between 
the  European  Economic  Community  ("the  Community")  and  the  European  Coal 
and  Steel  Community  and  Hungary  Agreements  in  the  form  of  Exchanges  of 
letters  between  the  Community  and  Hungary  concerning  transit  were 
signed.  The  Europe  Agreement  has  not  yet  come  into  force.  The  Interim 
Agreement  came  into force on  1st March 1992. 

Since  the  signatures  of  the  Exchanges  of  letters,  Hungary  adopted  law 
N° LXXXII  of  1991  on  vehicle  taxes.  The  parties  consider  it  necessary 
to  come  to  an  agreement  through  the  present  Exchange  of  letters,  to 
amend  the relevant provisions of the Exchanges of  letters  signed  on  16th 
December  1991 to take account thereof. 

Accordingly,  I  propose  that  the  Exchanges  of  letters  signed  on 
16th December  1991 be amended  as  follows  : 

The  part  of  Paragraph  2  (a) beginning  with  the words  "...Hungary  hereby 
grants..."  shall be replaced  by the  following  text  : 

"(i)  Hungary  hereby  grants  in  1992,  in  place  of  the  existing 
quotas  granted  pursuant  to  the  bilateral  agreement  between 
Greece and Hungary  for  1991 permits  in the  following  way  : 

1992 

untaxed 

taxable 

third  country  (1)(2) 

10.000 

14.000  with  a  tax  rate  of  1  Furint  p*-r 
ton/km. 
1.200  with  a  tax  rate  of  3  Forint  per 
ton/km. 
600 

1 

(1) 

(2) 

All  above  existing  and  additional  third  country  permits  may 
be exchanged  for transit  permits  in the  ratio  1:2 
(1 third country  permit  for 2 transit  permits) 
The  Community  shall  grant  600  third  country  permits  to 
Hungary  for use only  in traffic to or  from Greece. 

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  five percent  so that  the  permits  amount  in 
1993  to  10.500 untaxed  and  14.700  and  1.260  taxable  permits  and  in 
1994  to  11.025  untaxed  and  15.435  and  1.323  taxable  permits.  The 
number  of  third  country  permits  remains  600  in  each  of  the  years 
1993  and 1994. 

The  rates  of  tax  of  1 Forint  and  3  Forint  per  ton-kilometer  shall 
be  adjusted  for  1993  so  as  to  maintain  an  exchange  rate  for  the 
Forint  to  the  ECU  equal  to  the  average  of  such  rate  obtaining  in 
the  period  from  6th February  to  31st December  1992  and  for  1994  so 
as  to  maintain  an  average  rate  equal  to  the  average  obtaining  in 
the period  from 1st January  to 31st December  1993. 

(ii)  The  Community  hereby  grants  to  Hungary  in  1992  12.000 

untaxable permits  for use only  on the  territory  of Greece. 

If  the  transit  situation on the  territory  of  the  republics  which  formed 
part  of  Yugoslavia  in  1991  is  not  normalised  the  Community  and  Hungary 
shall  jointly  examine  before  31st  December  1992  the  possible  changes 
concerning  the arrangements  set out  in this paragraph  2.a. 

Changes  in  the  above  provisions  can, until  the  end  of  1994  or,  if  this 
happens  at  an  earlier  date,  until  the  conclusion  of  a  bilateral 
transport  agreement between the Community  and  Hungary,  be made  by  common 
agreement between the parties. 

The Community  takes note of the Hungarian  understanding  that  discussions 
will  take  place with  the Commission  and  the  Member  States  most  directly 
concerned  on  other  transportation  questions  such  as  aviation  and  third 
country  road permits." 

If  the  foregoing  is acceptable  to Hungary,  I have  the  honour  to  propose 
that  this  letter, together  with  Your  Excellency's  reply  to  that  effect, 
shall  constitute  an  amendment  to  the  Exchange  of  letters  signed  on 
16th December  1991  which  shall  enter  into  force  on  the  date  of  Your 
Excellency's  reply and be applicable  as  from  1st March  1992. 

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

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

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

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

For  the Government  of  Hungary, 

Agreement  in the  form of  an 
Exchange of  letters  replacing  the 

Exchange of  letters between  the 
European Economic  Community  ("the  Community") and  Hungary 
on  land transport  infrastructure 

signed  in Brussels on  16th December  1991 

Letter  from the  Community. 

Sir, 

Upon  the  occasion  of  the  signature  on  16th  December  of  the  Interim 
Agreement  on  trade  and  trade  related  matters  between  the  European 
Economic  Community  ("the  Community")  and  the  European  Coal  and  Steel 
Community  and Hungary  an Agreement  in the  form of  an Exchange  of  Letters 
between 
transport 
infrastructure  was  signed.  The  Interim  Agreement  came  into  force  on 
1st March 1992. 

the  Community 

and  Hungary 

concerning 

land 

Since  the  signature  of  the  Exchange  of  Letters,  Hungary  adopted  law 
N° LXXXII  of  1991  on  vehicle  taxes.  The  parties  consider  it  necessary 
to come to an agreement through  the present  Exchange of  letters  to  amend 
the  relevant  provisions  of  the  Exchange  of  letters  signed  on 
16th December  1991 to take account thereof. 

