CELEX: 51973PC0480
Language: en
Date: 1973-03-29 00:00:00
Title: RECOMMANDATION FOR A COUNCIL DECISION concluding an Agreement between the European Economic Community and the Socialist Federal Republic of Yugoslavia on trade in cotton textiles (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (73) 480
Vol. 1973/0084
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                 COM(73)480 final
                                                 Brussels , 29 March 1973
                                  RECOMMANDATION
                              FOR A COUNCIL DECISION
                concluding an Agreement between the European Eco­
                nomic Community and the Socialist Federal Republic
                of Yugoslavia on trade in cotton textiles
                  ( submitted to the Council by the Commission)
  C0II(73 ) 480 final
 ---pagebreak---               DRAFT REO OC lAIIDATI OH
             FOR A COIMCIL DECISIOH
concluding an agreement between the European
Economic Community and the Socialist Federal
Republic of Yugoslavia on trade in cotton textiles
 ---pagebreak---                            EXPL WATORT KEriORfflDUM
1.       When its offer regarding generalized, tariff preferences was in the
course of preparation , the Community considered , as regards cotton textiles
covered by the Long-term Arrangement regarding International Trade in Cotton
Textiles (hereinafter referred to as the "Geneva Arrangement "), and the sub­
stitute products on the "conditional list " of the Kennedy Round , that the
tariff preferences would be granted to the , countries benefiting from the
generalized preferences and signatories to the Long-term Arrangement , this
being for the duration of the Arrangement . However , in its revised offer ,
the Community declared that tariff preferences could also be granted in
respect of these products and for the sane period to benefiting third coun­
tries not belonging to the Geneva Arrangement , which gave with respect to
the Community "similar undertakings " to those which exist under the Long-
term Arrangement .
2.        When Yugoslavia requested the opportunity of benefiting from
preferences for the products in question , the Commission decided that the
similar undertakings to be asked for could be embodied in a bilateral
agreement of the same type as the agreement negotiated by the Community
concerning cotton textiles with seven other supplier countries under Article
4 of the Geneva Arrangement • Consequently the Commission submitted to the
Council a reconmandation for a decision giving the Commission authority to
open negotiations with Yugoslavia for the conclusion of such an agreement .
3.       In a decision of 27 June 1972 , the Council authorized the Commission
to open negotiations with Yugoslavia with the aim of concluding an agreement
on the trade in cotton textiles .
         In accordance with this decision and in consultation with the
Article 113 Committee , the Commission acting on behalf of the Community
conducted negotiations with the Delegation of the Socialist Federal Republic
of Yugoslavia for the conclusion of such an agreement . Following these
                                                                            /.
 ---pagebreak---                                      - 2 -
negotiations , which ended on 1 March 1973 » a draft Agreement was dram tip .
The heads of the two delegations agreed that this draft conformed to the
results of the discussions .
4.        The Commission considers that this draft Agreement represents
a result which is acceptable to the Community . Consequently it recommends
to the Council that the latter approve the result of the negotiations and
give , as soon as possible , an opinion on the draft Decision annexed hereto ,
since the possibility for Yugoslavia of benefiting from generalized prefe­
rences for cotton textiles and other textiles treated as such is subject
to the conclusion of this Agreement .
 ---pagebreak---                         DECISION OP THE COUNCIL
          concluding an agreement between , the European Community
          and the Socialist Federal Republic of Yugoslavia on
                        trade in cotton textiles
THE COUIICIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
and in particular Article 113 thereof ;
Having regard to the recommendation of the Commission !
Whereas it is necessary to conclude the Agreement on trade in cotton tex­
tiles negotiated between the Commission of the European Communities and
the Socialist Federal Republic of Yugoslavia ?
 ---pagebreak--- HAS DECIDED AS FOLLOWS :
                                Article 1
     An Agreement on trade m cotton textiles is hereby concluded in the
name of the Earope an Economic Community with the Socialist Federal Republic
of Yugoslavia .
     The text of this Agreement is annexed to this Decision .
                                Article 2
     The President of the Council is hereby authorized to designate the
person empowered to sign the Agreement and to confer on him the powers
required in order to bind the Community .
