UNITED STATES - TAX TREATMENT FOR

                                             "FOREIGN SALES CORPORATIONS"

                                Request for Consultations by the European Communities

                                                                   Addendum

        The following communication, dated 4 March 1998, from the Permanent Delegation of the European Commission to the Permanent Mission of the United States and to the Dispute Settlement Body, is circulated at the request of the European Communities.

                                                            _______________

        In my letter of 18 November 1997, the European Communities requested consultations under Article 4 of the "Understanding on Rules and Procedures Governing the Settlement of Disputes", Article XXIII:1 GATT 1994, and Article 4 of the Agreement on Subsidies and Countervailing Measures (ASCM) with respect to Sections 921-927 of the Internal Revenue Code and related measures establishing special tax treatment for "Foreign Sales Corporations" (FSC).

        The European Communities hereby request the consultations to be extended also to include consultations under Article 19 of the Agreement on Agriculture.