Accordingly,  I propose  that  the  text  of  the  Exchange  of  Letters  signed 
on  16th December  1991 be replaced  by the  following  text: 

"I  have  the  honour  of  confirming  to you  herewith  that  the  Community  has 
full  understanding  of  the  infrastructural  and  environmental  problems 
Hungary  is  facing  in  the  area  of  transport  and  shall,  within  the 
framework  of  the  financial  mechanisms  provided  for,  provide,  as 
transport 
appropriate,  financing 
infrastructure,  including  roads, railways, inland  waterways  and  combined 
transport. 

for  the  improvement 

land 

of 

In  this  context,  I  take  note  of  Hungary's  explanation  of  the  urgent 
need  for  financial  assistance  to  enable  Hungarian  infrastructure  to 
cope  with  the  increased  transit  traffic  in  Hungary  and  of  the  wish 
expressed  by  Hungary  to  consider  projects  related  to  transit  traffic 
through  Hungary,  such  as  the  modernization  and  construction  of  railway 
lines  and  motorways  between  Hegyeshalom  and  Budapest,  and  that  between 
Budapest  and  Kelebia  as priority,  since  these  represent  major  corridors 
for Community  transit. 

6 

The  Commission  agrees to  start  to examine with  Hungary  possible  ways  to 
contribute  to  the  improvement  of  such  infrastructure  in Hungary,  paying 
special  attention  to  environmental  aspects,  inter  alia  combined 
transport,  transit  motorways, waterways  transport,  without  prejudice  to 
appraisal  of projects according  to existing procedures." 

If the  foregoing  is acceptable to Hungary,  I have  the  honour  to  propose 
that  this  letter, together with  Your Excellency's  reply  to  that  effect, 
shall  constitute  the  replacement  of  the  Exchange  of  Letters  signed  on 
16th December  1991, which  shall  enter  into  force  on  the  date  of  Your 
Excellency's  reply  and be applicable as from  1st March 1992. 

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

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

On behalf  of the  Community. 

Agreement  in the  form of  an 
Exchange of  letters  replacing  the 

Exchange of  letters between  the 
European Economic Community  ("the  Community")  and  Hungary 
on  land transport  infrastructure 

signed  in Brussels on  16th December  1991 

Letter  from Hungary. 

Sir, 

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

"Upon  the  occasion  of  the  signature  on  16th  December  of  the  Interim 
Agreement  on  trade  and  trade  related  matters  between  the  European 
Economic  Community  ("the  Community")  and  the  European  Coal  and  Steel 
Community  and Hungary  an Agreement  in the  form of  an Exchange  of  Letters 
between 
transport 
Hungary 
infrastructure  was  signed.  The  Interim  Agreement  came  into  force  on 
1st March 1992. 

the  Community 

concerning 

land 

and 

Since  the  signature  of  the  Exchange  of  Letters,  Hungary  adopted  law 
N° LXXXII  of  1991  on  vehicle  taxes.  The  parties  consider  it  necessary 
to come to an agreement  through the present Exchange  of  letters  to  amend 
the  relevant  provisions  of  the  Exchange  of  letters  signed  on 
16th December  1991 to take account  thereof. 

Accordingly,  I propose  that  the  text  of  the  Exchange  of  Letters  signed 
on  16th December  1991 be replaced  by  the  following  text: 

"I have  the  honour  of  confirming  to  you  herewith  that  the  Community  has 
full  understanding  of  the  infrastructural  and  environmental  problems 
Hungary  is  facing  in  the  area  of  transport  and  shall,  within  the 
framework  of  the  financial  mechanisms  provided  for,  provide,  as 
appropriate,  financing 
transport 
infrastructure, including  roads, railways, inland waterways  and  combined 
transport. 

for  the  improvement 

land 

of 

In  this  context,  I  take  note  of  Hungary's  explanation  of  the  urgent 
need  for  financial  assistance  to  enable  Hungarian  infrastructure  to 
cope  with  the  increased  transit  traffic  in  Hungary  and  of  the  wish 
expressed  by  Hungary  to  consider  projects  related  to  transit  traffic 
through  Hungary,  such  as  the  modernization  and  construction  of  railway 
lines  and  motorways  between  Hegyeshalom  and  Budapest,  and  that  between 
Budapest  and  Kelebia  as priority,  since  these  represent  major  corridors 
for Community  transit. 

X1--' 

The  Commission  agrees  to  start  to  examine  with  Hungary  possible  ways  to 
contribute  to  the  improvement  of  such  infrastructure  in  Hungary,  paying 
special  attention  to  environmental  aspects,  inter  alia  combined 
transport,  transit  motorways, waterways  transport,  without  prejudice  to 
appraisal of projects according  to existing  procedures." 

