Ⅰ Note from Mr. Anthony M. Solomon, American Assistant Secreta-
ry for Economic Affairs, Department of State, to Mr. Chow Shu
-kai, Chinese Ambassador to the United States.
April 22,1966
Excellency:
I have the honor to refer to the recent discussions held in Was-
hington, D.C. between representatives of our two governments co-
ncerning the cotton textile agreement between our two governmen-
ts affected by exchange of notes at Taipei on October 19, 1963,
as amended. In accordance with these discussions, the Governmen-
t of the UNited States of America understands that the agreement
, as amended, shall, insofar as concerns the third and fourth a-
greement years, be revised retroactively to October 1, 1965, to
read as follows:
(1) The Government of the Republic of China shall limit its exp-
orts to the United States in all categories of cotton texti-
les for the third agreement year beginning October 1, 1965
to an aggregate limit of 58,432,500 square yards equivalent.
(2) Within this overall ceiling, the following group ceilings s-
hall apply for the third agreement year:
(a) Apparel categories
(Categories 39-63) 21,719,250 syds.
(b) All other categories
(Categories 1-38
and 64) 36,713,250 syds.
(3) Within the applicable group ceilings the following specific
ceilings shall apply for the third agreement year.
(a) Apparel categories
Categories 41-42 85,664 doz.
Category 44 16,538 doz.
Category 45 9,923 doz.
Category 46 248,063 doz.
Category 47 27,563 doz.
Category 50 134,505 doz.
Category 51 216,090 doz.
Category 52 137,813 doz.
Category 53 11,025 doz.
Category 54 23,153 doz.
Category 57 110,250 doz.
Category 59 27,563 doz.
Category 60 20,837 doz.
Category 62 25,900 1bs.
Category 63 137,813 1bs.
(b) All other categories
Category 5 994,510 syds*
Category 6 630,000 syds
Category 9 18,742,500 syds
Category 15 551,250 syds
Category 18-19 1,033,594 syds
Category 22-23 2,050,000 syds
Category 24-25 2,000,000 syds
Category 26 3,373,650 of
which not
more than
2,000,000 syds
shall be in
duck
Category 28 937,125 pcs
Category 30 1,653,750 pcs
Category 32 246,500 doz.
Category 34 111,750 pcs
Category 35 74,350 pcs
Category 64 130,400 1bs.
* Except that exports in Category 5 may amount to 75 percent of
the total amounts permitted to be exported in Categories 5 and
6 provided the total exports in these two categories do not e-
xceed the total limits provided for these two categories.
(4) During the third and fourth agreement years and within the
applicable group ceilings, the specific ceilings specified
in paragraph 3, other than these for duck and for categories
5, 6, 45, 46, 50, 51, 52, 53, 54, and 60, may be exceeded by
not more than 5 percent.
(5) Within the group ceilings for each group the square yard eq-
uivalent of any shortfalls occurring in exports in the cate-
gries given specific ceilings may be used in any category n-
ot given a specific ceiling. In the event the Government of
the Republic of China desires to export during the third ag-
reement year more than 385,875 square yards equivalent in a-
ny category not given a specific ceiling, it shall request
consultations with the Government of the United States on t-
his question. The United States Government shall agree to e-
nter into such consultations and, during the course thereof,
shall provide the Government of the Republic of China with
information on the condition of the United States market in
the category in question. Until agreement is reached, the
Government of the Republic of China shall limit its exports
in the category in question during the third agreement year
at an annual level not in excess of 385,875 square yards eq-
uivalent.
(6) The limitations on exports established in paragraphs 1, 2, 3
, 5 and 8 shall, for the fourth agreement year, be increased
by five percent over the corresponding limitations for the
preceding year.
(7) During the third and fourth agreement years, annual exports
from the Republic of China to the United States shall be sp-
aced as evenly as practicable, taking into account seasonal
factors.
(8) The Government of the Republic of China shall limit its exp-
orts of items made of corduroy in categories 46, 50 and 51,
to a total annual ceiling of no more than 4,410,000 square
yards for the third agreement year. In the event concentrat-
ion in exports from the Republic of China to the United Sta-
tes of America of items of apparel made up of corduroy in c-
ategories other than 46, 50 and 51 or items of apparel made
up of other cotton fabrics causes or threatens to cause mar-
ket disruption in the United States, the Government of the
United States may call for consultations with the Government
of the Republic of China in order to reach a mutually satis-
factory solution to the problem. The Government of the Repu-
blic of China shall agree to enter into such consultation a-
nd, during the course thereof, the Government of the Republ-
ic of China shall limit its exports of the items in question
at an annual level of 105 percent of its exports during the
twelve-month period immediately precding the month in which
consultations are requested.
