CELEX: 51973PC0361
Language: en
Date: 1973-03-08 00:00:00
Title: Recommendation for REGULATION (CEE) OF THE COUNCIL on the conclusion of a trade agreement between the European Economic Community and the Eastern Republic of Uruguay and adopting provisions for its implementation

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73) 361
Vol. 1973/0056
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak--- COMMISSION OP THE EUROPEAN COMMUNITIES
                                              COM(73)361 final
                                              Brussels , 8 March 1973
                                Recommendation for
                        REGULATION (CUE) OP THE COUNCIL
             on "the conclusion of a trade agreement between the
             European Economic Community and the Eastern Republic of
             Uruguay and adopting provisions for its implementation
                   ( submitted to the Council by the Commission )
   COM(73 ) 361 final
 ---pagebreak---               Recommendation from the Commission to the Council on the
              conclusion of a trade agreement "between the SEC and Uruguay
1 . At its meeting on 28 February 1972 the Council adopted guide–lines for
    the negotiations with Uruguay on a trade agreement . On this basis three
    negotiating sessions were hold (April and June 1972 > February 1973 )
    between the Commission and an Uruguayan delegation.
2. The French text of the Agreement between the European Economic Community
    and Uruguay was finalised at the last negotiating session held on
    21 February 1973 and was the subject of an exchange of letters between
    the two heads of delegation confirming their agreement on its content *
    The Commission delegation was led by Mr. W. Ernst , Director at the
    Directorate-General for External Relations of the Commission, and the .
    Uruguayan delegation by H.E. F. Griinwaldt–Raoas so r Ambassador Extraordinary
    and Plenipotentiary , Head of the Uruguayan Mission to the European
    Communities .
3 . The negotiated texts are the following :
    – The Trade Agreement between the European Economic Community and the
      Eastern Republio of Uruguay and the annexes thereto ,
    – four exchanges of confidential letters (separate restricted
      distribution).
    The French texts of the documents have already been made available
    to representatives of Member States to the Article 113 Committee .
                                                              4 « •/ • • 9
 ---pagebreak--- The Agreement and. annexes thereto and the exchanges of confidential
letters are the outcome of the negotiations "between the Uruguay
and Community delegations. They are consistent with the guide-lines
adopted "by the. Council at its meeting on 28 February , 1972 *
The Commission therefore considers that it has completed the task
entrusted to it by the Council , and recommends that the Council initiate
the procedures for the signature and conclusion of the Agreement with
Uruguay. .
With a view to the conclusion and implementation of the Agreement , the
Commission herewith transmits to the Council :
– a recommendation . for a regulation on the conclusion of the Agreement
  and the annexes thereto , and adopting provisions for its
■ implementation.
A further recommendation by the Commission to the Council is
distributed separately on a restricted, basis . It concerns a
recommendation for a Council decision on the conclusion of the exchanges
of confidential letters between the European Economic Community and
Uruguay.
 ---pagebreak---          RECOMMENDATION FOR REGULATION (EEC )         OP TEE COUNCIL
         on the conclusion of a Trade Agreement between the European
         Economic Community and the Eastern Republic of Uruguay and
         adopting provisions for its implementation
THE COUNCIL OF THE EUROPEAN COMMUNITIES r
HAVING REGARD to the Treaty establishing the European Economic
Community f and in particular Articles 113 and 114 thereof j
HAVING REGARD to the Recommendation of the Commission j
WHEREAS the Trade Agreement negotiated between the European Economic
Community and the Eastern Republic of Uruguay should be concluded j
HAS ADOPTED THIS REGULATION 1
                              Article 1
The Trade Agreement between the European Economic Community and the
Eastern Republic of Uruguay , the text of which is annexed to this
Regulation , shall be concluded on behalf of the Community,
                              Article 2
The President of the Council is hereby authorised to designate the
persons empowered to sign the Agreement and to confer on them the
powers required in order to bind the Community.
 ---pagebreak---                               Article 3
The Community shall be represented on the Joint Committee provided for
in Article 5 of the Agreement by the Commission , assisted by representatives
of the Member States .
                   -   " '    Article 4
This Regulation shall enter into force on the third day following its
publication in the Offioial Journal of the European Communities .
