*****

EXCHANGE OF LETTERS

complementing the Agreement between the European Economic Community and New Zealand on trade in mutton, lamb and goatmeat and comprising an understanding relevant to the first indent of clause 2 of that Agreement

Letter No 1

Sir,

I have the honour to refer to the Agreement between New Zealand and the European Economic Community on trade in mutton, lamb and goatmeat signed on 14 October 1980 and to the understanding of 18 October 1980 concluded thereunder. Taking into account the expiry of this understanding and in accordance with the present review concluded pursuant to clause 14 of the Agreement and to ensure the proper functioning of the Agreement as provided in clause 2 thereof, I now have the honour to reaffirm New Zealand's intention that the marketing of New Zealand products within the Community will be conducted on an orderly basis. Moreover, New Zealand will continue to ensure that exports to particular market areas determined as sensitive will remain subject to administrative restraint thus providing a sound basis for market development.

Accordingly, the following arrangements shall apply during the period 1 January 1984 to 31 December 1988, or such later date as agreed.

New Zealand will ensure that exports to France will be limited to a quantity of 3 500 tonnes cwe in 1984.

For each year thereafter, the quantity shall be that fixed for the preceding year plus 10 %.

Quantities to be exported by New Zealand to Ireland will be fixed at an appropriate time by the procedure provided for in clause 10.

By way of derogation from the above, the quantities for 1987 and 1988 will be fixed by New Zealand before 1 August in the preceding year, after consultation with the Community through the Commission.

This understanding shall be considered as an integral part of the Agreement referred to in the first paragraph hereof.

I should be obliged if you would kindly acknowledge receipt of this letter.

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

For the Government of New Zealand

Letter No 2

Sir,

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

'I have the honour to refer to the Agreement between New Zealand and the European Economic Community on trade in mutton, lamb and goatmeat signed on 14 October 1980 and to the understanding of 18 October 1980 concluded thereunder. Taking into account the expiry of this understanding and in accordance with the present review concluded pursuant to clause 14 of the Agreement and to ensure the proper functioning of the Agreement as provided in clause 2 thereof, I now have the honour to reaffirm New Zealand's inention that the marketing of New Zealand products within the Community will be conducted on an orderly basis. Moreover, New Zealand will continue to ensure that exports to particular market areas determined as sensitive will remain subject to administrative restraint thus providing a sound basis for market development.

Accordingly, the following arrangements shall apply during the period 1 January 1984 to 31 December 1988, or such later date as agreed.

New Zealand will ensure that exports to France will be limited to a quantity of 3 500 tonnes cwe in 1984.

For each year thereafter, the quantity shall be that fixed for the preceding year plus 10 %.

Quantities to be exported by New Zealand to Ireland will be fixed at an appropriate time by the procedure provided for in clause 10.

By way of derogation from the above, the quantities for 1987 and 1988 will be fixed by New Zealand before 1 August in the preceding year, after consultation with the Community through the Commission.

This understanding shall be considered as an integral part of the Agreement referred to in the first paragraph hereof.

I should be obliged if you would kindly acknowledge receipt of this letter.'

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

For the Council

of the European Communities