(9) Each Government agrees to supply promptly any available sta-
tistical data requested by the other Government. In particu-
lar, the Governments agree to exchange monthly data on expo-
rts and imports of cotton textiles from the Republic of Chi-
na to the United States. In the implementation of this agre-
ement, the system of categories and the factors for convers-
ion into square yard equivalents set forth in the annex to
the agreement of October 19,1963, shall apply.
(10) During the term of this agreement, the United states Gover-
nment shall not invoke the procedures of Article 3 of Long-
Term Arrangement Regarding International Trade in Cotton T-
extiles done at Geneva on February 9,1962 to limit importa-
tion of cotton textiles from the Republic of China into the
United States.
(11) The Government agree to consult on any question arising in
the implementation of this agreement. In particular, in the
event that, because of a return to normalcy of market cond-
itions in the United States, the Government of the United
States relaxes measures it has taken under the Long-Term A-
rrangements for any of the categories, consultation may be
requested by the Government of the Republic of China to re-
move or modify ceilings established for such categories by
this agreement.
(12) If the Government of the Republic of China considers that
as a result of limits and ceilings specified in this agree-
ment the Republic of China is being placed in an inequitab-
le position vis-a-vis third country, the Government of the
Republic of China may request consultations with the United
States Government with a view to taking appropriate remedi-
al action such as a reasonable modification of this agreem-
ent.
(13) The various adjustments to the export limitations agreed to
in the agreement of October 19,1963 and subsequent amendme-
nts together with the adjustments agreed to as a result of
the overshipment of certain cotton textiles during the sce-
ond agreement year based on statistics available as of Jan-
uary 14,1966, are combined as follows:
(a) The export limitations specified in paragraphs 1, 2, 3, a-
nd 6 as may be modified pursuant to paragraph 4 shall be
reduced as follows:
3rd Agree- 4th Agree-
ment Year ment Year
5 (syds) 431,716 59,531
6 (syds) 630,000 6,935
9 (syds) 376,596 322,796
15 (syds) 11,039 9,462
18/19 (syds) 49,683 32,229
22/23 (syds) 31,669 27,146
26 (syds) 67,785 58,101
Duck (syds) 725,189 NONE
41/42 (doz) 2,800 1,300
43 (doz)* 1,400 700
45 (doz) 300 200
46 (doz) 44,464 1,200
50 (doz) 19,006 500
51 (doz) 200 100
54 (doz) 1,962
60 (doz) 6,395 1,800
62 (1bs) 3,900 2,900
63 (1bs) 11,900 5,900
64 (syds)** 91,300 45,700
* To be deducted from group ceiling for apparel
** To be deducted from group ceiling for “all other categories
.”
(b) During the third agreement year only. up to 100,000 1bs.
of sweatshirts may be exported, within the applicable gro-
up ceiling. in excess of the applicable limitation for ca-
tegory 62.
(14) In addition to the adjustments indicated in paragraph 13,
and based on the statistics available as of January 14, 196
6. the Government of the United States of America charged
against the levels of exports permitted under the agreement
for the third agreement year the following quantities in t-
he categories indicated:
Category 9 1,880,189 syds.
Category 15 162,699 syds.
Category 19 179 syds.
Category 26 (excluding 166,000 syds.
Category duck)
Category 41/42 1,368 doz.
Category 43 6,138 doz.
Category 44 66 doz.
Category 49 1,911 doz.
Category 55 3,473 doz.
Category 62 772 1bs.
Category 63 34,089 1ds.
These amounts are attributable to exports before October 1,1965
which were in excess of the levels permitted for the second agr-
eement year. When the control of trade is shifted to an export
control basis exercised by the Government of the Republic of Ch-
ina, the Government of the Republic of China need not count the-
se quantities as exports during the third agreement year.
(15) The details of shifting the implementation of this agreeme-
nt to an export control basis, including the timing of such
a shift, and any additional adjustment in the export limit-
ations which may accompany this shift will be the subject
of mutually satisfactory administrative adjustments.
(16) This agreement shall continue in force through September 30
,1967; provided that either Government may propose revisio-
ns in the terms of the agreement no later than 90 days pri-
or to the beginning of a new agreement year; and provided
further that either Government may terminate this agreement
effective at the beginning of a new agreement year by writ-
ten notice to the other Government given at least 90 days
prior to the beginning of such new agreement year.
I shall appreciate receiving your Excellency's confirmation of
the above understanding. This note and your Excellency's note of
confirmation on behalf of the Government of the Republic of Chi-
na shall constitute, insofar as concerns the third and fourth a-
greement years, a revision of the agreement between our two gov-
ernments.
Accept, your Excellency, the renewed assurances of my highest c-
onsideration.
(Signed)
Anthony M. Solomon
His Excellency
Chow Shu-kai,
Chinese Ambassador.
Ⅱ Note form Mr. Chow Shu kai, Chinese Ambassador to the United
States, to Mr. Dean Rusk. American Secretary of State.
