PROTOCOL to the Association Agreement between the European Economic Community and the Republic of Cyprus consequent on the accession of the Kingdom of Spain and the Portuguese Republic to the Community

THE EUROPEAN ECONOMIC COMMUNITY,

of the one part, and

THE REPUBLIC OF CYPRUS,

of the other part,

HAVING REGARD to the Association Agreement between the European Economic Community and the

Republic of Cyprus signed at Brussels on 19 December 1972, hereinafter referred to as 'the Agreement',

WHEREAS the Kingdom of Spain and the Portuguese Republic became members of the European Communities on 1 January 1986,

HAVE DECIDED to determine by common agreement the adjustments and transitional measures to the Agreement consequent on the accession of the Kingdom of Spain and the Portuguese Republic to the European Economic Community and to this end they have designated as their Plenipotentiaries:

THE COUNCIL OF THE EUROPEAN COMMUNITIES:

Uffe ELLEMANN-JENSEN,

Minister for Foreign Affairs of Denmark,

President-in-Office of the Council of the European Communities;

Claude CHEYSSON,

Member of the Commission of the European Communities;

THE GOVERNMENT OF THE REPUBLIC OF CYPRUS:

George IACOVOU,

Minister for Foreign Affairs;

WHO, having exchanged their Full Powers, found in good and due form,

HAVE AGREED AS FOLLOWS:

TITLE I

ADJUSTMENTS

Article 1

The Spanish and Portuguese texts of the Agreement, including the Annexes and Protocols forming an integral part thereof and the Declarations annexed to the Final Act, shall be as authentic as the original texts. The Association Council shall approve the Spanish and Portuguese versions.

TITLE II

TRANSITIONAL MEASURES

CHAPTER I

PROVISIONS APPLICABLE TO THE KINGDOM OF SPAIN

Section I

General Provisions

Article 2

1. On the entry into force of this Protocol, the Kingdom of Spain shall apply to imports of products originating in Cyprus, other than those listed in Annex I, the same customs duties as it applies to like products from the Community as constituted on 31 December 1985. This provision shall apply in accordance with paragraphs 2 and 3 with Article 3.

2. The Kingdom of Spain shall dismantle customs duties on imports originating in Cyprus in accordance with the following timetable:

- on 1 March 1986 each duty shall be reduced to 90 % of the basic duty,

- on 1 January 1987 each duty shall be reduced to 77,5 % of the basic duty,

- on 1 January 1988 each duty shall be reduced to 62,5 % of the basic duty,

- on 1 January 1989 each duty shall be reduced to 47,5 % of the basic duty,

- on 1 January 1990 each duty shall be reduced to 35 % of the basic duty,

- on 1 January 1991 each duty shall be reduced to 22,5 % of the basic duty,

- on 1 Janaury 1992 each duty shall be reduced to 10 % of the basic duty,

- the final reduction of 10 % shall be made on 1 January 1993.

3. The duties calculated in accordance with paragraph 2 shall be rounded down to one decimal place, by deletion of the second decimal.

Article 3

1. The basic duty for each product to which the successive reductions provided for in Article 2 (2) are to be applied shall be the duty actually applied by the Kingdom of Spain vis-à-vis the Community on 1 January 1985.

2. By way of derogation from paragraph 1:

- in the case of products listed in Annex I, the basic duty shall be the duty applied by the Kingdom of Spain vis-à-vis Cyprus on 1 January 1985,

- in the case of the following products the basic duties shall be those indicated:

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Article 4

Should the Kingdom of Spain suspend customs duties on imports from the Community as constituted on 31 December 1985 or reduce them more rapidly than envisaged under the timetable laid down, it shall also suspend or reduce by the same percentage the customs duties applying to like products originating in Cyprus, other than products listed in Annex I.

Article 5

1. The Kingdom of Spain shall apply quantitative import restrictions:

- until 31 December 1988 for the products originating in Cyprus, listed in Annex II,

- until 31 December 1989 for the products originating in Cyprus, listed in Annex III.

