CELEX: 51992PC0203(01)
Language: en
Date: 1992-05-15
Title: 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

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)
 ---pagebreak---                        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. In view of the above considerations the Commission requests the
   Council to adopt the proposals mentioned under (I).
5. 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.
 ---pagebreak--- 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.
 ---pagebreak---                                                                                        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
                                                                               (EEC) N°                    /92
                                                                                 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 e d  llri.- 2 )     .-xch.wje- 2 JS . 1 1 . 1 1 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 i t »r-;l./WA/c<j-in.d»-r(l )m)
 ---pagebreak---                                   - 2 -
HAS ADOPTED THIS DECISION :
                                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.
                                Article 2
The President of the Council is hereby authorized to designate the
person empowered to sign the Agreements in order to bind the Community.
Done at Brussels,         1992
                                        For the Council
                                        The President
 ---pagebreak---                          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                   10.000
       taxable                   14.000 with a tax rate of    1 Forint per
                                 ton/km.
                                 1.200 with a tax rate of    3  Forint per
                                 ton/km.
       third country (1)(2)      600
 ---pagebreak---      (1)    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)
     (2)    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
 ---pagebreak---                         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                  10.000
       taxable                  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.
       third country (1)(2)     600
                                                                           1
 ---pagebreak---      (1)   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)
     (2)   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,
 ---pagebreak---                        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    the   Community   and   Hungary   concerning    land   transport
infrastructure was signed. The Interim Agreement came into force on
1st March 1992.
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   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.
 ---pagebreak---                                                                          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.
 ---pagebreak---                        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    the   Community   and   Hungary   concerning    land   transport
infrastructure was signed. The Interim Agreement came into force on
1st March 1992.
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   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.
                                                                             X1--'
 ---pagebreak---                                                                               &
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
 ---pagebreak---                         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\
 ---pagebreak--- 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
 ---pagebreak---                                                                              71
                         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. "
                                                                           X'y
 ---pagebreak---                                                                           u
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,
                                                                         /c
 ---pagebreak---                                                                                   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
                                                                            (EEC) N°                    /92
                                                                              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 c t l i n e 21     e«change 2 15.11.11 • T e l e x COMEU B 21877 - T e l e g r a p h i c . l d d i e s a i-jMtUK & i ,
/Au4/Inrle2b/wA/coun.dec(1)m)                                                                                                                                    ^f
 ---pagebreak---                                   - 2
HAS ADOPTED THIS DECISION :
                                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.
                                Article 2
The President of the Council is hereby authorized to designate the
person empowered to sign the Agreements in order to bind the Community.
Done at Brussels,          1992
                                        For the Council
                                        The President
 ---pagebreak---                         A g r e e m e n t in t h e f o r m of a n
                     Exchanrje o f l«»tterr, a m e n d incj t h e
                     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 Un- O immunity,
 ---pagebreak---                          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.
 ---pagebreak--- 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'
 ---pagebreak---                         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    for   financial assistance    to    enable   CSFR  land   transport
  infrastructure to cope with the increased transit traffic in the CSFR.
  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.
 ---pagebreak--- 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
 ---pagebreak---                         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
 need    for   financial assistance    to    enable   i\SFK land   transport
 infrastructure to cope with the increased transit traffic in the CSFR.
 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,
 ---pagebreak--- 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,
                                                                           ?•>"
 ---pagebreak---                         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    for   financial assistance    to   enable   CSFR  land    transport
 infrastructure to cope with the increased transit traffic in the CSFR.
 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.
 ---pagebreak--- 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
 ---pagebreak---                         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
 need    for   financial assistance    to   enable   CSFR  land    transport
  infrastructure to cope with the increased transit traffic in the CSFR.
 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.
 ---pagebreak--- 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
 ---pagebreak---                                                                      ISSN 0254-1475
                                                              COM(92) 203 final
                                                      DOCUMENTS
EN                                                                               li
                                 Catalogue number: CB-CO-92-217-EN-C
                                                             ISBN 92-77-44258-1
Office for Official Publications of the European Communities
L-2985 Luxembourg