April 22 1966
Sir:
I have the honor to acknowledge receipt of your note of today's
date, which reads as follows:
“I have the honor to refer to the recent discussions held in W-
ashington, D.C. between representatives of our two governments
concerning the cotton textile agreement between our two governm-
ents affected by exchange of notes at Taipei on October 19,1963,
as amended. In accordance with these discussions, the Government
of the United States of America understands that the agreement,
as amended, shall, insofar as concerns the third and fourth agr-
eement years, be revised retroactively to October 1, 1965, to r-
ead as follows:
(1) The Government of the Republic of China shall limit its exp-
orts to the United States in all cagegories of cotton texti-
les for the third agreement year beginning October 1, 19
65 to an aggregate limit of 58,432,500 square yards equival-
ent.
(2) Within this overall ceiling, the following group ceilings s-
hall apply for the third agreement year:
(a) Apparel categories
(Categories 39-63) 21,719,250 syds.
(b) All other Categories
(Categories 1-38
and 64) 36,713,250 syds.
(3) Within the applicable group ceilings the following specific
ceilings shall apply for the third agreement year.
(a) Apparel categories
Categories 41-42 85,664 doz.
Category 44 16,538 doz.
Category 45 9,923 doz.
Category 46 248,063 doz.
Category 47 27,563 doz.
Category 50 134,505 doz.
Category 51 216,090 doz.
Category 52 137,813 doz.
Category 53 11,025 doz.
Category 54 23,153 doz.
Category 57 110,250 doz.
Category 59 27,563 doz.
Category 60 20,837 doz.
Category 62 25,900 1bs.
Category 63 137,813 1bs.
(b) All other categories
Category 5 994,510 syds*
Category 6 630,000 syds
Category 9 18,742,500 syds
Category 15 551,250 syds
Category 18-19 1,033,594 syds
Category 22-23 2,050,000 syds
Category 24-25 2,000,000 syds
Category 26 3,373,650 of
which not
more than
2,000,000 syds
shall be in
duck
Category 28 937,125 pcs
Category 30 1,653,750 pcs
Category 32 246,500 doz.
Category 34 111,750 pcs
Category 35 74,350 pcs
Category 64 130,400 1bs.
* Except that exports in Category 5 may amount to 75 percent of
the total amounts permitted to be exported in Categories 5 and
6 provided the total exports in these two categories do not e-
xceed the total limits provided for these two categories.
(4) During the third and fourth agreement years and within the
applicable group ceilings, the specific ceilings specified
in paragraph 3, other than these for duck and for categories
5, 6, 45, 46, 50, 51, 52, 53, 54, and 60, may be exceeded by
not more than 5 percent.
(5) Within the group ceilings for each group the square yard eq-
uivalent of any shortfalls occurring in the categories given
specific ceilings may be used in any category not given a s-
pceific ceiling. In the event the Government of the Repubic
of China desires to export during the third agreement year
more than 385,875 square yards equivalent in any category
not given a specific ceiling, it shall request consultations
with the Government of the United States on this question.
The United States Government shall agree to enter into such
consultations and, during the course thereof, shall provide
the Government of the Republic of China with information on
tne condition of United States market in the category in qu-
estion. Until agreement is reached, the Goverment of the Re-
public of China shall limit its exports in the category in
question during the third agreement year at an annual level
not in excess of 385,875 square yards equivalent.
(6) The limitations on exports established in paragraphs 1, 2, 3
, 5 and 8 shall, for the fourth agreement year, be increased
by five percent over the corresponding limitations for the
preceding year.
(7) During the third and fourth agreement years, annual exports
from the Republic of China to the United States shall be sp-
aced as evenly as practicable, taking into account seasonal
factors.
(8) The Government of the Republic of China shall limit its exp-
orts of items made of corduroy in categories 46, 50 and 51,
to a total annual ceiling of no more than 4,410,000 square
yards for the third agreement year. In the event concentrat-
ion in exports from the Republic of China to the United Sta-
tes of America of items of apparel made up of corduroy in c-
ategories other than 46, 50 and 51 or items of apparel made
up of other cotton fabrics causes or threatens to cause mar-
ket disruption in the United States, the Government of the
United States may call for consultations with the Government
of the Republic of China in order to reach a mutually satis-
factory solution to the problem. The Government of the Repu-
blic of China shall agree to enter into such consultation a-
nd, during the course thereof, the Government of the Republ-
ic of China shall limit its exports of the items in question
at an annual level of 105 percent of its exports during the
twelve-month period immediately preceding the month in which
consultations are requested
(9) Each Government agrees to supply promptly any available sta-
tistical data requested by the other Government. In particu-
lar, the Governments agree to exchange monthly data on expo-
rts and imports of cotton textiles from the Republic of Chi-
na to the United States. In the implementation of this agre-
ement, the system of categories and the factors for convers-
ion into square yard equivalents set forth in the annex to
the agreement of October 19,1963, shall apply.
