JAPAN - TAXES ON ALCOHOLIC BEVERAGES

                                  Arbitration under Article 21(3)(c) of the Understanding

                           on Rules and Procedures Governing the Settlement of Disputes

        The following communication, dated 13 February 1997, from the arbitrator, Mr. Julio Lacarte-Muró, to the Chairman of the Dispute Settlement Body, is circulated in accordance with Article 21(3)(c) of the Understanding on Rules and Procedures Governing the Settlement of Disputes.

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       It is my honour to transmit to you my arbitration award in Japan - Taxes on Alcoholic Beverages, pursuant to Article 21(3)(c) of the Understanding on Rules and Procedures Governing the Settlement of Disputes.  It was distributed today to the parties to the dispute, and will be circulated as an unrestricted document on Friday, 14 February 1997 to the Members of the World Trade Organization.