Representatives of the Australian Meat and Livestock Corporation
(AMLC), the Australian Commerce and Industry Office (ACTO) and
the Council of Agriculture (COA), Board of Foreign Trade and ot-
her relevant agencies met in Taipei on 12 September 1991 to dis-
cuss the issue of access for Australian beef to the Taiwan mark-
et.
Both sides noted that imports of Australian shin/shank, thin fl-
ank, brisket and intercostal beef (hereafter referred to as shi-
nshank) had averaged approximately 1,000 tonnes per month for t-
he first 8 months of 1991 which is less than for the same period
in 1990. If shipments continued at this rate, total imports for
the whole of 1991 would be approximately 12,000 tonnes.
Both sides noted the rising prices for domestic live beef cattle
and agreed on measures to be taken if these prices fell substan-
tially.
Both sides agreed that no action would be required if the on fa-
rm price for live beef cattle remained at NT$85/kg or above.
Both sides agreed that if the on-farm price for live beef cattle
fell from a base price of NT$85/kg or less by 10% or more in one
month, or a total of 10% or more over three consecutive month,
the COA and relevant agencies would investigate the cause of the
fall. ACTO would be available for consultation or to provide fu-
rther information during this time as appropriate.
If the COA found clear evidence that the level or price of shin-
shank imports from Australia was the major cause of such a fall
in prices, it would provide a written report to ACIO of its fin-
dings. Consultations with the AMLC would take place within 14 d-
ays of the delivery of the report to ACIO.
If during these consultations, both sides agreed that the fall
in prices was directly attributable to the level or price of sh-
in\shank imported from Australia, then the AMLC would take appr-
opriate action to achieve an upturn in domestic beef cattle pri-
ces within 3 months of the date of the consultations.
Bothe sides would remain in close contact during this three mon-
th period to monitor the efficacy of the measures taken by the
AMLC and on-going developments in the market.
The on-farm live cattle price referred to in this understanding
will be based on the average prices paid by the regional beef c-
ooperatives to farmers and notified to COA. COA will provide th-
ese prices to ACIO on a fortnightly basis.
The measures outlined in this understanding are transitional in
nature and will conclude on 31 December 1992 at the end of the
COA's 3-year adjustment plan for the domestic beef industry.
[Signed]
Date: Sep. 12,1991
Spencer S.C. Chyr
Director
Animal Industry Department
Council of Agriculture
[Signed]
Date: Sep. 12,1991
Bruce Standen
Managing Director
Australian Meat and
Livestock Corporation
Witnessed by:
[Signed]
Date: Sep. 12,1991
Yi-fu Lin
Deputy Director
Board of Foreign Trade
Ministry of Economic Affairs
[Signed]
Date: Sep. 12,1991
Robert J O'Donovan
Representative
Australian Commerce
and Industry Office
*****************************************
September 25,1991
Dr. Bruce J. Standen
Managing Director
Australian Meat and
Livestock Corporation
Aetna Life Tower
Hyde Park Square
Box 4129 G.P.O.
Sydney 2001
Australia

Dear Dr. Standen:
Pursuant to the beef consultation in Taipei on 12 September 1991
and based on our mutual understanding, I would like to reiterate
our positions which I have stated at discussion that if the AML-
C's measures fail to achieve an upturn in domestic beef prices
within three months from the date of consultations, then as you
aware, our side will take further actions to upturn the domestic
cattle price.
As we have agreed before signing the Letter of Understanding Be-
tween the Australian Meat and Livestock Corporation and Council
of Agriculture, that the exchange of this letter will constitute
as a supplementary document of our agreement.
I take this opportunity to renew to you the assurances of my hi-
ghest consideration.
With best regards,
Sincerely yours,
[Signed]
SpencerS.C. Chyr
Director
Animal Industry Department
cc: Australian Commerce and Industry
Offce, Taipei Office
Ministry of Foreign Affairs
Ministry of Finance
Board of Foreign Trade, MOEA
*************************************
23 October, 1991
Dr. Spencer S.C. Chyr
Director
Animal Industry Department
Council of Agriculture
37 Nanhai Road
TAIPEI, TAIWAN, 10728

Dear Dr. Chyr,
Thank you for your letter of 25 September, 1991.
During the talks between AMLC and COA in Taipei on 12 September,
1991, both sides agreed on measures to be taken if domestic live
beef cattle prices fell substantially.
I would like to confirm the AMLC's commitment to the full and f-
aithful implementation of the Letter of Understanding we signed
at the conclusion of those talks.
In summary, if during consultations COA and AMLC agreed that a
substantial fall in the on-farm price for live beef cattle (on
the basis of a set formula) was directly attributable to the le-
vel or price of shin/shank beef imported from Australia, AMlC u-
ndertook to take appropriate action to achieve an upturn in dom-
estic beef cattle prices within 3 months of the date of the con-
sultations.
Although our underaking is clearly made in the Letter of Unders-
tanding between both sides, in a spirit of understanding and co-
operation AMLC re-iterates and confirms our undertaking that ap-
propriate action will be taken should the above circumstances o-
ccur.
I have noted your re-statement of the position that the Taiwan
side reserves the right to take unilateral action under certain
circumstances. As stated during our discussions, I am confident
that any remedial action taken by the AMLC pursuant to the Lett-
er of Understanding would be effective and that the question of
further action by the COA will not therefore arise.
I look forward to fruitful co-operation with the COA in the imp-
lementation of the understanding over the coming months.
Yours sincerely,
[Signed]
B.J. STANDEN
MANAGING DIRECTOR