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EXCHANGE OF LETTERS

between the European Economic Community and the Government of Australia on the Arrangement between Australia and the Community concerning cheese

A. Letter from the European Economic Community

Sir,

I have the honour to refer to the Arrangement between Australia and the Community concerning cheese in Annex 3 to the Agreed Record of conclusions reached in bilateral negotiations between the European Communities and Australia in the GATT (General Agreement on Tariffs and Trade) multilateral trade negotiations, signed on 29 May 1979, and to the negotiations concerning certain amendments to this Arrangement concluded in Brussels on 3 October 1984.

In accordance with the conclusions of these negotiations I have the honour to propose the following amendments of the abovementioned Arrangement:

1. Paragraph 4 of Parts I and II shall be suspended;

2. The following shall be added to paragraph 1 of the section entitled 'Administrative Cooperation':

'This exchange of information shall take place quarterly, on a reciprocal basis.';

3. Appendices I and II shall be replaced by the following:

'Appendix I

EEC concession on Cheddar cheese

1.2.3 // // // // CCT heading No // Description // Rate of conventional duty // // // // 04.04 // Cheese and curd: // // // E. Other: // // // I. Not grated or powdered, of a fat content, by weight, not exceeding 40 % and a water content, calculated by weight of the non-fatty matter: // // // b) exceeding 47 % but not exceeding 72 %: // // // 1. Cheddar: // // // - Whole Cheddar cheeses (a) of a minimum fat content of 50 % by weight, in the dry matter, matured for at least three months (b) // L (c) // // //

(a) The expression "whole cheeses", as used in subheading 04.04 E I b) 1 shall be taken to apply to:

- cheeses of the conventional flat cylindrical shape of a net weight of not less than 33 kilograms but not more than 44 kilograms,

- cubic blocks of cheese of a net weight of 10 kilograms or more.

(b) Entry under this subheading is subject to conditions to be determined by the competent authorities.

(c) 15 ECU per 100 kilograms net weight within the limits of an annual levy reduced quota of 9 000 tonnes to be granted by the competent authorities of the European Communities.

Appendix II

EEC concession on Cheddar and other cheeses for processing

1.2.3 // // // // CCT heading No // Description // Rate of conventional duty // // // // 04.04 // Cheese and curd: // // // E. Other: // // // I. Not grated or powdered, of a fat content, by weight, not exceeding 40 % and a water content, calculated by weight of the non-fatty matter: // // // b) exceeding 47 % but not exceeding 72 %: // // // 1. Cheddar: // // // - Cheddar for processing (a) (b) // L (c) // // 2. Other: // // // - for processing (a) (b) // L (c) // // //

(a) The checks on use for this particular end-use are carried out pursuant to the Community provisions governing this matter.

(b) Entry under this subheading is subject to conditions to be determined by the competent authorities.

(c) 15 ECU per 100 kilograms net weight within the limits of an annual levy reduced quota of 3 500 tonnes to be granted by the competent authorities of the European Communities.'

I have further the honour to propose the following:

- the arrangements mentioned above shall enter into effect no later than 30 days after the date of your reply. They shall remain in effect until 31 December 1986 and shall continue in effect thereafter subject to each Party having the right to terminate them by giving six months' notice in writing,

- in the event that the present arrangements be terminated the original terms of the Arrangement of 1979 and the concessions provided for in Schedule LXXII-EEC and applicable prior to the entry into effect of the present arrangement shall apply fully.

I would be obliged if you would kindly let me know that your Government accepts the foregoing proposals.

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

On behalf of the Council

of the European Communities

B. Letter from the Government of Australia

Sir,

I am in receipt of your letter of today's date, which reads as follows:

'I have the honour to refer to the Arrangement between Australia and the Community concerning cheese in Annex 3 to the Agreed Record of conclusions reached in bilateral negotiations between the European Communities and Australia in the GATT (General Agreement on Tariffs and Trade) multilateral trade negotiations, signed on 29 May 1979, and to this Arrangement concluded in Brussels on 3 October 1984.

In accordance with the conclusions of these negotiations I have the honour to propose the following amendments of the abovementioned Arrangement:

1. Paragraph 4 of Parts I and II shall be suspended;

2. The following shall be added to paragraph 1 of the section entitled ''Administrative Cooperation'';

"This exchange of information shall take place quarterly, on a reciprocal basis.";

3. Appendices I and II shall be replaced by the following:

''Appendix I

EEC concession on Cheddar cheese

1.2.3 // // // // CCT heading No // Description // Rate of conventional duty // // // // 04.04 // Cheese and curd: // // // E. Other: // // // I. Not grated or powdered, of a fat content, by weight, not exceeding 40 % and a water content, calculated by weight of the non-fatty matter: // // // b) exceeding 47 % but not exceeding 72 %: // // // 1. Cheddar: // // // - Whole Cheddar cheeses (a) of a minimum fat content of 50 % by weight, in the dry matter, matured for at least three months (b) // L (c) // // //

(a) The expression 'whole cheeses', as used in subheading 04.04 E I b) 1 shall be taken to apply to:

- cheeses of the conventional flat cylindrical shape of a net weight of not less than 33 kilograms but not more than 44 kilograms,

- cubic blocks of cheese of a net weight of 10 kilograms or more.

(b) Entry under this subheading is subject to conditions to be determined by the competent authorities.

(c) 15 ECU per 100 kilograms net weight within the limits of an annual levy reduced quota of 9 000 tonnes to be granted by the competent authorities of the European Communities.

Appendix II

EEC concession on Cheddar and other cheeses for processing

1.2.3 // // // // CCT heading No // Description // Rate of conventional duty // // // // 04.04 // Cheese and curd: // // // E. Other: // // // I. Not grated or powdered, of a fat content, by weight, not exceeding 40 % and a water content, calculated by weight of the non-fatty matter: // // // b) exceeding 47 % but not exceeding 72 %: // // // 1. Cheddar: // // // - Cheddar for processing (a) (b) // L (c) // // 2. Other: // // // - for processing (a) (b) // L (c) // // //

(a) The checks on use for this particular end-use are carried out pursuant to the Community provisions governing this matter.

(b) Entry under this subheading is subject to conditions to be determined by the competent authorities.

(c) 15 ECU per 100 kilograms net weight within the limits of an annual levy reduced quota of 3 500 tonnes to be granted by the competent authorities of the European Communities.''

I have further the honour to propose the following:

- the arrangements mentioned above shall enter into effect no later than 30 days after the date of your reply. They shall remain in effect until 31 December 1986 and shall continue in effect thereafter subject to each Party having the right to terminate them by giving six months' notice in writing,

- in the event that the present arrangements be terminated the original terms of the Arrangement of 1979 and the concessions provided for in Schedule LXXII-EEC and applicable prior to the entry into effect of the present arrangement shall apply fully.

I would be obliged if you would kindly let me know that your Government accepts the foregoing proposals.'

I have the honour to inform you that my Government accepts these proposals.

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

On behalf of

the Government of Australia