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OCR Page 1 of 469. 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
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