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AGREEMENT

IN THE FORM OF AN EXCHANGE OF LETTERS DEROGATING FROM ARTICLE 1 OF PROTOCOL 3 TO THE AGREEMENT BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE REPUBLIC OF ICELAND

BRUSSELS , ...

SIR ,

ARTICLE 1 OF PROTOCOL 3 TO THE AGREEMENT BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE REPUBLIC OF ICELAND , SIGNED ON 22 JULY 1972 , STIPULATES THAT THE OIL PRODUCTS LISTED IN LIST C ANNEXED TO THE PROTOCOL DO NOT FALL WITHIN THE SCOPE THEREOF .

IN ORDER TO PREVENT THIS LEGAL SITUATION CAUSING , IN THE APPLICATION OF THE NO-DRAWBACK RULE IN ARTICLE 23 OF PROTOCOL 3 , DISTORTION OF TRADE PREJUDICIAL TO THE INTERESTS OF THE CONTRACTING PARTIES , I PROPOSE THAT IT BE AGREED THAT , BY DEROGATION FROM ARTICLE 1 OF PROTOCOL 3 , ARTICLE 23 OF PROTOCOL SHALL APPLY TO THE PRODUCTS LISTED IN LIST C ANNEXED THERETO , WHETHER SUCH PRODUCTS ARE USED IN THE MANUFACTURE OF OTHER ORIGINATING PRODUCTS OR ARE ELIGIBLE IN THEMSELVES TO BENEFIT AS FINISHED PRODUCTS FROM THE PROVISIONS OF THE AGREEMENT .

I SHOULD BE GRATEFUL IF YOU WOULD CONFIRM THE AGREEMENT OF YOUR GOVERNMENT TO THIS PROPOSAL .

PLEASE ACCEPT , SIR , THE ASSURANCE OF MY HIGHEST CONSIDERATION .

FOR THE COUNCIL OF THE EUROPEAN COMMUNITIES

BRUSSELS , ...

SIR ,

I HAVE THE HONOUR TO ACKNOWLEDGE RECEIPT OF YOUR LETTER OF TODAY READING AS FOLLOWS :

" ARTICLE 1 OF PROTOCOL 3 TO THE AGREEMENT BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND THE REPUBLIC OF ICELAND , SIGNED ON 22 JULY 1972 , STIPULATES THAT THE OIL PRODUCTS LISTED IN LIST C ANNEXED TO THE PROTOCOL DO NOT FALL WITHIN THE SCOPE THEREOF .

IN ORDER TO PREVENT THIS LEGAL SITUATION CAUSING , IN THE APPLICATION OF THE NO-DRAWBACK RULE IN ARTICLE 23 OF PROTOCOL 3 , DISTORTION OF TRADE PREJUDICIAL TO THE INTERESTS OF THE CONTRACTING PARTIES , I PROPOSE THAT IT BE AGREED THAT , BY DEROGATION FROM ARTICLE 1 OF PROTOCOL 3 , ARTICLE 23 OF THE PROTOCOL SHALL APPLY TO THE PRODUCTS LISTED IN LIST C ANNEXED THERETO , WHETHER SUCH PRODUCTS ARE USED IN THE MANUFACTURE OF OTHER ORIGINATING PRODUCTS OR ARE ELIGIBLE IN THEMSELVES TO BENEFIT AS FINISHED PRODUCTS FROM THE PROVISIONS OF THE AGREEMENT .

I SHOULD BE GRATEFUL IF YOU WOULD CONFIRM THE AGREEMENT OF YOUR GOVERNMENT TO THIS PROPOSAL " .

I HAVE THE HONOUR TO CONFIRM THAT MY GOVERNMENT AGREES TO THE CONTENTS OF YOUR LETTER .

PLEASE ACCEPT , SIR , THE ASSURANCE OF MY HIGHEST CONSIDERATION .

FOR THE GOVERNMENT OF THE REPUBLIC OF ICELAND