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 Mr Willy DE CLERCQ, Member of the Commission with specal
 responsibility for external relations and commercial policy, is
 to make an official visit to Switzerland on 8 and 9 January.  On
 the occasion of this visit, which forms part of regular contacts
 at ministerial level between the Community and Switzerland, a
 framework Agreement for scientific and technical cooperation is
 to be signed between the Community and Switzerland.  This
 Framework Agreement is a practical expression of the progress
 made in technical and scientific cooperation between the
 Community and Switzerland and will lead to closer interaction
 between the scientific policies of the Community and the Swiss
 Confederation.
 Mr De Clercq is to have talks with Mr Kurt FURGLER, Federal
 Councillor of the Swiss Confederation, and will take part in a
 working session to discuss the following : international economic
 and trade questions, relations between the Community and EFTA, in
 particular the implementation of the Luxembourg Declaration of
 April 1984, all bilateral problems between the Community and
 Switzerland and the negotiations currently in progress for
 adapting the EEC-Switzerland Agreement as a result of
 enlargement.
 The rules of origin.
 One of the annexes to the 1972 Agreement sets out the rules
 governing origin.  They define which products will qualify for
 preferential treatment and ensure that goods do not enter the
 free trade zone through the country with the lowest external
 tariff.  They encourage joint production between the Community
 and Switzerland of industrial products by providing a system of
 bilateral cumulation.  This is closely in line with the economic
 thought behind the free trade agreement which was to promote
 economic integration within Western Europe.  In this light, a
 simplification of the rules was introduced in 1983 for
 engineering products.
                                                            ./.
           
                               - 2 -
 Beyond the Agreement
 In the past decade, cooperation has gone well beyond the original
 scope of the agreements.  In a pragmatic way a totally new type
 of relationship between the Community and Switzerland has been
 established within which both sides can deal with any problem of
 mutual interest.  Contacts at political level have also
 intensified.  In the recent past Commission President Gaston E.
 Thorn has visited Switzerland and Mr Kurt Furgler, Federal
 Counsellor and Head of the Federal Department for Public Economic
 Questions has visited the Commission.  Frequent exchanges of
 visits at ministerial level, as well as the regular meetings of
 the Joint Committee set up by the Agreement, have consolidated
 the close relationship which exists between the Community and
 Switzerland and provided an impetus for further development.
 Among the many areas of cooperation are :
 STEEL
 Switzerland has had formal links with the European Coal and Steel
 Community since 1956 when an agreement providing for
 consultations between the two parties was signed.
 WATCH PRODUCTS
 An agreement providing for regular consultations between the two
 partners was signed on 30 June 1967 and came into force on 1
 January 1968.  These consultations take place within the
 framework of a separate joint commission.  A complementary
 agreement was signed on 22 July 1972 and came into force in
 January 1973.  This agreement regulates notably the use of the
 term "Swiss made".
 ENVIRONMENT
 An agreement was signed in 1975 providing for regular exchanges
 of information on matters affecting the environment.
 SCIENCE AND TECHNOLOGY
 Switzerland is a regular participant in the Community's
 Cooperation in Scientific and Technical Research programme
 (COST).  Among the many areas of cooperation are informatics,
 telecommunications, oceanography, metallurgy, environment and
 meteorology.
 Switzerland also participates in the Community's Joint European
 Torus (JET) project at Culham in the United Kingdom.  This
 project is aimed at preparing the way for a prototype nuclear
 fusion reactor.
 The Community's data-transmission system EURONET was
 interconnected with the Swiss network in 1981.
 A recent development in Science and Technology cooperation is
 that Switzerland will participate in three Community research
 projects in the medical field and following an agreement
 concluded in July 1984 between Euratom and Switzerland the two
 sides have agreed to cooperate in research into the handling of
 highly radio-active material.
                                                       ./.
           
                               - 3 -
 INSURANCE
 An agreement was initialled in 1982 by the Commission and the
 Swiss authorities providing for freedom of establishment for
 companies offering direct non-life insurance.  A proposal for its
 conclusion was sent to the EC Council of Ministers in 1983.
 ECONOMIC AND MONETARY QUESTIONS
 Regular discussions take place between Commission and Swiss
 experts on monetary and economic questions.
 TRANSIT
 Various agreements have been negotiated over the years covering
 the problems involved in north-south transit through
 Switzerland.  These agreements cover the simplification of
 customs formalities as well as the establishment of through rail
 tariffs for ECSC products.
 TRANSPORT
 The Commission has on several occasions expressed its concern at
 the Swiss decision, approved by a referendum in 1984, to impose a
 road tax on heavy vehicles and a general motorway tax which, in
 the Commission's view, are contrary to the spirit of the free
 trade agreement and will create additional barriers and
 formalities at the Swiss frontier.  The Commission has placed
 particular emphasis on the need to avoid any potential
 discrimination in the implementation of these measures which came
 into force on 1 January 1985.
 Trade structure and development
 Over the eleven years of the agreement trade has considerably
 expanded on both sides.  Swiss exports to the Community increased
 from 4180 MECU in 1973 to 18571 MECU in 1983 representing 49% of
 her total exports.  Swiss imports from the Community increased
 over the same period from 7183 MECU to 23278 MECU representing
 66% of her total imports.
 In 1982, 36% of imports from Switzerland were machinery,
 transport equipement and other manufactured goods with chemicals
 accounting for a further 16%.  Basic manufactures, notably
 textiles, mineral manufactures, non-ferrous metals and metal
 manufactures accounted for 17%.  Community exports to Switzerland
 were made up of machinery, transport equipment and other
 manufactured goods (43%), chemicals (11%) and basic manufactures,
 mainly textiles, mineral manufactures, iron and steel,  non-
 ferrous metals and metal manufactures (23%).
 Trade between Switzerland and the Community (Million Ecu)(*)
               1973   1975   1979   1981   1982   1983   1984
 EC-Imports    4180   5751  12365  16366  17379  18571   21444
 EX-Exports    7183   8344  17757  21737  23017  23278   26313
 Balance       3003   2593   5392   5371   5638   4706    4869
 Source EUROSTAT
 (*) The exchange rate ECU/dollar varies daily as the various EC
     currencies which make up the ECU vary against the dollar. One
     ECU was worth US$ 1.2 in 1973, US$ 1.37 in 1979, US$ 1.12 in
 1981, US$ 0.98 in 1982, US$ 0.89 in 1983 and US$ 0.83 in
1984.

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