If  the  foregoing  is acceptable  to  Hungary,  I have  the  honour  to  propose 
that  this  letter,  together  with  Your  Excellency's  reply  to  that  effect, 
shall  constitute  the  replacement  of  the  Exchange  of  Letters  signed  on 
16th December  1991,  which  shall  enter  into  force  on  the  date  of  Your 
Excellency's  reply  and be applicable  as  from  1st March  1992. 

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

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

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

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

For the Government  of  Hungary, 

& 

/ ?i 

Agreement  in the  form  of  an 
Exchange of  letters  replacing  the 

Exchange of  letters between  the 
European Economic  Community  ("the  Community")  and  Hungary 
on  land transport  infrastructure 

signed  in Brussels on  16th  December  1991 

Letter  from the  Community. 

Sir, 

Upon  the  occasion  of  the  signature  on  16th  December  of  the  Europe 
Agreement  between the Communities  and their  Member  States  and  Hungary  an 
Agreement  in  the  form  of  an  Exchange  of  Letters  between  the  Community 
and  Hungary  concerning  land  transport  infrastructure  was  signed.  The 
Europe Agreement  has not yet come  into  force. 

Since  the  signature  of  the  Exchange  of  Letters,  Hungary  adopted  law 
N° LXXXII  of  1991  on  vehicle  taxes.  The  parties  consider  it  necessary 
to  come  to  an  agreement  through  the  present  Exchange  of  letters,  to 
amend  the  relevant  provisions  of  the  Exchange  of  letters  signed  on  16th 
December  1991 to take account  thereof. 

Accordingly,  I propose  that  the  text  of  the  Exchange  of  Letters  signed 
on  16th December  1991 be replaced  by the  following  text: 

"I  have  the  honour  of  confirming  to  you  herewith  that  the  Community  has 
full  understanding  of  the  infrastructural  and  environmental  problems 
Hungary  is  facing  in  the  area  of  transport  and  shall,  within  the 
framework  of  the  financial  mechanisms  provided  for  in  the  Europe 
Agreement,  provide,  as  appropriate,  financing  for  the  improvement  of 
land  transport  infrastructure,  including  roads,  railways,  inland 
waterways  and  combined  transport. 

In  this  context,  I  take  note  of  Hungary's  explanation  of  the  urgent 
need  for  financial  assistance  to  enable  Hungarian  infrastructure  to 
cope  with  the  increased  transit  traffic  in  Hungary  and  of  the  wish 
expressed  by  Hungary  to  consider  projects  related  to  transit  traffic 
through  Hungary,  such  as  the  modernization  and  construction  of  railway 
lines  and  motorways  between  Hegyeshalom  and  Budapest,  and  that  between 
Budapest  and  Kelebia  as priority,  since  these  represent  major  corridors 
for Community  transit. 

A\ 

The  Commission  agrees  to  start  to  examine  with  Hungary,  on  the  basis  of 
this  Exchange  of  Letters  and  referring  to  Article  81  in  the  Europe 
Agreement,  possible  ways  to  contribute  to  the  improvement  of  such 
infrastructure  in  Hungary,  paying  special  attention  to  environmental 
aspects,  inter  alia  combined  transport,  transit  motorways,  waterways 
transport,  without  prejudice  to  appraisal  of  projects  according  to 
existing  procedures." 

If  the  foregoing  is  acceptable  to  Hungary,  I have  the  honour  to  propose 
that  this  letter, together  with  Your  Excellency's  reply  to  that  effect, 
shall  constitute  the  replacement  of  the  Exchange  of  Letters  signed  on 
16th December  1991,  which  shall  enter  into  force  on  the' date  of  Your 
Excellency's  reply  and  be  applicable  as  from the entry  into  force  of  the 
Europe Agreement. 

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

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

On behalf  of  the  Community. 

^4 

Agreement  in the  form  of  an 
Exchange of  letters  replacing  the 

Exchange of  letters between  the 
European  Economic  Community  ("the  Community")  and  Hungary 
on  land  transport  infrastructure 

signed  in Brussels on  16th December  1991 

B. 

Letter  from  Hungary 

Sir, 

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

"Upon  the  occasion  of  the  signature  on  16th  December  of  the  Europe 
Agreement  between  the Communities  and their  Member  States  and  Hungary  an 
Agreement  in  the  form  of  an  Exchange  of  Letters  between  the  Community 
and  Hungary  concerning  land  transport  infrastructure  was  signed.  The 
Europe Agreement  has not yet  come  into  force. 

Since  the  signature  of  the  Exchange  of  Letters,  Hungary  adopted  law 
N° LXXXII  of  1991  on  vehicle  taxes.  The  parties  consider  it  necessary 
to  come  to  an  agreement  through  the  present  Exchange  of  letters,  to 
amend  the  relevant  provisions  of  the Exchange  of  letters  signed  on  16th 
December  1991 to take  account  thereof. 

