AGREEMENT in the form of an exchange of letters between the European Economic Community and the Union of Soviet Socialist Republics concerning 'Testausschreibung'

A. Letter from the Community

Brussels, 18 December 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 the USSR attaches to the expansion of economic relations and the USSR's contractual relations with the Community will be taken into consideration.

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

Brussels, 18 December 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 the USSR attaches to the expansion of economic relations and the USSR's contractual relations with the Community will be taken into consideration.

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

Union of Soviet Socialist Republics