Done at Brussels ,
                                              For the Council ,
                                              The President
 ---pagebreak---                 AGREENT
               between the
      EUROPEAN ECONOMIC COIfclUNITY
                 and the
SOCIALIST FEDERAL REPUBLIC OP YUGOSLAVIA
      on trade in cotton textiles
 ---pagebreak--- THE COUNCIL OF THE EUROPEAN COIIMUNITIES ,
on the one hand , and
THE GOVEHKOTJT OF THE SOCIALIST FEDERAL REPUBLIC OP YUGOSLAVIA ,
on the other hand ,
DESIRING to ensure the orderly development of trade in cotton textiles
between the European Community , hereinafter called the "Community" and
Yugoslavia ,
AWARE of the rights and obligations of the Contracting Parties under the
General Agreement on Tariff and Trade ,         1
AWARE that the following provisions are intended to solve the problems
relating to trade in cotton textiles between Yugoslavia and the Community
and must not be considered as suitable for application in other fields ,
HAVE . DECIDED , in a spirit of mutual cooperation , to conclude this Agreement
and to this end have designated as Plenipotentiaries :
THE COUNCIL 01? TIIE EUROPEAN C0:3!UNITIES :
THE GOVERN? 1ENT OF THE SOCIALIST FEDERAL REPUBLIC OF YUGOSLAVIA :
WHO HAVE AGREED UPON THE FOLLOWING PROVISIONS :
 ---pagebreak---                                  Article 1
1.    The provisions of this Agreement shall apply to the cotton textiles
originating in and dispatched from Yugoslavia and listed in Annex I.
 ---pagebreak---                                  Article 2
      Yugoslavia undertakes to apply the necessary measures to ensure that
its exports of cotton textiles to the Community do not exceed the ceilings
fixed in Article 3 *
      The Community undertakes , insofar as these exports do not exceed the
quantitative ceilings fixed in Article 3 , not to introduce new quantitative
restrictions on imports of cotton textiles originating in and dispatched
from Yugoslavia and to suspend the application of existing restrictions ,   .
 ---pagebreak---                                      Article 3
1.     The global ceiling which is the subject of this Agreement shall be
17,280 metric tons per year , outward processing traffic being excluded from
this total quantity .
                                    ■
2.     This total quantity per year shall be apportioned as follows between
two groups of categories of products :
                                                                 Metric tons
    Group I    ( Cotton fabrics , unbleached   or bleached ,
                 whether or not mercerised )
               - intended for internal consumption                 10,406
               - intended for reexport                              3,794
                                            total                  14,200
    Group II ( Other cotton fabrics , made-up articles
                 and miscellaneous articles of cotton )             3,080
3.     In order to prevent excessive concentration of trade on certain pro­
ducts , the Contracting Parties may agree on specific ceilings by sub-catego­
ries within the ceilings set out in paragraph 2 .
       If , in the course of one of the twelve-nonth periods , the Community
notes a rapid and substantial growth in imports of certain sub-categories
of products which are not covered by specific ceilings , it may request that
a specific ceiling be fixed . Where such a request is made , consultations
shall be held forthwith between the two parties to agree upon the level of
a specific ceiling for the product in question .
 ---pagebreak---                                                     I
                                  Article 4
1.     Yougoslavia may transfer up to 10% of the quantities fixed for Group II
to Group I.
       Unused portions of tho specific ceilings may "be transferred to another
specific ceiling provided the quantity thus transferred does not exceed 10%
of the specific ceiling to which the transfer is made , or to other sub­
categories within the same category not subject to specific ceilings ,
2.     Portions of one of the ceilings for the two groups of categories not
used during any twelve-month period may be carried over and added to the
ceiling for the same group in the following twelve-month period up to a
maximun of 10$ of the ceiling in question , provided no such transfer has
been effected or carryover been made to another head .
3.     Within a limit of 10$ of each of the ceilings agreed upon , advance
deliveries shall be authorized by the Community from the ceiling established
for the following twelve -month period , if the Yugoslav Government so requests
in good time . The Yugoslav Government shall , hotirever , endeavour to ensure
that exports of cotton textiles of all categories are spaced out as regu­
larly as possible over each of the twelve-month periods , due account being
taken , in particular , of seasonal factors . Aaounts delivered in advance shall
be deducted from the ceilings for the following twelve-month period .
 ---pagebreak---                                   Article 5
       The two parties agree that the ceilings shown in the Agreement shall
"be managed, under a system of double checking .
 ---pagebreak---                                  Article 6
      The Contracting Parties shall communicate to one another all useful
information on the trade between the Community and Yugoslavia in textile
products . For this purpose thoy shall apply their own classification and
shall cooperate in order to facilitate comparison of the information
supplied .
 ---pagebreak---                                 Article 7
      The Contracting Parties shall cooperate in taking the appropriate
measures to ensure that the provisions of this Agreement are not avoided
through the use of practices involving reexportation or re-routing.
      When the Community has reason to suspect thet imports from Yougoslavia
did not originate in that country , it may call for consultations with Yugo­
slavia to facilitate the determination of the origin of the products in
question .
 ---pagebreak---                                   Art ici e 8
1.    If imports into the Community of certain textiles of fibres in direct
competition with cotton cause or threaten to cause a disturbance of the
market , and in particular .when these imports increase in such a way that
the provisions of this Agreement could be evaded , the Community may ask
Yugoslavia for consultations in order to agree on measures to be taken to
remedy this situation . The request for consultations shall be accompanied
by a detailed and substantiated statement of the reasons and the justifi­
cation for its presentation .