2. The restrictions referred to in paragraph 1 shall take the form of quotas.

3. The initial quotas are indicated in Annex II or Annex III as appropriate.

The quotas listed in Annex II and quotas 1 to 5 and 10 to 14 in Annex III shall be increased at the beginning of each year by 25 % in the case of ECU quotas and 20 % in the case of volume quotas. Each successive increase shall be added to the quota and the subsequent increase calculated on the basis of the total thus obtained.

Quotas 6 to 9 in Annex III shall be increased by:

- 13 % on 1 January 1986,

- 18 % on 1 January 1987,

- 20 % on 1 January 1988,

- 20 % on 1 January 1989.

4. Where it is found that Spanish imports of a product listed in Annex II or III have been less than 90 % of the quota level in two consecutive years, imports of that product originating in Cyprus shall be liberalized at the beginning of the year following the two years in question provided the product concerned is at that time liberalized vis-à-vis the Community as constituted on 31 December 1985.

Should the Kingdom of Spain liberalize imports from the Community as constituted on 31 December 1985 of a product listed in Annex II or III, or increase a quota applicable to the Community as constituted on 31 December 1985 by more than the minimum percentage indicated in paragraph 3, it shall also liberalize imports of that product from Cyprus, or increase the quota proportionately.

5. The Kingdom of Spain shall administer the quotas referred to in paragraph 2 in accordance with the same rules and administrative practices it applies to imports of products originating in the Community as constituted on 31 December 1985.

Article 6

For products covered by Regulation (EEC) N° 3033/80 and originating in Cyprus, the Kingdom of Spain shall dismantle the customs duty constituting the fixed component of the charge in accordance with the timetable laid down in Article 2 (2), starting from the basic duty indicated in Annex IV.

Section II

Products listed in Annex II to the Treaty establishing the European Economic Community

Article 7

1. For products originating in Cyprus and listed in Annex II to the Treaty establishing the European Economic Community, the Kingdom of Spain shall, subject to the special provisions laid down below, apply a duty which reduces the difference between the basic duty and the preferential duty in accordance with the following timetable:

- on 1 March 1986, the difference shall be reduced to 90,9 % of the initial difference,

- on 1 January 1987, the difference shall be reduced to 81,8 % of the initial difference,

- on 1 January 1988, the difference shall be reduced to 72,7 % of the initial difference,

- on 1 January 1989, the difference shall be reduced to 63,6 of the initial difference,

- on 1 January 1990, the difference shall be reduced to 54,5 % of the initial difference,

- on 1 January 1991, the difference shall be reduced to 45,4 % of the initial difference,

- on 1 January 1992, the difference shall be reduced to 36,3 % of the initial difference,

- on 1 January 1993, the difference shall be reduced to 27,2 % of the initial difference,

- on 1 January 1994, the difference shall be reduced to 18,1 % of the initial difference,

- on 1 January 1995, the difference shall be reduced to 9,0 % of the initial difference.

The Kingdom of Spain shall apply the preferential rates in full from 1 January 1996.

2. The Kingdom of Spain shall postpone application of the preferential arrangements for fruit and vegetables

covered by Regulation (EEC) N° 1035/72 until 31 December 1989.

From 1 January 1990, the Kingdom of Spain shall apply to those products a duty which reduces the difference between the duty actually applied on 31 December 1989 and the preferential duty in accordance with the following timetable:

- on 1 January 1990, the difference shall be reduced to 85,7 % of the initial difference,

- on 1 January 1991, the difference shall be reduced to 71,4 % of the initial difference,

- on 1 January 1992, the difference shall be reduced to 57,1 % of the initial difference,

- on 1 January 1993, the difference shall be reduced to 42,8 % of the initial difference,

- on 1 January 1994, the difference shall be reduced to 28,5 % of the initial difference,

- on 1 January 1995, the difference shall be reduced to 14,2 % of the initial difference.

The Kingdom of Spain shall apply the preferential rates in full from 1 January 1996.

3. The basic duty referred to in paragraphs 1 and 2 shall be that defined in Article 3 (1).

Article 8

For the products referred to in Article 7 (1), the Kingdom of Spain shall apply the non-tariff benefits and levy reductions

laid down by the Agreement as from the entry into force of this Protocol.