This Regulation shall be binding in its entirety and direotly applicable
in all Member States .     .. '   ■
Done at Brussels ,                         For' the Council
                                           The President
 ---pagebreak---                              TRADE AGREMENT
       between the European. Economic Community and the Eastern
                            Republic of Uruguay
THE COUNCIL OF THE EUROPEAN COMMUNITIES , of the one part , and
THE GOVERNMENT OF THE EASTERN REPUBLIC OF URUGUAY , of the other part ,
Determined to consolidate and extend the traditional economic and
trade relations between the European Economic Community and the
Eastern Republic of Uruguay ;
Adhering to the spirit of cooperation which inspires them ;
Recognizing the importance of the harmonious development of trade
between the Contracting Parties ;                                  <
Desiring to contribute to the expansion of trade and the development
of economic cooperation on a basis advantageous to both Contracting
Parties ;                        ■   ;
Have decided to conclude a Trade Agreement between the European
Economic Community and the Eastern Republic of " Uruguay and to this end
have designated as their Plenipotentiaries :
THE COUNCIL OF THE EUROPEAN COMMUNITIES :   .
THE GOVERNMENT OF THE EASTERN REPUBLIC - OF URUGUAY :. ■ •
Who , having exchanged their Full Powers , found in good and due form ;
HAVE AGREED AS FOLLOWS :
 ---pagebreak---                                Article 1
1.     The Community and Uruguay shall , in their trade relations ,
grant each other most- favoured-nation treatment in all matters
relating to.: ... .       .
- customs duties and charges of ' all kinds on imports or exports ,
   including the procedures for collecting such duties and charges ;
- regulations concerning customs clearance , transit , warehousing or
   trans-shipment of imported or exported products ;
- taxes and other internal charges directly or indireptly imposed
   on imported or exported goods or services ;
- regulations concerning payment in respect of trade or exchange of
   services , including the allocation of currency and the transfer
   of such payments ;
- regulations affecting the sale , purchase , transport , distribution
   and use of goods and services on the internal market .
2.     Paragraph 1 shall not apply to :
( a)   advantages granted by ;the Contracting Parties to neighbouring
       countries to facilitate frontier-zone traffic ;
(b )   advantages granted by the Contracting Parties with the object
       of establishing a customs union or a free trade area ;
(c)    Other advantages which the Contracting Parties grant to
       particular countries in conformity with the General
       Agreement on Tariffs and Trade .
 ---pagebreak---                                Article 2
The Community , in application of its common liberalization
arrangements , and Uruguay shall grant each other the highest degree
of liberalization of imports and exports which they generally apply
to third countries .
 ---pagebreak---                                    «V
                              Article 3   •
1.    The Community and Uruguay shall establish mutual cooperation
in agricultural matters .* '
To this end :
( a)  they shall regularly inform each other of developments in
      their markets and in their reciprocal trade ;
(b )  they shall give sympathetic consideration to the availability
      of exports by which shortages may be alleviated ;
(c)   they shall cooperate in the study of problems which might
      arise from the application of health protection or plant
      protection measures ;
(d)   they shall cooperate at international level in the solution
      of problems of common interest .
The measures referred to in ( a), (b ) and ( c ) shall be implemented
by the Joint Committee provided for in Article
2.    Talcing into account the information referred to in
paragraph 1(a)* the Community and Uruguay shall endeavour to take
steps to avoid situations calling for protective measures in their
reciprocal trade in agricultural products .
If such a situation should arise or threaten to arise for an
agricultural product in which either Party has a substantial interest ,
the Parties shall , in conformity with their international obligations ,
enter into consultations which should , so far as possible , precede
the application of protective measures .     Such measures must be
consistent with the international obligations of the Parties .
 ---pagebreak---                                Article
Within, the framework of cooperation in agricultural matters between
the Contracting Parties :                              ■-
1.     The provisions of Annex I shall apply to imports into the
      Community of certain beef and veal products .
2.     Uruguayan exports of beef and veal to the Community shall
       comply with the procedures set out in Annex 1 .
 ---pagebreak---                                   - 6 -
                               Article 5 •
A Joint Committed' shall b6 established consisting of representatives
of the Community and of Uruguay .    The Joint Committee shall meet
once a year at an agreed date and place .    Extraordinary meetings
may be convened by agreement .
The Joint Committee shall ensure the proper functioning of this
Agreement and shall examine all matters which may arise in the
course of its implementation .