Accordingly,  I propose  that  the  text  of  the  Exchange  of  Letters  signed 
on  16th December  1991 be replaced  by the  following  text: 

"I  have  the  honour  of  confirming  to you  herewith  that  the  Community  has 
full  understanding  of  the  infrastructural  and  environmental  problems 
Hungary  is  facing  in  the  area  of  transport  and  shall,  within  the 
framework  of  the  financial  mechanisms  provided  for  in  the  Europe 
Agreement,  provide,  as  appropriate,  financing  for  the  improvement  of 
land  transport  infrastructure,  including  roads,  railways,  inland 
waterways  and  combined  transport. 

In  this  context,  I  take  note  of  Hungary's  explanation  of  the  urgent 
need  for  financial  assistance  to  enable  Hungarian  infrastructure  to 
cope  with  the  increased  transit  traffic  in  Hungary  and  of  the  wish 
expressed  by  Hungary  to  consider  projects  related  to  transit  traffic 
through  Hungary,  such  as  the  modernization  and  construction  of  railway 
lines  and  motorways  between  Hegyeshalom  and  Budapest,  and  that  between 
Budapest  and  Kelebia  as  priority,  since  these  represent  major  corridors 
for Community  transit. 

The  Commission  agrees  to  start  to  examine  with  Hungary,  on  the  basis  of 
this  Exchange  of  Letters  and  referring  to  Article  81  in  the  Europe 
Agreement,  possible  ways  to  contribute  to  the  improvement  of  such 
infrastructure  in  Hungary,  paying  special  attention  to  environmental 
aspects,  inter  alia  combined  transport,  transit  motorways,  waterways 
transport,  without  prejudice  to  appraisal  of  projects  according  to 
existing  procedures. " 

71 

X'y 

If the  foregoing  is acceptable  to  Hungary,  I have  the  honour  to  propose 
that  this  letter,  together  with  Your  Excellency's  reply  to  that  effect, 
shall  constitute  the  replacement  of  the  Exchange  of  Letters  signed  on 
16th December  1991,  which  shall  enter  into  force  on  the  date  of  Your 
Excellency's  reply  and be applicable  as  from the entry  into  force  of  the 
Europe Agreement. 

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

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

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

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

For  the Government  of  Hungary, 

u 

/c 

AGREEMENT 

in  the  form  of  exchanges  of  letters  modifying  the  exchanges  of  letters 
on transit  signed  together with the Association  Agreement  on  16  December 
1991  between  the  European  Communities  and  their  Member  States  and  the 
Czech  and  Slovak Federal Republic  (CSFR),  and with  the  Interim  Agreement 
between  the  European  Economic  Community  and  the  CSFR(^);  and  exchanges 
of  letters  replacing  the  exchanges  of  letters  on  infrastructure  signed 
together  with  the Association  Agreement  between  the  European  Communities 
and  their  Member  States  and  the  CSFR,  and  with  the  Interim  Agreement 
between  the European  Economic  Community  and  the CSFR (2). 

COUNCIL  DECISION 
/92 
(EEC) N° 

OF 

1992 

Concerning  the  conclusion  of  the Agreements  in  the  form  of  exchanges  of 
letters  amending  the  exchanges  of  letters  on  transit  signed  together 
with  the  Association  Agreement  on  16 December  1991  between  the  European 
Communities  and  their  Member  States  and  the  CSFR  and  to  the  Interim 
Agreement  between  the  European  Economic  Community  and  the  CSFR  as  well 
as  exchanges  of  letters  replacing  the  exchanges  of  letters  on 
infrastructure  signed  together  with  the  Association  Agreement  between 
the  European  Communities  and  their  Member  States  and  the  CSFR  and  with 
the  Interim  Agreement  between  the  European  Economic  Community  and  the 
CSFR. 

THE COUNCIL  OF THE EUROPEAN  COMMUNITIES, 

Having  regard  to  the  treaty  establishing  the  European  Economic 
Community,  and  in particular  Article  113 there of, 

Having  regard  to the proposal  of the Commission, 

Whereas  the  exchanges  of  letters  on  transit  signed  together  with  the 
Association  Agreement  and with the  Interim  Agreement  on  16 December  1991 
should  be  amended  ; whereas  the  exchanges  of  letters  on  infrastructure 
signed  together  with  the  Association  Agreement  and  with  the  Interim 
Agreement  on  16  December  1991  should  be  replaced  ;  whereas  the 
Agreements  in  the  form  of  exchanges  of  letters  agreed  to  this  effect 
should  be  concluded. 