Article 9

Quantitative restrictions may be applied to imports into Spain of products originating in Cyprus:

(a) until 31 December 1989 in respect of the products listed in Annex V;

(b) until 31 December 1995 in respect of products subject under Article 81 of the Act of Accession to the supplementary mechanism applicable to imports into Spain from the Community as constituted on 31 December 1985, other than products falling within Regulation (EEC) N° 1035/72.

Article 10

In the case of products referred to in Article 7 (1) which are not subject on 1 March 1986 to a common organization of the market, the provisions of the Agreement concerning the elimination of charges having equivalent effect to customs duties and the abolition of quantitative restrictions and measures having equivalent effect shall not apply to such charges, restrictions or measures where they form an integral

part of a national organization of the market in Spain at the time of accession.

This provision shall apply only until a common organization of the market is established for such products or until 31 December 1995, whichever is the earlier, and only insofar as is strictly necessary to ensure the functioning of the national organization.

Section III

Canary Islands and Ceuta and Melilla

Article 11

1. Without prejudice to the following provisions, the arrangements for trade between the Canary Islands and Ceuta and Melilla on the one hand and Cyprus on the other shall be the same as those for trade between the Community and Cyprus, provided the Republic of Cyprus accords products originating in the Canary Islands and Ceuta and Melilla the same treatment it accords those from the Community.

2. Customs duties applied by the Canary Islands and Ceuta and Melilla to products other than those listed in Annex II to the Treaty establishing the European Economic Community and the charge known as 'arbitrio insular - tarifa general' existing in the Canary Islands shall be dismantled in respect of products originating in Cyprus in accordance with the same timetable and arrangements indicated in Articles 2, 3 and 4.

3. Customs duties existing in the Canary Islands and in Ceuta and Melilla with regard to products listed in Annex II to the Treaty establishing the European Economic Community and originating in Cyprus shall be aligned progressively on the preferential duties applied by the Community in respect of such products subject to the proviso that those territories may accord more favourable treatment to such products than the Community does.

In no case shall duties be dismantled at a faster rate or otherwise than is laid down in Articles 2, 3 and 4.

4. The charge known as 'arbitrio insular - tarifa especial' in the Canary Islands shall be abolished in respect of products originating in Cyprus as from the entry into force of this Protocol.

However, the said charge may be retained in respect of imports of the products listed in Annex VI at 90 % of the rate therein indicated provided the lower rate is applied uniformly to all imports of the products in question originating in Cyprus. The charge shall be abolished when it is abolished vis-à-vis the Community.

The said charge may at no time be higher than the Spanish Customs Tariff as amended with a view to the phasing-in of the Common Customs Tariff.

CHAPTER II

PROVISIONS APPLICABLE TO THE PORTUGUESE

REPUBLIC

Section I

General provisions

Article 12

1. The Portuguese Republic shall abolish customs duties on imports of products originating in Cyprus as from entry into force of this Protocol.

2. By way of derogation from paragraph 1, the Portuguese Republic shall dismantle customs duties on imports originating in Cyprus of the products listed in Annexes VII and VIII in accordance with the following timetable:

- on 1 March 1986, each duty shall be reduced to 90 % of the basic duty,

- on 1 January 1987, each duty shall be reduced to 80 % of the basic duty,

- on 1 January 1988, each duty shall be reduced to 65 % of the basic duty,

- on 1 January 1989, each duty shall be reduced to 50 % of the basic duty,

- on 1 January 1990, each duty shall be reduced to 40 % of the basic duty,

- on 1 January 1991, each duty shall be reduced to 30 % of the basic duty,

- the final two 15 % reductions shall be made on 1 January 1992 and 1 January 1993.

3. The duties calculated in accordance with paragraph 2 shall be rounded down to one decimal place by deletion of the second decimal.

Article 13

1. The basic duty for each product to which the successive reductions provided for in Article 12 (2) are to be applied shall be the duty actually applied by the Portuguese Republic vis-à-vis Cyprus on 1 January 1985.

