Attachment

Sir,

According to Protocol 1 to the Free Trade Agreement between the European Economic Community and the Kingdom of Sweden, signed in Brussels on 22 July 1972, the United Kingdom has, since January 1974, opened tariff quotas for uncoated paperboard (48.01) as well as for coated paperboard (48.07). The permissible maxima for these quotas were fixed on the basis of statistics available for the period 1968 to 1971.

In the reference period for the setting of the quotas (1968 to 1971), Swedish exports of low-coated board to the United Kingdom were declared as uncoated board. It was therefore imported under United Kingdom tariff heading No 48.01. Thus the import statistics for uncoated board (48.01) were too high and those for coated board (48.07) too low.

When this was discovered, the United Kingdom customs authorities required low-coated board to be entered under tariff heading No 48.07. This rectification requires an analogous rectification of the statistics of the reference period and therefore of the duty-free quotas set out in Annex A to Protocol 1.

As the original quotas were established by increasing the average yearly trade figure for the period 1968 to 1971 by four times 5 % cumulative, the amount corresponding to the correction should also be increased by four times 5 % and the amount thus obtained be deducted from the 1974 quota for uncoated board and added to the quota for coated board in Annex A to Protocol 1. The result would be the following:

1. I..

   48.01 ex F. Other board:

   A. Original quota 1974		37 678 t
   B. Correction	3 461 t
   C. 4 × 5 % of B	746 t
   D. Rectification	4 207 t	— 4 207 t
   E. New quota 1974		33 471 t

2. II..

   48.07 C and ex D. Other than printing and writing paper:

   A. Original quota 1974	34 998 t
   B. Rectification as in I D	+ 4 207 t
   C. New quota 1974	39 205 t

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

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