The Joint Committee shall also endeavour to find ways and means of
furthering economic and commercial cooperation between the Community
and Uruguay , which promotes trade relations and benefits both
Parties .
It may put forward any suggestions serving the objectives of this
Agreement .
The Joint Committee may set up specialized subcommittees to assist
it in the performance of its tasks .
 ---pagebreak---                              Article 6
The provisions of this Agreement 6hall be substituted for those
provisions of agreements concluded between Member States and
Uruguay which are incompatible with or identical with them .
 ---pagebreak---                                 Article 7
1.    The Agreement, shnl.X apply to the European territories where
the Treaty establishing the Eurppean Economic Community applies ,
and to the territory , of .the Eastern Republic of Uruguay .
2.    The Agreement shall apply also to the French overseas
departments so fax as concerns those of the fields covered by it
Which correspond to those listed in the first subparagraph of
Article 227(2) of the Treaty establishing the European Economic
Community .
                     \
The Conditions for applying to those departments the provisions of
the Agreement relating to other fields shall be decided at a later
date by agreement between the Contracting Parties .
 ---pagebreak---                              Article 8
The Annexes shall form an integral part of the Agreement .
 ---pagebreak---                                   10 -
                            Article 9
1.    This Agreement shall enter into force on the first day of the
month following the date on which the Parties have notified each
other of the completion of the procedures necessary for this
purpose .  It is concluded for three years .
2.    It shall be prolonged from year to year if neither Party
denounces it three months before its expiry date .
                                                   • • */
 ---pagebreak---                                    - 11
                               Article 10
This Agreement is drawn up in two copies in the Danish , Dutch ,
English , French , German , Italian and Spanish languages , these
texts being equally authentic .
                                                          • •/• « •
 ---pagebreak--- ANNEX I ---pagebreak---                                             - 12
                                          ANNEX I
                      Application of Article k of the Agreement
A.     Application of Article 4(1 ) of the Agreement
                                     • Article 1
1.     When implementing its market organization for beef and veal
the Community shall endeavour to fix the suspension of the levy on
imports of the products listed below at the highest possible level#
This suspension shall be so fixed that the levy on those products
does not exceed 55 per cent of the total levy .
Common      II
Custor.s
Tariff      i'
             i
                                             Description of goods
headxng     i
No
02.01      I   Meat and edible offals of the animals falling within
           I
               heading No 01.01 . 01.02 , 01.03 , or 01.04 , fresh , chilled
           I
               or frozen :
               A.  Meat :
           !                     ■ "    ■
           i       II .   Of bovine animals
                          ( a) domestic                                        ;
            !                  ( 2) frozen
                                          ( bb ) forequarters
                                          ( dd) other :
                                                 ( 22) boned or boneless
                                                        (aaa) forequarters whole#
                                                              or cut into a maximum
                                                              of five pieces , each
                                                              quarter being in a
                                                  .           single block ;
                                                              " compensated" quarters
                                                              in two blocks , one of
                                                              which contains the
                                                              forequarter , wholes or
                                                              cut into a maximum of
            i                                                 five pieces , and the
                                                              other the hindquarter ,
                                                              excluding the •
            |                                                 tenderloin , in one
             j                                                piece
             i      .. .                                (bbb) other
    Meat falling under this subheading may qualify for the suspension
    of the levy only if it is subject to customs or administrative
    control to ensure that it is processed .                                 ,
 ---pagebreak---                                              - 13 -
   2.     The cooperation in agricultural matters between the Contracting
   Parties shall include the exchange of information on their trade in ,
   and markets for , the products listed in paragraph 1 .
   3«     If disturbances occur or threaten . to occur on .the Community
   market as a result of measures taken under paragraph 1 , the Community-
   may , after consultation with Uruguay , suspend the application of that
   paragraph until the situation is restored .            Such consultation must
   be concluded within fifteen days from the date of the request for
   consultation.                                   1        ■         '
                                          Article 2
   The Contracting Parties shall each year exchange information in the
   Joint Committee to enable the yearly estimate of the meat intended
   for the processing industry to be drawn up by the Community , as
   provided for in its market organization for beef and veal . ;
                            . .           Article 3
   Quantities of products listed below shall be calculated in terms of
   boneless meat for the purpose of deductions against the annual tariff
   quota at the 20 per cent rate of duty by which the Community is
   bound under the General Agreement - on Tariffs and Trade .