2.    If these consultations do not result in an agreement within the
                                                        ι
period of 60 days following the request , the Community shall be entitled
to take protective measures as provided for in Article III paragraph 2
of the Trade Agreement between the Community and Yugoslavia .
 ---pagebreak---                                 Article 9
      Should one of the Parties inform the other that the application of
the Agreement has given rise to difficulties which jeopardise the mainte­
nance of existing commercial relations "between importers and exporters ,
the two parties shall take all the necessary measures to ensure that these
commercial relations are maintained .
 ---pagebreak---                                  Article 10
      The two parties undertake to consult each other , at the request of
either , on all problems arising from the implementation of the Agreement .
 ---pagebreak---                                  Article 11
1.    This Agreement shall be concluded for a period of one year from
1 January 1973 *
      It shall enter into force on the first day of the month following
the date of its signing . Its term of validity shall be extended for one
year if neither of the parties has denounced it one month before its
expiry .
2.    Each party reserves the right to adapt the provisions in the light
of the results of future multilateral trade negotiations .
3.    The Annexes to this Agreement shall form an integral part thereof .
 ---pagebreak---                                    Article 12
      This Agreement shall be drawn up in two copies in the German , English ,
Danish , French , Italian , Dutch and Serbo-Croat languages , each of these
texts being equally authentic .
 ---pagebreak---                                                          ANNEX I
                 LIST OP COTTON TEXTILE PRODUCTS
           REFERRED TO EST ARTICLE I OP THE AGREEMENT
 "Cotton textiles " shall "be considered to cover the products , listed
"below , in which cotton represents more than 5^° ("by weight ) of the
fibre content , with the exception of fabrics manufactured by crafts­
men on hand looms .
 ---pagebreak---  Group          Sub-
          Cate­
of cate­        cat e– •              Description of products
         gories
 gories         gories
GROUP I                      COTTON FABRICS , UKBLEACHED OR BLEACHED ,
                             MERCERIZED OR FOT
            B              • COTTON FABRICS , UKBLEACHED
                B 1          Terry towelling and similar terry fabrics
                B 2          Woven fabrics other than gauze or teriy towelling
                             and similar terry fabrics , containing less than
                                  by weight of cotton
                B 3          Woven fabrics other than gauze or terry
                             towelling and similar terry fabrics , containing
                             at least 85c/o by weight of cotton , plain weave ,
                             weighing more than ^0 but not more than 130 g
                             per square metre , of a width of more than 115
                             cm but not more than I65 ca , only with a yarn
                             numbered less than 55 » 000 m/kg ( English number
                             32 )
                B 4          Woven fabrics other than gauze or terry towelling
                             and similar terry fabrics , containing at least
                             85i" by weight of cotton , plain weave , weighing
                             not more that 130 g per square metre , other than
                             those under B 3
                B 5          woven fabrics other than gauze or terry towelling
                             and similar terry fabrics , containing at least
                             83% by weight of cotton , plain weave , weighing
                             more than 130 but not more than 200 g per square
                             metre , of a width of at least 85 cm but not more
                             than 115 cn
                B 6          VJoven fabrics other than gauze or terry towelling
                             and similar teriy fabrics , containing at least
                             85$ by weight of cotton , plain weave , weighing
                             per square metre more than 130 g but not more
                             than 200 g of a width of more than 115 cm
                                                                           ./•
                         I
 ---pagebreak---  °r0U?      Cate- SvÛ0~
of cate -     .   cate -           Description of products
          gories      .                   *        *
 gories   ■       gones  .
GROUP I            B 7     Woven fabrics other than gauze or terry towelling
                           and similar terry fabrics , containing at least
                           8   by weight of cotton , of a width of at least
                           85 cm , other than plain weave
                   B 8     Other woven fabrics
                           COTTOH FABRICS OTHER THAN UNBLEACHED
                    C 1    Bleached , mercerized or not
GROUP II                   OTHER COTTOH FABRICS . M/J3E-UP ARTICLES /JTD
                           MISCELLANEOUS ARTICLES OF COTTON
                    C 2    Gauze other than unbleached or bleached
                    C 3    Terry toxtfelling and similar terry fabrics , othor
                           than unbleached or bleached
                    C 4    Woven pile fabrics and chenille fabrics ( other
                           than terry towelling or similar terry fabrics of
                           cotton falling within Heading No . 55*08 an&
                           fabrics falling within Heading No . 5S»05 )
                    C 5    Woven fabrics other than gauze or terry
                           towelling and similar terry fabrics , dyed
                   C 6     Woven fabrics other than gauze or terry
                           towelling and similar terry fabrics , printed
                    C 7    Woven febrics other than gauze or terry
                           towelling and similar terry fabrics , made with
                           yarns of various colours
                                                                        /.