(1) OJ  NO 

, 1992 

Tel  r p h o n e:  d i r e ct 
/ A u 4 / I n r l e 2 b / w A / c o u n . d e c ( 1) m) 

l i ne  21 

e « c h a n ge  2 1 5 . 1 1 . 11 

•  T e l ex  COMEU  B  21877 

-  T e l e g r a p h ic 

. l d d i e sa 

i-jMtUK  & i , 

^f 

HAS ADOPTED  THIS DECISION  : 

- 2 

Article  1 

The  Agreements  in  the  form  of  exchanges  of  letters  amending  the 
exchanges  of  letters  on  transit  signed  together  with  the  Association 
Agreement  between  the  European  Communities  and  their  Member  States  on 
the  one  hand  and  the  CSFR  on  the  other  hand  and  with  the  Interim 
Agreement  between  the  European  Economic  Community  and  the  CSFR  and 
replacing  the  exchanges  of  letters  on  infrastructure  signed  together 
with  the  Association  Agreement  between  the  European  Communities  and 
their  Member  States  on  the  one  hand  and  the  CSFR  on  the  other  hand  and 
with  the  Interim  Agreement  between  the  European  Economic  Community  on 
the  one  hand  and  the  CSFR  on  the  other  hand  are  hereby  approved  on 
behalf  of the Community. 

The  texts  of  the  Agreements  in  the  form  of  exchanges  of  letters  are 
annexed  to this decision. 

The  President  of  the  Council  is  hereby  authorized  to  designate  the 
person  empowered  to sign the Agreements  in order  to bind  the  Community. 

Article  2 

Done  at Brussels, 

1992 

For the  Council 
The  President 

A g r e e m e nt  in  t he  f o rm  of  an 
Exchanrje  of  l«»tterr,  a m e nd incj  t he 

Exchanges of  letters between  the 
European Economic Community  ("the  Community") 
and the CSFR  concerning  transit 

signed  in Brussels on  16th December  1991 

Letter  from the Community 

Sir, 

Upon  the  occasion  of  the  signatures  on  16th  December  of  the  Europe 
Agreement  between  the  Communities  and  their  Member  States  and  the  CSFR 
and  of  the  Interim  Agreement  on trade  and  trade  related  matters  between 
the  European  Economic  Community  ("the  Community")  and  the  European  Coal 
and  Steel  Community  and the CSFR  Agreements  in the  form  of  Exchanges  of 
letters  between  the  Community  and  the  CSFR  concerning  transit  were 
signed.  The  Europe Agreement  has  not  yet  come  into  force.  The  Interim 
Agreement  came  into force on  1st March 1992. 

Since  the  signature  of the Exchanges  of  letters,  the CSFR  increased  the 
fee  for  taxable  transit permits.  This  decision  had  consequences  on  the 
arrangements  made  in  December  concerning  transit  and  the  parties 
consider  it  necessary  to  come  to  an  agreement  through  the  present 
Exchange  of  letters, to  amend  the  relevant  provisions  of  the  Exchanges 
of  letters signed on 16th December  1991 to take  account  thereof. 

Accordingly,  I  propose  that  the  Exchanges  of  letters  signed  on 
16th December  1991 be amended  as follows : 

In paragraph  2) the following  sentence  shall  be  inserted  after  the  first 
sentence  of  the  first  alinea:  "The  fee  per  taxable  permit  is  18.500 
Czechoslovak crowns." 

The  following  alineas  shall  be  added  after  the  second  alinea  of 
paragraph  2)  :  "Both  sides  agreed  that  if  the  transit  situation  on  the 
territory  of  former  Yugoslavia  is  not  normalized  they  will  jointly 
examine  before  the  end  of  the  year  the  possible  changes  concerning  the 
above  mentioned  arrangements."  "Changes  in  the  above  provisions  can  be 
made by  common agreement between  the parties." 

If the  foregoing  is acceptable  to the CSFR,  I have  the  honour  to  propose 
that  this  letter, together with  Your  Excellency's  reply  to  that  effect, 
shall  constitute  an  amendment  to  the  Exchanges  of  letters  signed  on 
16th December  1991  which  shall  enter  into  force  on  the  date  of  Your 
Excellency's  reply  and be applicable  as  from  15th March  1992. 

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

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

On  Ix'h.il f  ol  U n-  O  i m m u n i t y, 

Agreement  in  the  form  of  an 
Exchange  of  letters  amending  the 

Exchanges  of  letters  between  the 
European  Economic  Community  ("the  Community") 
and  the  CSFR  concerning  transit 

signed  in  Brussels  on  16th  December  1991 

B. 

Letter  from  the  CSFR 

Sir, 

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

"Upon  the  occasion  of  the  signatures  on  16th  December  of  the  Europe 
Agreement  between  the  Communities  and  their  Member  States  and  the  CSFR 
and  of  the  Interim  Agreement  on  trade  and  trade  related  matters  between 
the  European  Economic  Community  ("the  Community")  and  the  European  Coal 
and  Steel  Community  and  the  CSFR  Agreements  in  the  form  of  Exchanges  of 
letters  between  the  Community  and  the  CSFR  concerning  transit  were 
signed.  The  Europe  Agreement  has  not  yet  come  into  force.  The  Interim 
Agreement  came  into  force  on  1st  March  1992. 