(10) During the term of this agreement, the United States Gover-
nment shall not invoke the procedures of Article 3 of the
Long-Term Arrangements Regarding International Trade in Co-
tton Textiles done at Geneva on February 9, 1962 to limit
importation of cotton textiles from the Republic of China
into the United States.
(11) The Governments agree to consult on any question arising in
the implementation of this agreement. In particular, in the
event that, because of a return to normalcy of market cond-
itions in the United States the Government of the United s-
tates relaxes measures it has taken under the Long-Term Ar-
rangements for any of the categories, consultation may be
requested by the Government of the Republic of China to re-
move or modify ceilings established for such categories by
this agreement.
(12) If the Government of the Republic of China considers that
as a result of limits and ceilings specified in this agree-
ment the Republic of China is being placed in an inequitab-
le position vis-a-vis a third country, the Government of t-
he Republic of China may request consultations with the Un-
ited States Government with a view to taking appropriate r-
emedial action such as a reasonable modification of this a-
greement.
(13) The various adjustments to the export limitations agreed to
in the agreement of October 19, 1963 and subsequent amendm-
ents together with the adjustments agreed to as a result
of the overshipment of certain cotton textiles during the
second agreement year based on statistics available as of
January 14, 1966, are combined as follows:
(a) The export limitations specified in paragraphs 1, 2, 3, a-
nd 6 as may be modified pursuant to paragraph 4 shall be
reduced as follows:
3rd Agree- 4th Agree-
ment Year ment Year
5 (syds) 431,716 59,531
6 (syds) 630,000 6,935
9 (syds) 376,596 322,796
15 (syds) 11,039 9,462
18/19 (syds) 49,683 32,229
22/23 (syds) 31,669 27,146
26 (syds) 67,785 58,101
Duck (syds) 725,189 NONE
41/42 (doz) 2,800 1,300
43 (doz)* 1,400 700
45 (doz) 300 200
46 (doz) 44,464 1,200
50 (doz) 19,006 500
51 (doz) 200 100
54 (doz) 1,962
60 (doz) 6,395 1,800
62 (1bs) 3,900 2,900
63 (1bs) 11,900 5,900
64 (syds)** 91,300 45,700
* To be deducted from group ceiling for apparel
** To be deducted from group ceiling for “all other categories.
”
(b) During the third agreement year only, up to 100,000 1bs.
of sweatshirts may be exported, within the applicable gro-
up ceiling, in excess of the applicable limitation for ca-
tegory 62.
(14) In addition to the adjustments indicated in paragraph 13,
and based on the statistics available as of January 14, 196
6 the Government of the United States of America charged a-
gainst the levels of exports permitted under the agreement
for the third agreement year the following quantities in t-
he categories indicated:
Category 9 1,880,189 syds.
Category 15 162,699 syds.
Category 19 179 syds.
Category 26 (excluding 166,000 syds.
Category duck)
Category 41/42 1,368 doz.
Category 43 6,138 doz.
Category 44 66 doz.
Category 49 1,911 doz.
Category 55 3,473 doz.
Category 62 772 1bs.
Category 63 34,089 1ds.
These amounts are attributable to exports before October 1, 1965
which were in excess of the levels permitted for the second agr-
eement year. When the control of trade is shifted to an export
control basis exercised by the Government of the Republic of Ch-
ina, the Government of the Republic of China need not count the-
se quantities as exports during the third agreement year.
(15) The details of shifting the implementation of this agreeme-
nt to an export control basis, including the timing of such
a shift, and any additional adjustments in the export limi-
tations which may accompany this shift will be the subject
of mutually satisfactory administrative adjustments.
(16) This agreement shall continue in force through September 30
,1967; provided that either Government may propose revisio-
ns in the terms of the agreement no later than 90 days pri-
or to the beginning of a new agreement year; and provided
further that either Government may terminate this agreement
effective at the beginning of a new agreement year by writ-
ten notice to the other Government given at least 90 days
prior to the beginning of such new agreement year.
I shall appreciate receiving your Excellency's confirmation of
the above understanding. This note and your Excellency's note of
confirmation on behalf of the Government of the Republic of Chi-
na shall constitute, insofar as concerns the third and fourth a-
greement years, a revision of the agrement between our two gove-
rnments“.
In reply, I have the honor to state that the Government of the
Republic of China concurs in the proposals quoted above and agr-
ees that your note and the present reply shall be regarded as c-
onstituting an agreement between our two Government on this mat-
ter.
Accept, Sir, the renewed assurances of my highest consideration.
(Signed)
Chow Shu-kai
Ambassador of China
The Honorable Dean Rusk
Secretary of State
Department of State
Washington, D.C.