 ---pagebreak---  Group              Sub-
         Cate­
of cate­            cate-           Description of products
         gories
 gories             gories
           D                  HOUSEHOLD MADE-UP ARTICLES OF C0TT01T
                    D 1       Bed linen
                    D 2       Table linen
                    D 3       Terry toilet linen and terry kitchen linen
                    D 4       Other household articles
           E    ■         . . COTTON CLOTHING
                  . E_1       Gloves , mittens and mitts , knitted or
                              crocheted , not elastic or rubberized
                    E 2       Undergarments , knitted or crocheted , not elastic
                              or rubberized
                    E 3       Outer garments and other articles , knitted or
                              crocheted , not elastic or rubberized . Articles
                              other than knitted or crocheted fabrics and
                              articles thereof , elastic or rubberized
                    E 4       Woven trousers and breeches , for men and boys
                    E 5       Other woven outer garments for men and boys
                    E 6       Woven outer garments for women , girls and infants
                    E 7       Shirts and bodices for men and boys
                    E 8       Other woven undergarments for men and boys
 ---pagebreak---  Group          Sub-
         Cate­
of cate­        cate-        Description of products
         gories
gories          gories
GROUP II         E 9   Woven undergarraents for women , girls and
                       infant s
                 E 10  Hanakerchiefs
                 E 11  Other articles of apparel and clothing
                       accessories
                       MISCELLANEOUS C0TT0N FA3RICS AHD ÌÌADE-UP
                       ARTICLES
                 F 1   Travelling rugs and olankets
                 P 2   Floor cloths , dish-cloths , dusters ,
                       and the like
                 F 3   Pneumatic Eattresses
                 F 4   Other
 ---pagebreak---                                 ANNEX
Letter No . 1 Double checking
Letter No . 2 Re-exports
Letter No . 3 Transit and free trade
Letter No . 4 105$ Clause
Letter No . 5 Substitute products
Letter No . 6 Territory of application
Letter No . ^ Consultations
Letter No . 8 Development of trade
 ---pagebreak---                                                          LHTTER No . 1
                                                         Brussels .
Madame ,
         At the conclusion of the negotiations between the Yugoslav Govern­
ment and the Community which led this day to the signature of the Agreement
on cotton textiles , the two parties agreed, on the following :
         The administration of cotton textiles imports from Yugoslavia will
be based on a system of double checking.
         The authorities of the Member States of the Community will , auto­
matically and without delay , accept imports of cotton textile products on
submission of the importer 's application together with the original export
licence.  These export licences will be issued by the Yugoslav authorities
up to the total amount of the agreed ceilings .
         The export licence issued by the Yugoslav authorities shall be ap­
plicable to the products referred to in Article 1 of the Agreement .
 ---pagebreak---          The export licence must specify :
1.  destination
2.  sériai number
3.  importer 's name and address
4.  exporter 's name and address
5.  net weight ( in kilograms or metric tons ) and value
6.  category and description of product
7.  certificate issued by the Yugoslav authorities showing that the
    quantity has been debited against the agreed ceiling for exports
    to the Community .
         The authorities of the Member States of the Community will not
raise difficulties in the event of a discrepancy between the weight indicated
in the export licenoe and the shipment or import weight provided it is with­
in reasonable limits , while the Yugoslav authorities , for their part , will
endeavor to keep any discrepancies to a minimum .
         In the event of total or partial withdraxfal of an export licence ,
the Yugoslav authorities will notify the authorities of the Member States
of the Community of such total or partial withdrawal .   The authorities of
the Member States of the Community will take the appropriate measures in
accordance with the existing administrative provisions .
         The Yugoslav authorities will forward to the authorities of the
Member States of the Community , via the Embassies of the Member States of
the Community and directly to the Commission , quarterly returns showing the
total net weight in metric tons covered by the export licences issued against
the ceilings for exports to the Member States of the Community for each
 ---pagebreak--- category specified in the Agreement .   T'he categories falling within
Group I will be taken as a whole .
         We should be grateful if you would be good enough to confirm
that your Government is in agreement with the foregoing.
         I avail myself , Madame , of this opportunity to renew the as­
surance of my highest considerations .   '
 ---pagebreak---                                                           LETTER No . 1
                                                          Brussels ,
Sir «
      I have the honour to acknowledge receipt of your letter dated this ,
 day reading as follows :
      "At the conclusion of the negotiations between the Yugoslav Government
  and the Community which led this day to the signature of the Agreement on
  cotton textiles , the two parties agreed on the following :
      The administration of cotton textiles imports from Yugoslavia will he
 "based on a system of double checking .