Since  the  signature  of  the  Exchanges  of  letters,  the  CSFR  increased  the 
fee  for  taxable  transit  permits.  This  decision  had  consequences  on  the 
arrangements  made  in  December  concerning  transit  and  the  parties 
consider  it  necessary  to  come  to  an  agreement  through  the  present 
Exchange  of  letters,  to  amend  the  relevant  provisions  of  the  Exchanges 
of  letters  signed  on  16th  December  1991  to  take  account  thereof. 

Accordingly,  I  propose  that  the  Exchanges  of  letters  signed  on 
16th  December  1991  be  amended  as  follows  : 

In  paragraph  2)  the  following  sentence  shall  be  inserted  after  the  first 
sentence  of  the  first  alinea:  "The  fee  per  taxable  permit  is  18.500 
Czechoslovak  crowns." 

The  following  alineas  shall  be  added  after  the  second  alinea  of 
paragraph  2)  :  "Both  sides  agreed  that  if  the  transit  situation  on  the 
territory  of  former  Yugoslavia  is  not  normalized  they  will  jointly 
examine  before  the  end  of  the  year  the  possible  changes  concerning  the 
above  mentioned  arrangements."  "Changes  in  the  above  provisions  can  be 
made  by  common  agreement  between  the  parties." 

If  the  foregoing  is  acceptable  to  the  CSFR,  I  have  the  honour  to  propose 
that  this  letter,  together  with  Your  Excellency's  reply  to  that  effect, 
shall  constitute  an  amendment  to  the  Exchanges  of  letters  signed  on 
16th  December  1991  which  shall  enter  into  force  on  the  date  of  Your 
Excellency's  reply  and  be  applicable  as  from  15th  March  1992. 

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

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

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

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

For  the  Government  of  the  CSFR, 

2' 

Agreement  in the  form of  an 
Exchange of  letters replacing  the 

Exchanges of  letters between  the 
European Economic Community  ("the  Community") and  the  CSFR 
on  land transport  infrastructure 

signed  in Brussels on  16th December  1991 

A. 

Letter  from  the  Community. 

Sir, 

Upon  the  occasion  of  the  signature  on  16th  December  of  the  Interim 
Agreement  on  trade  and  trade  related  matters  between  the  European 
Economic  Community  ("the  Community")  and  the  European  Coal  and  Steel 
Community  and  the  CSFR  an  Agreement  in  the  form  of  an  Exchange  of 
Letters  between  the  Community  and  the  CSFR  concerning  land  transport 
infrastructure  was  signed.  The  Interim  Agreement  came  into  force  on 
1st March  1992. 

Since  the  signature  of  the  Exchange  of  Letters,  the  CSFR  increased  the 
fee  for  taxable  transit  permits.  This  law  had  consequences  on  the 
arrangements  made  in  December  concerning  transit  and  the  parties 
consider  it  necessary  to  come  to  an  agreement  through  the  present 
Exchange of  letters, to amend the relevant  provisions  of  the  Exchange  of 
letters  signed  on  16th December  1991 to take  account  thereof. 

Accordingly,  I propose  that  the  text  of  the  Exchange  of  Letters  signed 
on  16th December  1991 be replaced  by the  following  text: 

"I have  the  honour  of  confirming  to you  herewith  that  the  Community  has 
full understanding  of the  infrastructural and  environmental  problems  the 
CSFR  is  facing  in  the  area  of  transport  and  shall, within  the  framework 
of  the  financial  mechanisms  provided  for,  provide,  as  appropriate, 
financing  for  the  improvement  of  land  transport  infrastructure, 
including  combined  transport. 

In  this  context, -I  take  note- of  the  CSFR's  explanation  of  the  urgent 
need 
transport 
infrastructure  to cope with the increased  transit  traffic  in  the  CSFR. 

financial  assistance  to  enable  CSFR 

land 

for 

The  parties  agree  to  seek,  in  the  context  of  the  existing  Trade  and 
Cooperation  Agreement,  possible  ways  and  means  to  contribute  to  the 
improvement  of  such  infrastructure  in the CSFR, paying  special  attention 
to  border  crossings  and  nearby  areas,  combined  transport,  transit 
motorways,  waterways  transport  and  environmental  aspects,  without 
prejudice  to appraisal  of  projects according  to existing  procedures. 

The  parties  further  agree  to  start,  at  their  earliest  convenience, 
discussions  about possible Community  financial  assistance. 

The  CSFR will  consider  further  reducing  the  rate  of  taxable  permits  for 
Community  hauliers  according  to progress  in the  above  discussions." 

If  the  foregoing  is  acceptable  to  the  CSFR  ,  I  have  the  honour  to 
propose  that  this  letter, together  with  Your  Excellency's  reply  to  that 
effect,  shall  constitute  the  replacement  of  the  Exchange  of  letters 
signed  on  16th December  1991, which  shall  enter  into  force  on  the  date 
of  Your  Excellency's  reply  and be applicable  as  from  1st March  1992. 

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

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

On  behalf  of  the  Community. 