2. By way of derogation from paragraph 1, the Portuguese Republic shall dismantle customs duties on the products listed in Annex VIII starting from the basic duties indicated in that Annex, provided the said duties are higher than the duties actually applied by the Portuguese Republic vis-à-vis Cyprus on 1 January 1985.

Article 14

Should the Portuguese Republic suspend customs duties on imports from the Community as constituted on 31 December 1985 or reduce them more rapidly than envisaged in the timetable laid down, it shall also suspend or reduce by the

same percentage the customs duties applying to like products originating in Cyprus, with the exception of the products listed in Annex VII B.

Article 15

1. Charges having equivalent effect to customs duties applied by the Portuguese Republic to imports originating in Cyprus shall be abolished on the date of entry into force of this Protocol.

2. The following charges applied by the Portuguese Republic to trade with Cyprus shall be progressively dismantled in accordance with the timetable indicated:

(a) the 0,4 % ad valorem charge applied:

- to goods imported temporarily,

- to re-imported goods (other than containers),

- to goods imported under inward processing arrangements allowing drawback of duties paid on the import goods following export of the products obtained,

shall be:

- reduced to 0,2 % on 1 January 1987, and

- abolished on 1 January 1988;

(b) the 0,9 % ad valorem charge applied to goods imported for home use shall be:

- reduced to 0,6 % on 1 January 1989,

- reduced to 0,3 % on 1 January 1990, and

- abolished on 1 January 1991.

Article 16

1. As from entry into force of this Protocol, the Portuguese Republic shall abolish customs duties of a fiscal nature or the fiscal component of customs duties existing at that date on imports of products originating in Cyprus.

2. In the case of the products listed in Annex IX, the customs duties of a fiscal nature or fiscal component of customs duties applied by the Portuguese Republic shall be eliminated in accordance with the timetable laid down in Article 12 (2).

3. Should the Portuguese Republic exercise the option open to it under Article 196 (3) of the Act of Accession of replacing a customs duty of a fiscal nature or fiscal component of such a duty by an internal charge, such component as is not covered by that charge shall represent the basic duty to which the successive reductions shall be applied. It shall be dismantled in trade with Cyprus in accordance with the timetable laid down in Article 12 (2).

Article 17

Until 31 December 1987 the Portuguese Republic shall retain quantitative restrictions on imports from Cyprus of motor vehicles subject to the special arrangements agreed between

the Community and the Portuguese Republic in accordance with Protocol 18 to the Act of Accession.

Article 18

For the products covered by Regulation (EEC) N° 3033/80 and originating in Cyprus, the Portuguese Republic shall dismantle the customs duty constituting the fixed component of the charge in accordance with the timetable laid down in Article 12 (2), starting from the basic duty indicated in Annex X.

Section II

Products listed in Annex II to the Treaty establishing the European Economic Community

Article 19

1. For products listed in Annex II to the Treaty establishing the European Economic Community and originating in Cyprus, the Portuguese Republic shall, subject to the special provisions laid down below, apply a duty which

reduces the difference between the basic duty and the preferential duty in accordance with the following timetable:

- on 1 March 1986, the difference shall be reduced to 90,9 % of the initial difference,

- on 1 January 1987, the difference shall be reduced to 81,8 % of the initial difference,

- on 1 January 1988, the difference shall be reduced to 72,7 % of the initial difference,

- on 1 January 1989, the difference shall be reduced to 63,6 % of the initial difference,

- on 1 January 1990, the difference shall be reduced to 54,5 % of the initial difference,

- on 1 January 1991, the difference shall be reduced to 45,4 % of the initial difference,

- on 1 January 1992, the difference shall be reduced to 36,3 % of the initial difference,

- on 1 January 1993, the difference shall be reduced to 27,2 % of the initial difference,

- on 1 January 1994, the difference shall be reduced to 18,1 % of the initial difference,

- on 1 January 1995, the difference shall be reduced to 9,0 % of the initial difference.

The Portuguese Republic shall apply the preferential rates in full from 1 January 1996.

