AGREEMENT in the form of an exchange of letters amending the Agreement between the European Economic Community and Macao on trade in textile products

Letter N° 1

Sir,

1. I have the honour to refer to the consultations held on 30 July 1991 between our respective delegations for the purpose of amending the Agreement on trade in textile products between the European Economic Community and Macao, initialled on 19 July 1986 and applied since 1 January 1987.

2. As a result of these consultations, both Parties agreed to amend Article 18 (1) and Protocol F of the above Agreement so as to extend the period of application of all the provisions of the Agreement for one more year, i.e. until 31 December 1992. Consequently, the Parties also agreed to amend Annex II of the Agreement as regards the quantitative limits for exports from Macao to the Community of the textile products referred thereto for the year 1992. The modified Annex II is appended to this letter (Appendix).

3. The Parties also agreed that as regards Article 14 (3) of the Agreement, the percentage of inter-regional transfers for the year 1992 shall be determined at a later stage.

4. Both Parties agreed that this extension of the Agreement shall enter into force on 1 January 1992 and shall remain in force until 31 December 1992. The Parties agreed that this Agreement shall be applied provisionally from 1 January 1992.

5. I should be obliged if you would kindly confirm the acceptance of your Government to the foregoing.

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

For the Council

of the European Communities

Appendix

ANNEX II

(The full product descriptions of the categories listed in this Annex are to be found in Annex I of the Agreement)

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Note: The numbers in brackets are references to the footnotes in Annex II of the Agreement for the appropriate category respectively.

Letter N° 2

Sir,

I have the honour to acknowledge receipt of your letter of 30 July 1991, which reads as follows:

'1. I have the honour to refer to the consultations held on 30 July 1991 between our respective delegations for the purpose of amending the Agreement on trade in textile products between the European Economic Community and Macao, initialled on 19 July 1986 and applied since 1 January 1987.

2. As a result of these consultations, both Parties agreed to amend Article 18 (1) and Protocol F, of the above Agreement so as to extend the period of application of all the provisions of the Agreement for one more year, i.e. until 31 December 1992. Consequently, the Parties also agreed to amend Annex II of the Agreement as regards the quantitative limits for exports from Macao to the Community of the textile products referred thereto for the year 1992. The modified Annex II is appended to this letter (Appendix).

3. The Parties also agreed that as regards Article 14, paragraph 3, of the Agreement, the percentage of inter-regional transfers for the year 1992 shall be determined at a later stage.

4. Both Parties agreed that this extension of the Agreement shall enter into force on 1 January 1992 and shall remain in force until 31 December 1992. The Parties agreed that this Agreement shall be applied provisionally from 1 January 1992.

5. I should be obliged if you would kindly confirm the acceptance of your Government to the foregoing.`

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 Macao

Appendix

ANNEX II

(The full product descriptions of the categories listed in this Annex are to be found in Annex I of the Agreement)

>TABLE>

> TABLE POSITION>

Note: The numbers in brackets are references to the footnotes in Annex II of the Agreement for the appropriate category respectively.

Exchange of notes

The Directorate-General for External Relations of the Commission of the European Communities presents his compliments to the Minister for Commercial Affairs of Macao with the European Communities and the Member States and has the honour to refer to the Agreement in textile products between Macao and the Community, initialled on 19 July 1986 and applied since 1 January 1987, as extended by the exchange of letters initialled on 30 July 1991.

The Directorate-General wishes to inform the Minister for Commercial Affairs that whilst awaiting the completion of the necessary procedures for the conclusion and the coming into force of the extended Agreement, the Community is prepared to allow the provisions of the Agreement to apply de facto from 1 January 1992. This is on the understanding that either Party may at any time terminate this de facto application of the extended Agreement provided that 90 days' notice is given.

The Directorate-General for External Relations would be grateful if the Minister for Commercial Affairs would confirm his agreement to the foregoing.

The Directorate-General for External Relations avails itself of this opportunity to renew to the Minister for Commercial Affairs of Macao with the European Communities and the Member States the assurance of its highest consideration.

Exchange of notes

The Minister for Commercial Affairs of Macao with the European Communities and the Member States presents his compliments to the Directorate-General for External Relations of the Commission of the European Communities and has the honour to refer to the Director General's note regarding the Agreement in textile products between Macao and the Community, initialled on 19 July 1986 and applied since 1 January 1987, as extended by the exchange of letters initialled on 30 July 1991.

The Minister for Commercial Affairs wishes to confirm to the Directorate-General that whilst awaiting the completion of the necessary procedures for the conclusion and the coming into force of the extended Agreement, the Government of Macao is prepared to allow the provisions of the extended Agreement to apply de facto from 1 January 1992. This is on the understanding that either Party may at any time terminate this de facto application of the extended Agreement provided that 90 days' notice is given.

The Minister for Commercial Affairs of Macao to the European Communities avails himself of this opportunity to renew to the Directorate-General for External Relations the assurance of his highest consideration.

Note verbale

The Directorate-General for External Relations of the Commission of the European Communities presents its compliments to the Minister for Commercial Affairs of Macao with the European Communities and has the honour to refer to the Agreement on trade in textile products between the Community and Macao initialled on 19 July 1986 and applied since 1 January 1987, as amended by the exchange of letters initialled on 30 July 1991.

With reference to paragraph 3 of the abovementioned exchange of letters, the Directorate-General has the honour to inform the Minister for Commercial Affairs that it is now in a position to propose the following paragraph, already accepted by a certain number of supplier countries of the Community:

'The percentage of transfers between regional quota-shares referred to in Article 14 (3) of the Agreement, for the year 1992 shall be 40 %.

It is understood that if, as a result of the application of the above percentage, serious difficulties, following significant changes in the pattern of trade, occur in certain regions of the Community, both Parties shall hold consultations without delay with a view to remedying the situation.`

The Directorate-General for External Relations would be grateful if the Minister for Commercial Affairs would confirm his acceptance of the above adaptation of the Agreement, as agreed at the time of the initialling of the said exchange of letters.

The Directorate-General for External Relations of the Commission of the European Communities avails itself of this opportunity to renew to the Minister for Commercial Affairs of Macao with the European Communities the assurance of its highest consideration.

Note verbale

The Minister for Commercial Affairs of Macao with the European Communities and the Member States presents his compliments to the Directorate-General for External Relations of the Commission of the European Communities and, with reference to the Note verbale No 019052 of 25 October 1991, has the honour to confirm the agreement of the Government of Macao to the adaptation of the Agreement on trade in textile products between the European Communities and Macao by the introduction of the paragraph proposed in the Note verbale, concerning the figure of 40 % for transfers between regional quota-shares for the year 1992.

The Minister for Commercial Affairs of Macao avails himself of this opportunity to renew to the Directorate-General for External Relations of the Commission of the European Communities the assurance of his highest consideration.