      The authorities of the Member States of the Community will , automatical­
  ly and without delay , accept imports of cotton textile products on submis­
  sion of the importer 's application , together with the original export li­
  cence . These export licences will be issued bjr the Yugoslav authorities up'
  to the total amount of the agreed ceilings .
      The export licence issued by the Yugoslav authorities shall be applicable
  to the products referred to in Article 1 of the Agreement ."       ;
 ---pagebreak---      The export licence must specify :
1.  destination
2.   sériai nuinber
3.   importer * s nanie and address
4.   exporter' s name and rd.dress
5 . net weight ( in kilograms or metric tons ) and value
6.   category and description of product
7.   certificate issued "by the Yugoslav authorities showing that the
    quantity has "been debited against the agreed ceiling for exports
     to the Community .
    The authorities of the Member States of the Community will not raise
difficulties in the event of a discrepancy between the weight indicated in
the export licence and the shipment or import weight provided it is within
reasonable limits , while the Yugoslav authorities , for their part , will en­
deavour to keep any discrepancies to a minimum .
     In the event of total or partial withdrawal of an export licence , the
Yugoslav authorities will notify the authorities of the Member States of
the Community of such total or partial withdrai»r al .  The authorities of the
Member States of the Community will take the appropriate measures in accor­
dance with the existing administrative provisions .
    The Yugoslav authorities will forward to the authorities of the Member
States of the Community , via the Embassies of the Member States of the Com­
munity and directly to the Commission , quarterly returns showing the total
net weight in metric tons covered by the export licences issued against the
ceilings for exports, to the Member States of the Community for each category
specified in the Agreement ,     The categories falling within Group I will be
taken as a whole .
 ---pagebreak---     Vie should be grateful if you would "be good enough to confirm that
your Government is in agreement with the foregoing."
    On behalf of the Yugoslav Government I have the honour to confirm
the above-mentioned understandings .
    I avail myself , Sir , of this opportunity to renew the assurance of
my highest consideration .
 ---pagebreak---                                                         LETTER Eo . 2
                                                        Brussels ,
Madame ,
    At the conclusion of the negotiations "between the Yugoslav Government
and the Community which led this day to the signature of the Agreement on
cotton textiles , the two parties agreed on the follovdng :
    All Yugoslav exports to the Community referred to in Article 2 of the
Agreement shall be counted against the agreed ceilings .
    In the event of additional demand developing for re-exportation to
third countries after processing in the Community , the authorities in the
Member States may grant special import licences leading to the issue of
permits to export without deduction from the agreed ceilings .
    The Commission will inform the Yugoslav Government each quart er of any
such development .
    We should be grateful if you would be good enough to confirm that your
Government is in agreement with the foregoing .
    I avail myself , Madame , of this opportunity to renew the assurance of
my highest consideration .
 ---pagebreak---                                                           LETTER Ho . 2
                                                          Brussels ,
Sir ,
      I have the honour to acknowledge receipt of your letter dated this
day , reading as follows :
      "At the conclusion of the negotiations between the Yugoslav Govern­
ment and the Community which led this day to the signature of the Agree­
ment on cotton textiles , the two parties agreed on the following :
      All Yugoslav exports to the Community referred to in Article 2 of the
Agreement shall be counted against the agreed ceilings .
      In the event of additional demand developing for re-exportation to
third countries after processing in the Community , the authorities in the
Member States may grant special import licences leading to the issue of
permits to export without deduction from the agreed ceilings .
      The Commission vrill inform the Yugoslav Government each quarter of any
such development .
      Wo should be grateful if you would be good enough to confirm that your
Government is in agreement with the foregoing ."
      On behalf of the Government of Yugoslavia I have the honour to confirm
the above-mentioned understandings .
      I avail myself , Sir , of the opportunity to renew the assurance of
my highest consideration .
 ---pagebreak---                                                          LETTER No . 3
                                                         Brussels ,
Madame ,
                                                           ν
    At the conclusion of the negotiations between the Yugoslav Government
and the Community which led this day to the signature of the Agreement on
cotton textiles , the two parties agreed to the following :
    The present Agreement shall in no way hinder merchants in Community
countries from freely engaging, as they have done in the past , in trade
with third countries .
    This principle shall apply "both to operations carried out under transit
arrangements and to operations involving goods that do not enter the Commu­
nity 's customs territory .
    Vie should be grateful if you would be good enough to confirm that your
Government is in agreement with the foregoing.
     I avail myself , Madame , of this opportunity to renew the assurance of
my highest consideration .
