March 16, 1999

Dear Representative Chen：

I have the honor to refer to the results of the recent discussi-
ons between representatives of the American Institute in Taiwan
(AIT) and the Taipei Economic and Cultural Representative Office
in the United States (TECRO) on the subject of a mutual recogni-
tion agreement for equipment subject to Electro-Magnetic Compat-
ibility (EMC) regulations. The agreement, as embodied in this
letter and in your return letter, shall become effective upon
AIT's receipt of your return letter.

AIT confirms that the equipment covered by this letter is the
equipment subject to the EMC regulations of the U.S. Federal Co-
mmunications Commission (FCC) .AIT further confirms that the Un-
ited States will apply the general provisions, Appendix A, and
Phase I Procedures in Appendix B of the Asia Pacific Economic
Cooperation Mutual Recognition Arrangement for Telecommunicatio-
ns Equipment (APEC Telecom MRA) to equipment from Chinese Taip-
ei covered by this letter. The APEC Telecom MRA is attached for
reference to this letter.

In particular, the United States will apply the Phase I Procedu-
res in Appendix B for the recognition of testing laboratories
designated by Chinese Taipei as Conformity Assessment Bodies
(CABs) and for the acceptance of test reports from recognized
Chinese Taipei CABs for conformity assessment of the equipment
covered by this letter with the EMC regulation of the FCC. Atta-
ched is the list of Technical Regulations for which the FCC will
accept test reports in accordance with the preceding paragraph,
if required, from recognized Chinese Taipei CABs. Any modific-
ations to this list shall be notified to the Taipei Economic and
Cultural Representative Office in the United States (TECRO) and
the Bureau of Standards, Metrology and Inspection (BSMI) .

I also am pleased to inform you that the National Institute of
Standards and Technology (NIST) is the Designating Authority for
the United States. NIST may designate testing laboratories in
accordance with the general provisions and Appendix A of the AP-
EC Telecom MRA for recognition as CABs by Chinese Taipei with
respect to the EMC regulations of the BSMI.

The United States understands that it will be necessary to exch-
ange information on the technical criteria for accrediting CABs.
In addition, the FCC is the point of contact for the United Sta-
tes for the equipment covered by this letter. AIT further confi-
rms that the United States will undertake steps with Chinese Ta-
ipei for mutually satisfactory implementation of the Phase II
Procedures in Appendix C of the APEC Telecom MRA with respect to
the equipment covered by this letter with the goal of beginning
such implementation as early as possible after completion of ne-
cessary domestic procedures.

Notwithstanding the exchange of these letters, the United States
notes its position that all phenomena, such as EMC, which can
cause harmful interference to telecommunications, are subject to
the APEC Telecom MRA.

Sincerely

Richard Bush
Chairman of the Board and Managing Director

Attachments：APEC Telecom MRA
Annex I List of Technical Regulations (omitted)

March 16, 1999
Dear Mr. Bush：

I acknowledge receipt of your letter of March 16, 1999 which re-
flects the results of the recent discussions between representa-
tives of the Taipei Economic and Cultural Representative Office
(TECRO) and the American Institute in Taiwan (AIT) on the subj-
ect of a mutual recognition agreement for equipment subject to
Electro-Magnetic Compatibility (EMC) regulations. The agreeme-
nt, as embodied in your letter and in this return letter, shall
become effective upon AIT's receipt of this letter.

TECRO confirms that the equipment covered by this letter is the
equipment subject to the EMC regulations of the Bureau of Stand-
ards, Metrology and Inspection (BSMI) , which is also subject to
the EMC regulations of the U.S. Federal Communications Commissi-
on (FCC) . TECRO further confirms that Chinese Taipei will apply
the general provisions, Appendix A, and Phase I Procedures in
Appendix B of the Asia Pacific Economic Cooperation Mutual Reco-
gnition Arrangement for Conformity Assessment of Telecommunicat-
ions Equipment (APEC Telecom MRA) to equipment from the United
States covered by this letter. The APEC Telecom MRA is attached
for reference to this letter.

In particular, Chinese Taipei will apply the Phase I Procedures
in Appendix B for the recognition of testing laboratories desig-
nated by the United States as Conformity Assessment Bodies (CABs
) and for the acceptance of test reports from recognized U.S.
CABs for conformity assessment of the equipment covered by this
letter with the EMC regulation of the BSMI. Attached is the list
of EMC regulations and products for which the BSMI will accept
test reports in accordance with the preceding paragraph, if req-
uired, from recognized U.S. CABs. Any modifications to this list
shall be notified to the American Institute in Taiwan (AIT) and
the FCC.

I also am pleased to inform you that BSMI is the Designating Au-
thority for Chinese Taipei for purposes of this letter. BSMI may
designate testing laboratories in accordance with the general
provisions and Appendix A of the APEC Telecom MRA for recogniti-
on as CABs by the United States with respect to the EMC regulat-
ions of the FCC. Chinese Taipei understands that it will be nec-
essary to exchange information on the technical criteria for ac-
crediting CABs. In addition, BSMI is the contact point for Chin-
ese Taipei for the equipment covered by this letter.

TECRO further confirms that the Chinese Taipei will undertake
steps with the United States for mutually satisfactory implemen-
tation of the Phase II Procedures in Appendix C of the APEC Tel-
ecom MRA with respect to the equipment covered by this letter
with the goal of beginning such implementation as early as poss-
ible after completion of necessary domestic procedures.

The exchange of these letters is to achieve a mutual recognition
agreement between Chinese Taipei and the United States for equi-
pment covered by this letter, and without further explicit agre-
ement, reference to the APEC Telecom MRA herein should not in
any way be interpreted as a reflection of Chinese Taipei's posi-
tion regarding the scope of equipment covered by the APEC Telec-
om MRA.

Sincerely

Stephen S.F Chen
Representative,
Taipei Economic and Cultural Representative Office

Attachments：APEC Telecom MRA
BSMI EMC regulations and product list (omitted)