   Common
   Customs
■ Tariff                               Description of goods
 • heading
   No •
   02.01
             . 1
                  Meat and edible offals of the animals fail ling within
               II heading No 01.01 , 01.02 , 01.03 or 01.04-, fresh , chilled
                  or frozen :
                  A. , Meat :
                       II .     Of bovine animals
                                (a)  domestic
                                     ( 2) frozen
                I
                I       , ,
 ---pagebreak---                                   Article b
1.     In order that Uruguay shall not be in a position less favourable
than that of European supplying countries in respect of the levy , the
Community shall , bearing in mind the length of the sea passage , take
measures under its market organization for beef and veal, to ensure
that the levy on the products listed below may , on request , be fixed
in advance .
To that end the Community shall introduce an advance fixing
certificate whose validity shall be limited to thirty days and which
fixes the levy on the basis of the amount applicable on the day on
which the certificate is applied for .       The issue of a certificate
shall be conditional on the lodging , at the time of application , of
a deposit equal to eight units of account per 100 kg net .
2.     If disturbances occur or threaten to occur on the Community
market as a result of measures taken under paragraph 1 , the Community
may , after consultation with Uruguay , suspend the application of that
paragraph until the situation is restored .        Such consultation must
be concluded within ten days from the date of the request for
consultation.
            I
Common      i
Customs
Tariff                         Description of goods
            I
heading     I
No
            ι                                                                -- -
02.01         Meat and edible offals of the animals falling within
              heading No 01.01 , 01.02 , 01.03 or 01.04 . fresh , chilled
              or frozen :
              A.  Meat :
           i      II .   Of bovine animals :
                         (a)  domestic :
                              1.  fresh or chilled
                                                                 • • ■/• • •
 ---pagebreak---                                 - 15 - - ■
B.     Application of Article M2)
                               Article 5
In. order to contribute to the stabilization of the internal Community
market in beef and veal , Uruguay. shsQ.1 maintain an appropriate rate
of delivery . and shall take all measured designed to ensure an orderly
development of its exports to the Community .
In accordance with procedures laid down by administrative cooperation
between their competent authorities , Uruguay shall provide the
Community with all relevant information on exports of beef and veal
and on ruling prices .
 ---pagebreak--- ANNEX II ---pagebreak---                                   - 16 –
                       Joint Declaration No 1
                   on Article 1 of the Agreement
The Contracting Parties agree that the provisions of subparagraph (a)
of Article 1(2) shall also ' apply to the advantages which Uruguay
grants to Bolivia and Paraguay in order to facilitate frontier-zone
traffic .
                                                      • •/ • #
 ---pagebreak---                         Joint Declaration No 2
                    on Article 2 of the Agreement
The Contracting Parties are prepared, to examine r in the Joint
Committee ," the progressive elimination of quantitative or other
restrictions which may...impede . the imports of either Party#
 ---pagebreak---                                   - 18 -
                           Joint Declaration No 3
                       on Article 5 of the Agreement
The Community and Uruguay agree to examine in the Joint Committee ,
with a view to making proposals , measures of cooperation which
would promote, trade relations and benefit both parties , including
measures relating to :
( a)  the promotion of reciprocal exports , and
(b)   steps which might be taken in the light of the desirability
      of improved coordination and having regard to the objectives
      of Uruguay 's development plan .
                                                     • • •/• • •
 ---pagebreak---                   Declaration No"'l by the Community on
                 Article 3 ot the Annex to' the Agreement
In response to a request by Uruguay , the Community is prepared to
examine each year- in the Joint Committee,' after exchanging '
information with Uruguay , whether additional import opportunities
should be provided * by an appropriate method,' under the tariff
quota mentioned in Article 3 of the Annex to the Agreement .
The Community is prepared to carry out this annual examination by
a date such that the additional import opportunities which it allows
may be available from the beginning of the succeeding year . . For
1973 * the examination may be made as soon as possible after the
entry into force of the Agreement *
 ---pagebreak---                                   - 20 -
                           Declaration No 2 by
                  the Community on tariff adjustments
The Community confirms that the system of generalized preferences
which it introduced unilaterally from 1 July 1971 t pursuant to
Resolution No 21 (II ) of 1968 of the second conference of UNCTAD ,
covers a number . of products which have been included following the
requests for tariff concessions put forward by Uruguay during the
negotiations which led to the Agreement signed today .