2. The Portuguese Republic shall postpone application of the preferential arrangements for products covered by the following Regulations until the beginning of the second stage as defined in Article 260 of the Act of Accession:

- Regulation (EEC) N° 804/68 on the common organization of the market in milk and milk products,

- Regulation (EEC) N° 1035/72 on the common organization of the market in fruit and vegetables,

- Regulation (EEC) N° 822/87 on the common organization of the market in wine.

From the beginning of the second stage the Portuguese Republic shall apply a duty to these products which reduces the difference between the duty actually applied at the end of the first stage and the preferential duty in accordance with the following timetable:

ii(i) where the second stage runs for five years:

- on 1 January 1991, the difference shall be reduced to 83,3 % of the initial difference,

- on 1 January 1992, the difference shall be reduced to 66,6 % of the initial difference,

- on 1 January 1993, the difference shall be reduced to 49,9 % of the initial difference,

- on 1 January 1994, the difference shall be reduced to 33,2 % of the initial difference,

- on 1 January 1995, the difference shall be reduced to 16,5 % of the initial difference;

i(ii) where the second stage runs for seven years:

- on 1 January 1989, the difference shall be reduced to 87,5 % of the initial difference,

- on 1 January 1990, the difference shall be reduced to 75 % of the initial difference,

- on 1 January 1991, the difference shall be reduced to 62,5 % of the initial difference,

- on 1 January 1992, the difference shall be reduced to 50 % of the initial difference,

- on 1 January 1993, the difference shall be reduced to 37,5 % of the initial difference,

- on 1 January 1994, the difference shall be reduced to 25 % of the initial difference,

- on 1 January 1995, the difference shall be reduced to 12,5 % of the initial difference;

(iii) the Portuguese Republic shall apply the preferential rates in full from 1 January 1996.

3. The basic duty referred to in paragraphs 1 and 2 shall be that defined in Article 13 (1).

Article 20

For the products referred to in Article 19 (2), the Portuguese Republic shall postpone until the beginning of the second stage, as defined in Article 260 of the Act of Accession, the application of the non-tariff benefits and levy reductions laid down by the Agreement.

Article 21

1. Quantitative restrictions may be applied until 31 December 1992 to Portuguese imports originating in Cyprus of the products listed in Annex XI.

2. Quantitative restrictions may be retained until 31 December 1995 for Portuguese imports originating in Cyprus of the products listed in Annex XII.

Article 22

In the case of products referred to in Article 19 (1) which are not subject on 1 March 1986 to a common organization of the market, the provisions of the Agreement concerning the elimination of charges having equivalent effect to customs duties and the abolition of quantitative restrictions and measures having equivalent effect shall not apply to such charges, restrictions or measures where they form an integral part of a national organization of the market in Portugal at the time of accession.

This provision shall apply only until a common organization of the market is established for such products or until 31 December 1995, whichever is the earlier, and only insofar as is strictly necessary to ensure the functioning of the national organization.

TITLE III

GENERAL AND FINA PROVISIONS

Article 23

The Association Council shall make any changes to the origin rules which may be necessary consequent on the accession of the Kingdom of Spain and the Portuguese Republic to the European Communities.

Article 24

The Annexes to this Protocol shall form an integral part thereof. This Protocol shall form an integral part of the Agreement.

Article 25

This Protocol shall be approved by the Contracting Parties in accordance with their own procedures. It shall enter into force on the first day of the second month following notification by the Contracting Parties of the completion of such procedures.

On the entry into force of this Protocol, the reductions in duties and increases in quotas and any other measures provided for by the Protocol for the year during which that entry into force takes place shall apply immediately. This Protocol shall not produce any effects with regard to periods prior to its entry into force.

Article 26

This Protocol is drawn up in duplicate in the Danish, Dutch, English, French, German, Greek, Italian, Portuguese and Spanish languages, each of these texts being equally authentic.

En fe de lo cual, los plenipotenciarios abajo firmantes suscriben el presente Protocolo.

Til bekræftelse heraf har undertegnede befuldmægtigede underskrevet denne protokol.

Zu Urkund dessen haben die unterzeichneten Bevollmächtigten ihre Unterschriften unter dieses Protokoll gesetzt.