11 

Agreement  in the^ formjof  an 
Exchange  of  letters  replacing  the 

Exchanges of  letters between  the 
European Economic Community  ("the  Community")  and  the  CSFR 
on  land  transport  infrastructure 

signed  in Brussels on  16th December  1991 

Letter  from the CSFR. 

Sir, 

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

"Upon  the  occasion  of  the  signature  on  16th  December  of  the  Interim 
Agreement  on  trade  and  trade  related  matters  between  the  European 
Economic  Community  ("the  Community")  and  the  European  Coal  and  Steel 
Community  and  the  CSFR  an  Agreement  in  the  form  of  an  Exchange  of 
Letters  between  the  Community  and  the  CSFR  concerning  land  transport 
infrastructure  was  signed.  The  Interim  Agreement  came  into  force  on 
1st March  1992. 

Since  the  signature  of  the  Exchange  of  Letters,  the  CSFR  increased  the 
fee  for  taxable  transit  permits.  This  law  had  consequences  on  the 
arrangements  made  in  December  concerning  transit  and  the  parties 
consider  it  necessary  to  come  to  an  agreement  through  the  present 
Exchange  of  letters, to amend  the relevant  provisions  of  the Exchange  of 
letters  signed  on  16th December  1991 to take  account  thereof. 

Accordingly,  I propose  that  the  text  of  the  Exchange  of  Letters  signed 
on  16th December  1991 be replaced  by  the  following  text: 

"I have  the  honour  of  confirming  to  you  herewith  that  the  Community  has 
full understanding  of the  infrastructural  and environmental  problems  the 
CSFR  is  facing  in the  area  of .transport  and  shall,  within  the  framework 
of  the  financial  mechanisms  provided  for,  provide,  as  appropriate, 
financing  for  the  improvement  of  land  transport  infrastructure, 
including  combined  transport. 

In  this  context,  I  take  note  of  the  CSFR's  explanation  of  the  urgent 
transport 
need 
infrastructure to cope with  the  increased  transit  traffic  in the  CSFR. 

to  enable  i\SFK  land 

financial  assistance 

for 

The  parties  agree  to  seek,  in  the  context  of  the  existing  Trade  and 
Cooperation  Agreement,  possible  ways  and  means  to  contribute  to  the 
improvement of  such  infrastructure  in the CSFR,  paying  special  attention 
to  border  crossings  and  nearby  areas,  combined  transport,  transit 
motorways,  waterways  transport  and  environmental  aspects,  without 
prejudice  to appraisal of  projects  according  to existing  procedures. 

V, 

The  parties  further  agree  to  start,  at  their  earliest  convenience, 
discussions  about possible Community  financial  assistance. 

The  CSFR will  consider  further  reducing  the  rate  of  taxable  permits  for 
Community  hauliers according to progress  in the above discussions." 

If  the  foregoing  is  acceptable  to  the  CSFR  ,  I  have  the  honour  to 
propose  that  this  letter, together  with  Your  Excellency's  reply  to  that 
effect,  shall  constitute  the  replacement  of  the  Exchange  of  letters 
signed  on  16th December  1991, which  shall  enter  into  force  on  the  date 
of Your Excellency's  reply and be applicable  as  from  1st March  1992. 

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

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

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

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

For the Government  of  the  CSFR, 

?•>" 

Agreement  in the  form of  an 
Exchange of  letters replacing  the 

Exchanges of  letters between  the 
European  Economic  Community  ("the  Community")  and  the  CSFR 
on  land transport  infrastructure 

signed  in Brussels  on  16th December  1991 

Letter  from the  Community. 

Sir, 

Upon  the  occasion  of  the  signature  on  16th  December  of  the  Europe 
Agreement  between  the  Communities  and  their  Member  States  and  the  CSFR 
an Agreement  in the  form of  an Exchange  of Letters  between  the  Community 
and  the  CSFR  concerning  land  transport  infrastructure  was  signed.  The 
Europe  Agreement  has not yet come  into  force. 

Since  the  signature  of  the  Exchange  of  Letters,  the  CSFR  increased  the 
fee  for  taxable  transit  permits.  This  law  had  consequences  on  the 
arrangements  made  in  December  concerning  transit  and  the  parties 
consider  it  necessary  to  come  to  an  agreement  through  the  present 
Exchange of  letters, to amend the relevant  provisions  of  the  Exchange  of 
letters  signed  on  16th December  1991 to take  account  thereof. 

Accordingly,  I  propose  that  the  text  of  the  Exchange  of  Letters  signed 
on  16th December  1991 be replaced  by the  following  text: 

"I have  the  honour  of  confirming  to  you  herewith  that  the  Community  has 
full understanding  of the  infrastructural  and  environmental  problems  the 
CSFR  is  facing  in  the  area  of  transport  and  shall,  within  the  framework 
of  the  financial  mechanisms  provided  for  in  the  Europe  Agreement, 
provide,  as  appropriate,  financing  for the  improvement  of  land  transport 
infrastructure,  including  combined  transport. 