The Community is prepared , during periodical, reviews of the system
of generalized preferences , to continue to take into account the .
interests of Uruguay .
The Community is also ready to examine , in the Joint Committee , the
question of further tariff adjustments in favour of Uruguayan
products .
The Community understands that Uruguay is in a like spirit ready to
examine , in the Joint Committee , the possibility of tariff
adjustments in favour of Community products and of simplifying and
relaxing consular formalities •
 ---pagebreak---                    Declaration No .3 by the Community
         on certain products of .the Uruguayan craft industry
In response to a request by Uruguay , the Community, declares that it
is prepared to include in the schedule of handicraft products
covered by the Community tariff quota which it opens unilaterally
each year free of customs duty , the following handicraft articles
if accompanied by a certificate issued by the Uruguayan authorities
and recognized by the competent authorities of the Community , .
stating that the goods in question are handmade .                ,
Common
Customs
Tariff                    Description of goods
heading
No ■
ex 61.01   Men 's and boys' outer garments :
           - woollen ponchos
   61.02   Women 's , girls' and infants' outer garments : , ,
           - ex B. Other :                  "             - •'
                     - capes , skirts , and cuts for skirts ,- all of wool
ex 61.06   Shawls , scarves , mufflers , mantillas , veils and the like :
           - of wool
   62.01   Travelling rugs and blankets :
           - B. Other :
                 ex II Of other textile materials
                 - woollen blankets
   62.02   Bed linen , table linen , toilet linen and kitchen linen?
           curtains and other furnishing articles :
           ex B. Other :
                  - double curtains of wool
ex 65.05   Hats and other headgear (including hair nets ) , knitted
           or crocheted , or made up from lace , felt or other
           textile fabric in the piece ( but not from strips ),
           whether or not lined or trimmed :
           - woollen berets
 ---pagebreak---                                  - 22 -
                      Declaration No 1 by Uruguay
            on tariff adjustments and consular formalities
Having taken note of Declaration No 2 by the Community , Uruguay
declares that it is in a like spirit ready to examine , in the Joint
Committee , the possibility of tariff adjustments , applying also to
import surcharges , in favour of products of particular interest to
the Community , account being taken of Uruguay 's balance of payments
situation .
Uruguay is in a like spirit ready to examine the possibility of
simplifying and relaxing consular formalities , including consular
fees , in such a way as to foster trade .  Nevertheless , in view of
the tax revenue which they produce , consular fees can be reduced
only to the extent that they can be replaced by other tax revenue .
 ---pagebreak---                                   - 23 -
                      Declaration No 2 by Uruguay
            on the fixing of values for customs purposes
Uruguay has noted the interest expressed by the Community that
Uruguay should apply the rules laid down by the Customs Cooperation
Council with regard to the fixing of values for customs purposes .
In this respect Uruguay :
- declares that it has set in motion the procedures required by
  its Constitution in order to accede to the Customs Cooperation
  Council ;
- declares that with regard to all goods imported from the
  Community it applies de facto the norms of the Brussels
  Definition as incorporated in the Convention on the valuation
  of goods for customs purposes , signed at Brussels , on
  15 December 19.50 ?
- declares that it is prepared to enter into consultation with
  the Community in the event of differences of opinion on the
  value of products exported by the Community .
 ---pagebreak---                         Declaration No 3 by Uruguay
             on the lodging of deposits prior to importation
In response to a request by the Community for the progressive
abolition of the lodging of deposits prior to importation , Uruguay
declares that it is ready to agree , in the Joint Committee , on
adjustments to these deposits for products of particular interest
to the Community .   It is also ready to enter upon the examination
of such adjustments at the first meeting of the Joint Committee .
Uruguay is also prepared to agree at a later date on a programme
which would meet the Community 's request , as soon as its general
economic situation , in particular its balance of payments , has
improved .
 ---pagebreak---                                   - 25 -
                        Declaration No k by Uruguay
                       on Article 3 of the Agreement
Uruguay declares that it attaches great importance to the
application of Article 3 of the Agreement to its exports of citrus
                                                               /
fruits , rice , linseed oil and barley malt .