Åéò ðéóôþóç ôùí áíùôÝñù, ïé õðïãåãñáììÝíïé ðëçñåîïýóéïé Ýèåóáí ôéò õðïãñáöÝò ôïõò óôï ðáñüí ðñùôüêïëëï.

In witness whereof the undersigned Plenipotentiaries have signed this Protocol.

En foi de quoi, les plénipotentiaires soussignés ont apposé leurs signatures au bas du présent protocole.

In fede di che, i plenipotenziari sottoscritti hanno apposto le loro firme in calce al presente protocollo.

Ten blijke waarvan de ondergetekende gevolmachtigden hun handtekening onder dit Protocol hebben gesteld.

Em fé do que, os plenipotenciários abaixo assinados apuseram as suas assinaturas no final do presente Protocolo.

Hecho en Luxemburgo, el diecinueve de octubre de mil novecientos ochenta y siete.

Udfærdiget i Luxembourg, den nittende oktober nitten hundrede og syvogfirs.

Geschehen zu Luxemburg am neunzehnten Oktober neunzehnhundertsiebenundachtzig.

éÅãéíå óôï Ëïõîåìâïýñãï óôéò äÝêá åííÝá Ïêôùâñßïõ ÷ßëéá åííéáêüóéá ïãäüíôá åðôÜ.

Done at Luxembourg on the nineteenth day of October in the year one thousand nine hundred and eighty-seven.

Fait à Luxembourg, le dix-neuf octobre mil neuf cent quatre-vingt-sept.

Fatto a Lussemburgo, addì diciannove ottobre millenovecentottantasette.

Gedaan te Luxemburg, de negentiende oktober negentienhonderd zevenentachtig.

Feito no Luxemburgo, em dezanove de Outubro de mil novecentos o oitenta e sete.

Por el Consejo de las Comunidades Europeas

For Rådet for De Europæiske Fællesskaber

Für den Rat der Europäischen Gemeinschaften

Ãéá ôï Óõìâïýëéï ôùí Åõñùðáúêþí ÊïéíïôÞôùí

For the Council of the European Communities

Pour le Conseil des Communautés européennes

Per il Consiglio delle Comunità europee

Voor de Raad van de Europese Gemeenschappen

Pelo Conselho das Comunidades Europeias

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Por el Gobierno de la República de Chipre

For regeringen for Republikken Cypern

Für die Regierung der Republik Zypern

Ãéá ôçí êõâÝñíçóç ôçò ÊõðñéáêÞò Äçìïêñáôßáò

For the Government of the Republic of Cyprus

Pour le gouvernement de la république de Chypre

Per il governo della Repubblica di Cipro

Voor de Regering van de Republiek Cyprus

Pelo Governo da República de Chipre

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ANNEX I

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ANNEX II

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ANNEX III

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ANNEX IV

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ANNEX V

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ANNEX VI

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ANNEX VII

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ANNEX VIII

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ANNEX IX

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ANNEX X

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ANNEX XI

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ANNEX XII

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Community Declaration concerning Article 3

The Community declares that if, after 1 January 1985 and before accession to the Community of the Kingdom of Spain, a tariff reduction is applied by Spain vis-à-vis the Community, such reduced duty shall be considered as the basic duty referred to in Article 3 (1).

Community Declaration concerning Articles 7 and 19

The Community declares that the schedule of reduction in customs duties applied by the Kingdom of Spain and the Portuguese Republic for the products listed in Annex II of the Treaty establishing the European Economic Community and originating in Cyprus takes into account the provisions concerning duty reductions of the Protocol on the customs union initialled on 22 May 1987.

Declaration by the Representative of the Federal Republic of Germany on the Definition of German nationality

Every German person, within the meaning of the basic constitutional law applying in the Federal Republic of Germany, is considered as a national of the Federal Republic of Germany.

Declaration by the representative of the Federal Republic of Germany on the Application of the Protocol to Berlin

The Protocol shall also apply to Land Berlin provided that no statement to the contrary by the Government of the Federal Republic of Germany is addressed to the other Contracting Parties within three months of the entry into force of the Protocol.