 ---pagebreak---                                                              LETTER ITo . 3
                                                             Brussels ,
Sir ,
      I have the honour to acknowledge receipt of your letter dated this
day , reading as follows :
      "At the conclusion of the negotiations "between the Yugoslav Govern­
ment and the Community which led this day to the signature of the Agree­
ment on cotton textiles , the two parties agreed on the following :
      The present Agreement shall in no way hinder merchants in Community
countries from freely engaging, as they have done in the past , in trade
with third countries .
      This principle shall apply "both to operations carried out under transit
arrangements and to operations involving goods that to not enter the Com-
nunity 's customs territory .
      lie should "be grateful . if you would "be good enough to confirm that your
Government is in agreement with the foregoing ."
      On behalf of the Yugoslav. Government I have , the honour to confirm the
above-mentioned understandings .         V,                       ,
      I avail myself , Sir , of this opportunity to renew the assurance of ray
highest consideration .
 ---pagebreak---                                                            LETTER No . 4
                                                          Brussels ,
Madame .
    At the conclusion of the negotiations "between the Yugoslav Government
and the Community which led this day to the signature of the Agreement on
cotton textiles , the two parties agreed on the following :
1.  Ho provision of the Agreement is to bo interpreted as affecting the
present state of liberalization of cotton textile products which exists
in the relations between the Member States of the Community and Yugoslavia.
2.  It is understood that the Community will not aslc for the fixing of a
specific ceiling pursuant to Article 3 of the Agreement unless the rigid
and substantial growth in imports of the products referred to is causing
or is threatening to cause a disturbance of the market .
    While waiting for the results of the consultations provided for in
this Article , the Yugoslav Government will maintain , from the date of the
request , its exports of the products in question at a level corresponding ,
prorata temporis , to 105$ of the exports for the most recent period of
twelve months for which statistical data is available .
    We should be grateful if you would be good enough to confirm that
your Government is in agreement with the foregoing .
    I avail n$r self , Madame , of this opportunity to renew the assurance
of my highest consideration .
 ---pagebreak---                                                           LETTEH No . 4
                                                          Brussels ,
Sir ,
      I have the honour to acknowledge receipt of your letter dated this
day reading as follottfs ;
      "At the conclusion of the negotiations "between the Yugoslav Government •
and the Community which led this day to the signature of the Agreement on
cotton textiles , the two parties agreed on the following :
1 . No provision of the Agreement is to be interpreted as affecting the
present state of liberalization of cotton textile products which, exists
in the relations between the Member States of the Community and Yugoslavia *
2 . It is understood that the Community will not ask for the fixing of a
specific ceiling pursuant to Article 3 of the Agreement unless the rapid
and substantial growth in imports of the products referred to is causing
or is threatening to cause a disturbance of the market .
      While waiting for the results of the consultations provided for in this
Article , the Yugoslav Government will maintain , from the date of the request ,
          )
its exports of the products in . question at a level corresponding, prorata
temporis , to 105% of "the exports for the most recent period of twelve months
for which statistical data is available .
      Vie should be grateful if you would be good enough to confirm that your
Government is in agreement with the foregoing."
      On behalf of the Yugoslav Government I have the honour to confirm the
above-mentioned understandings .
      I avail myself , Sir , of this opportunity to renew the assurance of my
highest consideration .
 ---pagebreak---                                                         LETTER No . 5
                                                        Brussels ,
Madame . ■
    At the conclusion of the negotiations betx\Teen the Yugoslav Government
and the Community which led this day to the signatvire of the Agreement on
cotton textiles , the two parties agreed on the following :
    The provisions of Article 8 of the Agreement shall apply in respect
of the products set out in the list annexed hereto .
    We should "be grateful if you would be good enough to confirm that your
Government is in agreement with the foregoing.
    I avail myself , Madame , of this opportunity to renew the assurance of
my highest consideration .