                                                     • • •/ •••
 ---pagebreak---                                      26 -
                      Declaration No 5 by Uruguay
                          - on industrial wool
To meet the concern expressed by the Community for preserving the
stability of the Community market for industrial wool production ,
and under the terms of cooperation provided in Article 5 of the
Agreement , Uruguay , while stressing its concern to continue to
increase its industrial wool exports to the Community , declares
that it is prepared at the request of the Community and in a
spirit of cooperation , to examine any difficulties which might
arise or threaten to arise as a result of Uruguayan exports .
Likewise , Uruguay proposes to bring to the attention of the Community
any difficulties which its industrial wool exports might encounter
on the Community market .
                                                       • • •/ • • •
 ---pagebreak---                                   - .27 -
                       Declaration No 6 by Uruguay
                 on Annex I , Article .5 of the Agreement
Uruguay undertakes to supply the oompetent authorities of the'
Community with all relevant information on its exports of beef
and veal , and in particular on shipments made , such as dates of
shipments and names of ships , and the prices obtaining , such as
prices on the Tablada nacional market , prices of the refrigerating
firms , export prices and export charges .
                                                     • • •/• •
 ---pagebreak---                                  v - 28 -
                        Declaration No 7 *>y Uruguay
                           on calves for breeding
 Since the Community has indicated its interest in the importation
 of breeding calves from Uruguay , Uruguay declares that it is
 prepared , at the appropriate time , to consider sympathetically the
 adoption of measures to facilitate the export of breeding calves ,
to the Community .                                           •-
 ---pagebreak---                                  - 29 -
                     Declaration No 8 by Uruguay
                     on questions relating to the
                     importation of beef and veal
Uruguay declares that it attaches great importance to the earliest
possible discussion, in the Joint Committee , of questions relating
to the coefficients applied to beef and veal and the fixed costs
laid down for frozen meat *
                                                       •/ • • •
 ---pagebreak---                                  - 30 -
                      Declaration No 9 by Uruguay
                      on investments in Uruguay
Uruguay confirms that , in the context of mutually advantageous
cooperation , it would welcome an increase in investments by
Community financial, interests such as would contribute to the
development of the Uruguay economy .
Having regard to the wish expressed by the Community to obtain
satisfactory conditions for investment for its financial interests ,
Uruguay declares that its Constitution makes no distinction between
national and foreign financial interests and that consequently its
law applies in the same way to both .   It also declares that under
Article 32 of its Constitution nobody can be deprived of the right
of ownership except in cases of public necessity or public interest
laid down by enacted law , whereby a fair prior compensation is always
paid .
Uruguay also declares its intention to encourage investments by
Community financial interests , especially such investments as would
serve the objectives of its national development plan .
                                                        • • • /• • •
 ---pagebreak---                       Declaration No 10 by Uruguay
                        on the fishing industry
With reference to the Joint Declaration No J5 on Article 5 of the
Agreement , Uruguay declares particular interest in measures to
promote the development of fishing and related industries in
Uruguay and to ensure satisfactory operating conditions for
Community nationals .
 ---pagebreak---                                   - 32 -
                    Exchange of letters on sea transport
Your Excellency ,
With regard to the Trade Agreement between the European Economic
Community and Uruguay , signed today , I have the honour to refer to
the concern which the Community and the Member States expressed to
you , in the course of the negotiations , as regards » obstacles
to trade resulting from sea transport conditions .
I should be obliged if -you would confirm that these problems will
be examined at the first meeting of the Joint Committee , and that
mutually satisfactory solutions will be sought to eliminate
difficulties affecting the development of reciprocal trade and to
ensure the harmonious operation - of such trade , on the basis of an
equality of treatment which would take account of the legitimate
interest and the right of Community operators to participate freely
irt the sea transport of products traded .
Please accept , Your Excellency , the assurance of my highest
consideration .
 ---pagebreak---                                  - 33 -
Your Excellency ,
I have the. honour to acknowledge with thanks receipt of your letter
of today r $ date on the question of s.ea transport .
I can state that the Government of Uruguay is j?eady , in a spirit of
mutual cooperation , to assist in seeking solutions satisfactory to
both parties to eliminate sea transport difficulties affecting the
development of reciprocal trade and to ensure the harmonious
operation of such trade on the basis of an equality of treatment
which would take account of the legitimate interest and the right*
of Uruguay to develop its merchant marine .
I hereby, confirm that Uruguay is ready to examine solutions to . these
questions at the first meeting of the Joint Committee .
Please accept , Your Excellency , the assurance of my highest
consideration .