Exchange of letters concerning article 4 of the Agreement between the European Community and the Republic of Hungary on the reciprocal protection and control of wine names

Letter No 1

Brussels,

Sir,

I have the honour to refer to the Agreement between the European Community and the Republic of Hungary on the reciprocal protection and control of wine names signed today, and in particular Article 4 (3) thereof.

In this connection, I wish to confirm the following:

1. For a transitional period of thirteen years from the entry into force of that Agreement, the application of the letter will not preclude the lawful use of the name 'Tocai` to designate and present certain Italian quality wines psr under the following conditions.

Without prejudice to particular Community provisions and, where applicable, any more restrictive national provisions, the wine must be:

- obtained from the 'Tocai friulano` vine variety;

- produced from grapes totally harvested in the Italian regions Veneto and Friuli;

- designated and presented solely by the name of the variety 'Tocai friulano` or by its synonym 'Tocai italico`, the two words making up those names appearing together without any intervening words, in characters of the same type and size on a single line and separate from the name of the geographical unit in which the wine originates. In addition, the size of the characters used for those words may not exceed that of the characters giving the name of that geographical unit;

- marketed outside the territory of Hungary.

2. It is however agreed that the term 'Tocai` may be used for one year from the entry into force of the Agreement to designate the quality wines psr in question under conditions other than those laid down in point 1.

3. It is understood that the quality wines psr in question designated and presented in accordance with the applicable provisions before the expiry of the transitional period referred to in point 1 may be put on the market until stocks are exhausted.

4. Without prejudice to the provisions referred to in point 3, the possibility of using the name 'Tocai` in accordance with the conditions set out in point 1 will expire at the end of the transitional period referred to therein.

I should be obliged if you would confirm that the Government of Hungary is in agreement with the contents of this letter.

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

On behalf of the Council

of the European Union

Letter No 2

Brussels,

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 the European Community and the Republic of Hungary on the reciprocal protection and control of wine names signed today, and in particular Article 4 (3) thereof.

In this connection, I wish to confirm the following:

1. For a transitional period of thirteen years from the entry into force of that Agreement, the application of the latter will not preclude the lawful use of the name 'Tocai` to designate and present certain Italian quality wines psr under the following conditions.

Without prejudice to particular Community provisions and, where applicable, any more restrictive national provisions, the wine must be:

- obtained from the 'Tocai friulano` vine variety;

- produced from grapes totally harvested in the Italian regions Veneto and Friuli;

- designated and presented solely by the name of the variety 'Tocai friulano` or by its synonym 'Tocai italico`, the two words making up those names appearing together without any intervening words, in characters of the same type and size on a single line and separate from the name of the geographical unit in which the wine originates. In addition, the size of the characters used for those words may not exceed that of the characters giving the name of that geographical unit;

- marketed outside the territory of Hungary.

2. It is however agreed that the term 'Tocai` may be used for one year from the entry into force of the Agreement to designate the quality wines psr in question under conditions other than those laid down in point 1.

3. It is understood that the quality wines psr in question designated and presented in accordance with the applicable provisions before the expiry of the transitional period referred to in point 1 may be put on the market until stocks are exhausted.

4. Without prejudice to the provisions referred to in point 3, the possibility of using the name 'Tocai` in accordance with the conditions set out in point 1 will expire at the end of the transitional period referred to therein.

I should be obliged if you would confirm that the Government of Hungary is in agreement with the contents of this letter.`

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 Republic of Hungary

JOINT DECLARATION CONCERNING ARTICLE 4 (1) (B) OF THE AGREEMENT

In respect of Article 4 (1) (b) first indent the Contracting Parties agree that should in the future the issue of the name 'Pannónia` arise in any negotiation between the Community and a third country the Community and Hungary shall consult in order to find an acceptable solution.

JOINT DECLARATION CONCERNING ARTICLE 4 (5) OF THE AGREEMENT

In respect of Article 4 (5) (a) the Contracting Parties noted that at the time of the negotiations they were not aware of any specific case to which the provisions of this Article could be applicable.

In respect of Article 4 (5) (b) the Contracting Parties agree that all the derived forms of the name 'Tokaj` (e.g.) Tokajske, Tokajer, etc.) are protected for Hungary under this Article.

DECLARATION BY THE EUROPEAN COMMUNITY ON THE TOTAL ALCOHOLIC STRENGTH OF CERTAIN QUALITY WINES IMPORTED FROM HUNGARY

The Community agrees to grant the derogation referred to in Article 3 of Regulation (EEC) No 3677/89 in regard to the total alcoholic strength of certain imported high quality wines from Hungary for an unlimited time period. This derogation shall be applicable no later than on the date of entry into force of the Agreement between the European Community and the Republic of Hungary on the reciprocal protection and control of wine names.