JAPAN - TAXES ON ALCOHOLIC BEVERAGES

                           Mutually Acceptable Solution on Modalities for Implementation

        The following communication, dated 9 January 1998, from the Permanent Mission of Japan and the Permanent Mission of the United States, together with enclosures, is circulated to Members at the request of both delegations.

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        The Governments of the United States of America and Japan wish to notify the Dispute Settlement Body ("DSB") that they have reached a mutually satisfactory solution regarding the implementation by Japan of the conclusions and recommendations adopted by the DSB in the dispute "Japan - Taxes on Alcoholic Beverages" (WT/DS11/8).  Accordingly, the United States and Japan consider that Article 21.6 of the Understanding on Rules and Procedures Governing the Settlement of Disputes no longer requires that this item remain on the agenda of the DSB.

        Please find attached the text of the exchange of letters of 15 December 1997 on this subject.