In  this  context,  I  take  note  of  the  CSFR's  explanation  of  the  urgent 
need 
transport 
infrastructure to  cope with  the  increased  transit  traffic  in the  CSFR. 

financial  assistance 

to  enable 

CSFR 

land 

for 

The  parties  agree  to  seek, on  the  basis  of  this  Exchange  of  Letters  and 
referring  to Article  81 in the Europe Agreement,  possible ways  and  means 
to  contribute  to  the  improvement  of  such  infrastructure  in  the  CSFR, 
paying  special  attention  to  border  crossings  and  nearby  areas,  combined 
transport,  transit  motorways,  waterways  transport  and  environmental 
aspects,  without  prejudice  to  appraisal  of  projects  according  to 
existing  procedures. 

The  parties  further  agree  to  start,  at  their  earliest  convenience, 
discussions  about  possible Community  financial  assistance. 

The  CSFR  will  consider  further  reducing  the  rate  of  taxable  permits  for 
Community  hauliers  according  to progress  in the above  discussions." 

If  the  foregoing  is  acceptable  to  the  CSFR  ,  I  have  the  honour  to 
propose  that  this  letter,  together  with  Your  Excellency's  reply  to  that 
effect,  shall  constitute  the  replacement  of  the  Exchange  of  letters 
signed  on  16th December  1991, which  shall  enter  into  force  on  the  date 
of  Your  Excellency's  reply  and  be  applicable  as  from  the  entry  into 
force of  the Europe  Agreement. 

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

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

On behalf  of  the  Community. 

)1 

Agreement  in the  form of an 
Exchange of  letters  replacing  the 

Exchanges of  letters between  the 
European  Economic Community  ("the  Community")  and  the  CSFR 
on  land  transport  infrastructure 

signed  in Brussels on  16th December  1991 

B. 

Letter  from the CSFR. 

Sir, 

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

"Upon  the  occasion  of  the  signature  on  16th  December  of  the  Europe 
Agreement  between  the  Communities  and  their  Member  States  and  the  CSFR 
an Agreement  in the  form of an Exchange of Letters between  the  Community 
and  the  CSFR  concerning  land  transport  infrastructure  was  signed.  The 
Europe Agreement  has not yet  come  into force. 

Since  the  signature  of  the  Exchange  of  Letters,  the  CSFR  increased  the 
fee  for  taxable  transit  permits.  This  law  had  consequences  on  the 
arrangements  made  in  December  concerning  transit  and  the  parties 
consider  it  necessary  to  come  to  an  agreement  through  the  present 
Exchange of  letters, to' amend  the relevant  provisions  of  the  Exchange  of 
letters  signed  on  16th December  1991 to take account  thereof. 

Accordingly,  I propose  that  the  text  of  the  Exchange  of  Letters  signed 
on  16th December  1991 be replaced  by  the  following  text: 

"I have  the  honour  of  confirming  to you  herewith  that  the  Community  has 
full understanding  of the  infrastructural and environmental  problems  the 
CSFR  is  facing  in the  area  of  transport  and  shall, within  the  framework 
of  the  financial  mechanisms  provided  for  in  the  Europe  Agreement, 
provide,  as appropriate,  financing  for the  improvement  of  land  transport 
infrastructure,  including  combined  transport. 

In  this  context,  I  take  note  of  the  CSFR's  explanation  of  the  urgent 
transport 
need 
infrastructure to cope with  the  increased  transit  traffic  in  the  CSFR. 

financial  assistance  to  enable  CSFR 

land 

for 

The  parties  agree  to  seek,  on  the basis  of  this  Exchange  of  Letters  and 
referring  to Article 81  in the Europe Agreement,  possible  ways  and  means 
to  contribute  to  the  improvement  of  such  infrastructure  in  the  CSFR, 
paying  special  attention  to border  crossings  and  nearby  areas,  combined 
transport,  transit  motorways,  waterways  transport  and  environmental 
aspects,  without  prejudice  to  appraisal  of  projects  according  to 
existing  procedures. 

The  parties  further  agree  to  start,  at  their  earliest  convenience, 
discussions  about possible Community  financial  assistance. 

The  CSFR  will  consider  further  reducing  the  rate  of  taxable  permits  for 
Community  hauliers  according  to progress  in the above discussions." 

If  the  foregoing  is  acceptable  to  the  CSFR  ,  I  have  the  honour  to 
propose  that  this  letter,  together  with  Your  Excellency's  reply  to  that 
effect,  shall  constitute  the  replacement  of  the  Exchange  of  letters 
signed  on  16th December  1991, which  shall  enter  into  force  on  the  date 
of  Your  Excellency's  reply  and  be  applicable  as  from  the  entry  into 
force of the Europe  Agreement. 

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

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

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

For the Government  of  the  CSFR, 

"1 

ISSN 0254-1475 

COM(92) 203 final 

DOCUMENTS 

EN 

li 

Catalogue number: CB-CO-92-217-EN-C 

ISBN 92-77-44258-1 

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