A measurement of the cross section of tau-pair production 
in untagged two-photon collisions at LEP is presented.
The channel $\tau^+ \rightarrow \pi^+\pi^0 \overline{\nu}_\tau$, 
$\tau^- \rightarrow e^- \nu_\tau \overline{\nu}_e$ is 
studied using data collected with the L3 detector at centre-of-mass 
energies $\sqrt{s} = 189 - 209$ GeV, corresponding to a 
total luminosity of 644.1 pb$^{-1}$. 
The obtained results are in good agreement with 
$O(\alpha^4)$ QED predictions.