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9. 19991 23PMX + USTR/GENERAL COUNSEL:R GENEVA ONO. 6245 DC ve.I.C.E LEREVE 2 TOOD I-VID -.02/0 Travall-845 FOR: Karen EUROPEAN COMMISSION Permanent Delegation from hal 10 the International Organizations in Geneve Head of Delegation MASS BURMA BACKGROUND 123 Geneva, 9 February 1999 D(99) burrisec902 Rita, Dear Ambassador, I refer to the WTO Dispute Settlement action in relation to Massachusetts" so-called "Burina Law". The European Community has taken careful note of the 4 November 1998 ruling by the US District Court in Boston that the Law. in question is unconstitutional under US Law, and of the subsequent 17 November injunction by the same court berring Massachusetts from enforcing the Law. One of the practical effects of these decisions is to meet the EC's immediate WTO concerns in this case, as the application of the law is currently suspended. As such, the EC welcomes the decisions of the COURL This assessment is without prejudice to the views of the EC- of which you are aware and which remain unchanged - regarding the incompatibility of this Law with the requirements of the Agreement on Government Procurement. In the Hghr of the developments in the case of the Massachusetts Law, I am writing to the Chairman of the Panel, Mr Ole Lundby, to inform him of the EC's request to the suspend the proceedings of the Panel pursuant to Article 12:12 of the DSU. The EC has also taken note of the fact that Massachusetts has appealed the 4 November ruling and that this appeal process is currently underway. The EC wishes to be kept fully informed of and will closely monitor, any developments in relation to this Law. In this context, my authorities have instructed the to inform you that, if at any time either the November ruling or the 17 November infunction is overnarned, or the EC otherwise determines that the Law is having an effect on EC companies, the EC will immediately request. that Panel proceedings be re-established. Furthermore, it is our expectation that the US Administration will intervene in the appropriate fashion during the Appeal process. I would also like to take this opportunity of reminding you that the EC remains deeply concerned about the wider issue of sub-federal selective purchasing measures, which continue to be adopted despite the November court rulings. In this respect, I refer you in particular to the December 1998 Los Angeles City ordinance prohibiting the award of HE Mrs Rita HAYES Ambassador Permanent Mission of the United States Avenue de In Paix, 1.3 1202 GENEVA P.Q. Box 155, 37-39 de de Vermont, CH-1211 GENEVA 20: Telephone : direct line (*41-22) 9182211 Pax 734.2235 Teker: 414165 ECHO OH