 ---pagebreak---                                                               A17ÎTEX
                                                              to letter Ho . 5
54.05         Woven fabrics of flax or of ramie
56.05         Yarn of man-made fibres (discontinuous or waste ) not put up for
              retail sale :
          Β   Or régénérât éd textile fibres
56.07         Woven fabrics of man-made fibres (discontinuous or waste ) :
          Β   Of regenerated textile fibres
58.04         Woven pile fabrics and chenille fabrics ( other than terry towel­
              ling or similar terry fabrics of cotton falling within heading
              No« 55.08 and fabrics falling within heading No . 53*05 ) :
              Of svnthetic textile fibres
        ex B  Of other textile materials
58 . IO       Eabroidery , in piece , in strips or in motifs :                   '
          A   Embroidery without visible ground ;
        ex II Other
          B   Other
        ex II Other
60.01         Knitted or crocheted fabric , not elastic nor rubberized :
          B   Of man-made fibres
        ex C  Of other textile materials
60.06         Knitted or crocheted fabric and articles thereof , ' elastic or
              rubberized ( including elastic knee-caps and elastic stockings ) :
        ex A  Fabric
ex 61.01      Men 's and boys' outer garments
 61.02        Women 's , girls' and infants' outer garments :
        ex B  Other
ex 61.03      Hen 's and boys' under garments , including collars , shirt fronts
              and cuffs
61,05         Handkerchiefs :
        ex B  Other
 ---pagebreak--- 62.02       Bed linen , table linen , toilet linen and. kitchen linens
            curtains and other furnishing articles :
      ex B  Other
62.03       Sacks and bags , of a kind used for the packing of goods :
        B   Of other textile materials
          I Used
      ex B  Other
      ex II Other
62.04       Tarpaulins , sails , awnings , sunblinds , tents and camping goods :
        B   Of other textile materials
63.01       Clothing, clothing accessories , travelling rugs and blankets ,
            household linen and furnishing articles ( other than articles
            falling within heading No . 58 . 01 , 58*02 or 58*03 ) » of textile
            materials , footwear and headgear of any material , showing signs
            of appreciable wear and imported in bulk or in bales , sacks or
            similar bulk packings :
      ex A  Used clothing
 ---pagebreak---                                                           LETTER ITo . 5
                                                          Brussels ,
Sir ,
       I have the honour to acknowledge reoeipt of your letter dated this
day reading as follows :
       "At the conclusion of the negotiations between the Yugoslav Govern­
ment and the Community which led this day to the signature of the Agreement
on cotton textiles , the two parties agreed on the following :
       The provisions of Article 8 of the Agreement shall apply in respect
of the products set out in the list annexed hereto .
       We should "be grateful if you would "be good enough to confirm that
your Government is in agreement with the foregoing."
       On "behalf of the Yugoslav Government I have the honour to confirm
the above-mentioned understandings .
        I avail myself, Sir , of this opportunity to renew the assurance of
my highest consideration .
 ---pagebreak---                                                            LETTER No . 6
                                                           Brussels .
Madame ,
         At the conclusion of the negotiations between the Government of Yu­
goslavia and the Community which led this day to the signature of the Agree­
ment on cotton textiles , the two parties agreed on the following :
         As far as the Kingdom of the Netherlands is concerned, the Agreement
shall apply solely to the Kingdom 's territory in Europe .
         We should be grateful if you would be good enough to confirm that
your Government is in agreement with the foregoing .
         I avail myself, Madame , of this opportunity to renew the assurance
of my highest consideration .                               • ,
 ---pagebreak---                                                            LETTER No . 6
                                                           Brussels ,
Sir .
       I have the honour to acknowledge receipt of your letter dated today ,
reading as follows :
       "At the conclusion of the negotiations "between the Government of Yu­
goslavia and the European Economic Community which led this day to the sig­
nature of the Agreement on cotton textiles , the two parties agreed on the
following :
       As far as the Kingdom of the Netherlands is concerned , the Agreement
shall apply solely to the Kingdom 's territory in Europe .
       We should he grateful if you would "be good enough to confirm that
your Government is in agreement with the foregoing ."
       On behalf of the Government of Yugoslavia I have the honour to confirm
the above–mentioned understanding .
       I avail myself , Sir , of this opportunity to renew the assurance of my
highest consideration .
 ---pagebreak---                                                            LETTER Ho . 7
                                                           Brussels .
Sir ,
        At the conclusion of the negotiations between the Yugoslav Govern­
ment and. the Community which led this day to the signature, of the Agreement
on cotton textiles , the two parties agreed on the following ;
        Given the safeguard clauses for which provision is made in the Agree­
ment , the two parties state their intention of avoiding any measures which
may have the effect of rendering the Agreement inoperative .    . .r ,        ;
        If either of the parties finds that its interests are seriously af­
fected by such measures adopted by the other , that party, may request the
opening of consultations in order to find mutually acceptable solutions . ,
        We should bo grateful if you would be good enough to confirm that
your Government is in agreement with the foregoing.                  ■■
        I avail myself , Sir , of this opportunity to renew the assurances of
my highest consideration .                    - .
 ---pagebreak---                                                             LETTER No . 7
                                                            Brussels ,
Madame ,
         I have the honour to acknowledge receipt of your letter dated this
day reading as follows :
         "At the conclusion of the negotiations between the Yugoslav Govern­
ment and the Community which led this day to the signature of the Agreement
on cotton textiles , the two parties agreed on the following :
      . Given the safeguard clauses for which provision is made in the Agree­
ment , the two parties state their intention of avoiding any measures which
may have the effect of rendering the Agreement inoperative .
         If either of the parties finds that its interests are seriously af­
fected "by such measures adopted by the other , that party may request the
opening of consultations in order to find mutually acceptable solutions .
