AGREEMENT in the form of an Exchange of Letters between the European Economic Community and the Czechoslovak Socialist Republic concerning 'Testausschreibung'

A. Letter from the Community

Brussels, 27 January 1989

Sir,

Since the beginning of 1980, a new import scheme aimed at subsequent liberalization ('Testausschreibung') has been introduced by the Federal Republic of Germany covering almost half of the industrial products still subject to quantitative restrictions (apart from textile and steel products). This scheme provides on an experimental and temporary basis for the issue of import licences above and beyond the limits set by the quotas.

The 'Testausschreibung' is intended to permit an assessment, in the course of future years, of the sectors in which quantitative restrictions on imports of industrial products might be removed. During the examination of the results of the 'Testausschreibung', the particular importance which Czechoslovakia attaches to the expansion of economic relations and Czechoslovakia's contractual relations with the Community will be taken into consideration.

In the event that, in particular instances, as a result of Czechoslovak exports to the Federal Republic of Germany, market trends make it necessary to discontinue this practice, Czechoslovakia will be informed to this effect immediately and prior consultation may take place if Czechoslovakia so requests.

I should be obliged if you would confirm that your Government is in agreement with the above.

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

On behalf of the Council of the European Communities

B. Letter from Czechoslovakia

Brussels, 27 January 1989

Sir,

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

'Since the beginning of 1980, a new import scheme aimed at subsequent liberalization (''Testausschreibung'') has been introduced by the Federal Republic of Germany covering almost half of the industrial products still subject to quantitative restrictions (apart from textile and steel products). This scheme provides on an experimental and temporary basis for the issue of import licences above and beyond the limits set by the quotas.

The ''Testausschreibung'' is intended to permit an assessment, in the course of future years, of the sectors in which quantitative restrictions on imports of industrial products might be removed. During the examination of the results of the ''Testausschreibung'', the particular importance which Czechoslovakia attaches to the expansion of economic relations and Czechoslovakia's contractual relations with the Community will be taken into consideration.

In the event that, in particular instances, as a result of Czechoslovak exports to the Federal Republic of Germany, market trends make it necessary to discontinue this practice, Czechoslovakia will be informed to this effect immediately and prior consultation may take place if Czechoslovakia so requests.

I should be obliged if you would confirm that your Government is in agreement with the above.'

I have the honour to confirm that my Government is in agreement with the contents of your letter.

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

For the Government of the Czechoslovak Socialist Republic