         Vie should be grateful if you would be good enough to confirm that
your Government is in agreement with the foregoing."
         On behalf of the Community I have the honour to confirm the above-
mentioned understandings .
         I avail myself , Madame , of this opportunity to renew the assurance
of my highest consideration .
 ---pagebreak---                                                          LETTER Ho . 8
                                                         Brussels .
                      '                                              •       • v
Sir .                                                                  " ' 1
       At the conclusion of the negotiations "between the Yugoslav Government
and the Community which led this day to the signature of the Agreement on
cotton textiles , I have the honour of drawing your attention to the develop­
ment of trade in textiles "betifeen the Community and Yugoslavia .
       In the light of the economic development of Yugoslavia and thfe efforts
of this country to open up its internal market , the trade in textile products
between the Community and Yugoslavia shows an increasingly dynamic and di­
versified development . In the field of textiles the 'Community taJces 34$ of
Yugoslavia's world-wide exports and provides 40$ of its imports ..
       Industrial cooperation in the field of textiles represents an impor­
tant factor in the structural changes in trade and in the further develop­
ment of the industries concerned .
 ---pagebreak---        The statistical table annexed hereto shows the position with respect
to these patterns of trade and to industrial cooperation in the field of
textiles .
       The Yugoslav Government expresses the hope that the Agreement on cot­
ton textiles will contribute to the further development of trade between
the Community and Yugoslavia in general and in the field of textiles in
particular .
       We should be grateful if you would be good enough to acknowledge re­
ceipt of this letter and the Annex thereto .
       I avail myself , Sir , of the opportunity to renew the assurances of my
highest consideration .
 ---pagebreak---                                                            LETTER No . 8
                                                           Brussels .
Madame .
         I have the honour to acknowledge receipt of your letter dated this
day reading as follows :
         "At the conclusion of the negotiations 'between the Yugoslav Govern­
ment and the Community which led this day to the signature of the Agreement
on cotton textiles , I have the honour of drawing your attention to the de­
velopment of trade in textiles between the Community and Yugoslavia.
         In the light of the economic development of Yugoslavia and, the ef­
forts of this country to open up its internal market , the trade in textile
products between the Community and Yugoslavia shows an increasingly dynamic
and diversified development .   In the field of textiles the Community takes
34i° of Yugoslavia's world-wide exports and provides 40$ of its imports .
         Industrial cooperation in the field of textiles represents an im­
portant factor in the structural changes in trade and in the further de­
velopment of the industries concerned .
 ---pagebreak---        The statistical table annexed hereto shows the position with re­
spect to these patterns of trade and to industrial cooperation in the
field of textiles .
       The Yugoslav Government expresses the hope that the Agreement on
cotton textiles will contribute to the further development of trade bet­
ween the Community and Yugoslavia in general and in the field of textiles
in particular .
       We should be grateful if you would be good enough to acknowledge
receipt of this letter and the Annex thereto ."
       I avail myself , Madame , of this opportunity to renew the assurance
of my highest consideration .
 ---pagebreak---                                              TUE  s -i - ii- uo - rurti!: o !■' i        AND expoots   OF
                                                   TEXTILE PRODUCTS                   IN YUGOSLAVIA
                                                                           -1971-
                                                                                                          in millions :-- of Dollar
                                     Total     EEC                              Umted                      EEC
SITC groups                                             V-                                        Denmark                    /
                                                6                                                          1SQVV
                                     SFRY                                       Xmgdom
IîîPOHT'S
Group 26 Textile fibres and waste    113.2     17.7                             2,2                        19-9              16,8
        65 Yarn , woven fabrics ,
           raade-up textile articles 139-1     80.0                             2.4                        82,4              59.2
        841 Clothing                   17.5     7.2                             0.1                          7.3             41.7
                        Total :      274.8     104.9                            4.7                        109.6
                                                                                              •  <
                                                                                                «
                                     100 % ■     38.2 %                                                      39.9 %
EXPORTS
                                        9.5      2.1                                                         2.1             22.1
Group 26 Textile fibres and waste
        65 Yarn , woven fabrics ,
           maàe-up textile articles    79-0    30.4                             0.8                1.2     32.4               41.0
       84I Clothing                    93.6    24.9                             2.0                0.4      27.3              29,1
                        Total ï       182.1     57.4                             2.8               1.6      61.8
                                      100 %     31.5 %                                                      33.9 %
 Source : 0ECD
 Processing traffic
 TVPORTS                               73.2     55.5                                                        55.5               75-8
                                       89.4     76.9                                                        76.9               00 . 0
 EXPORTS
Source :    Yugoslav statistics
 Overall total
  IMPORTS                             348.0     I6O.4                             4.7                       165.1              47.4
  EXPORTS                             271.5     134.3                             2.8              1.6      138.7              52,0