Ⅰ Notes from Mr. Solomon for the secretary of State, to H.E. C-
how Shu-kai, Chinese Ambassador
October 12,1967
Excellency:
I have the honor to refer to the decision of the Cotton Textiles
Committee of the General Agreement on Tariffs and Trade approvi-
ng a Protocol to extend through September 30,1970 the Long-Term
Arrangement regarding International Trade in Cotton Textiles, d-
one in Geneva on September 9,1962 (hereinafter referred to as “
the Long-Term Arrangement”). I also refer to recent discussions
between representatives of our two Governments and to the agree-
ment between our two Governments concerning exports of cotton t-
extiles from the Republic of China to the United States effected
by an exchange of notes dated October 19,1963, as amended. In c-
onfirm, on behalf of my Government, the understanding that the 1
963 agreement is superseded as of January 1, 1967 by the follow-
ing agreement. This understanding is based on our understanding
that the above-mentioned Protocol entered into force for our two
Governments on October 1, 1967.
1 This agreement shall extend through December 31,1970. During
the term of the agreement the Government of the Republic of C-
hina shall limit annual exports of cotton textiles to the Uni-
ted States to aggregate, group and specific limits at the lev-
els specified in the following paragraphs.
2 For the first agreement year, constituting the 12-month peri-
od beginning January 1,1967, the aggregate limit shall be 64,6
21,052 square yards equivalent.
3 Within the aggregate limit, the following group limits shall
apply for the first agreement year:
Group Ⅰ (Apparel categories- 24,340,278 square
Categories 39-63) yards
equivalent
Group Ⅱ (All other categori- 40,280,774 square
es-Categories 1-38 & yards
64) equivalent
4 Within the applicable group limit, the following specific lim-
its shall apply for the first agreement year:
A Apparel Categories
Categories 41-42 91,072 dozen
Category 44 17,582 dozen
Category 45 10,549 dozen
Category 46 263,722 dozen
Category 47 29,303 dozen
Category 142,996 dozen
Category 51 229,731 dozen
Category 52 146,512 dozen
Category 53 11,721 dozen
Category 54 24,615 dozen
Category 57 117,210 dozen
Category 59 29,303 dozen
Category 60 22,152 dozen
Category 62 27,535 lbs
Category 63 146,512 lbs
B All Other Categories
Category 5 1,057,288 syds.*
Category 6 669,769 syds.
Category 9 19,925,620 syds.
Category 15 586,048 syds.
Categories 18 & 19 1,098,840 syds.
Categories 22 & 23 2,179,406 syds.
Categories 24 & 25 2,126,250 syds.
Category 26 3,586,612 (of which not more than 2,216,
250 syds. may be in duck)
Category 28 996,281 pcs.
Category 30 1,758,143 pcs.
Category 32 252,060 doz.
Category 34 118,804 pcs.
Category 35 79,043 pcs.
Category 64 138,632 1bs.
* Except that exports in Category 5 may amount to 75％ of the t-
otal amounts permitted to be exported in Categories 5 & 6 provi-
ded the total exports in these two categories do not exceed the
total limits provided for these two categories.
5 Within the aggregate limit, the limit for Group Ⅱ may be exc-
eeded by not more than 10％ and the limit for Group I may be
exceeded by not more than 5％. Within the applicable Group li-
mit, as it may be adjusted under this provision specific limi-
ts may be exceeded by not more than 5％.
6
a. Within the applicable group limit for each group the square
yard equivalent of any shortfalls occurring in exports in t-
he categories given specific limits may be used in any cate-
gory not given a specific limit.
b. In the event the Government of the Republic of China desires
to export during any agreement year more than the consultat-
ion level specified herein in any category not given a spec-
ific limit it shall request consultation with the Government
of the United States on this question. For the first agreem-
ent year the consultation level shall be 405,169 square yar-
ds equivalent. 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 the condition of the United States market in
the category in question Until agreement is reached the Gov-
ernment of the Republic of China shall limit its exports in
the category in question to the consultation level.
7 In the succeeding twelve-month periods for which any limitati-
on is in force under paragraphs 2, 3, 4, 6 and 9 of this agre-
ement, the level of exports permitted under such limitation s-
hall be increased by five percent of the corresponding level
for the preceding twelve-month period, the latter level not to
include any adjustments under paragraphs 5 or 15.
8 The Government of the Republic of China shall use its best ef-
fprts to space exports to the United States as evenly as prac-
ticable, taking into account seasonal factors.
9 The Government of the Republic of China shall limit its expor-
ts of items made of corduroy in Categories 46, 50 and 51 to a
total annual limit of not more than 4,630,500 square yards for
the first agreement year. In the event concentration in expor-
ts from the Republic of China to the United States of America
of items of apparel made up of corduroy in Categories other t-
han 46, 50 and 51, or items of apparel made up of other cotton
fabrics causes or threatens to cause market disruption in the
United States, the Government of the United States of America
may call for consultations with the Government of the Republic
of China in order to reach a mutually satisfactory solution to
the problem. The Government of the Republic of China shall ag-
ree to enter into such consultation and during the course the-
reof, the Government of the Republic of China shall limit its
exports of the item in question at an annual level of 105 per-
cent of its exports during the twelve-month period immediately
preceding the month in which consultations are requested.
10 Each Government agrees to supply promptly any available stat-
istical data requested by the other Government. In particular
the Government agree to exchange monthly data on exports and
imports of cotton textiles from the Republic of China to the
United States. In the implementation of this agreement, the
system of categories and factors for conversion into square
yard equivalents set forth in the annex to this agreement sh-
all apply. In any situation where the determination of an ar-
ticle to be a cotton textile would be affected by whether the
criterion provided for in Article 9 of the Long-Term Arrange-
ment is used or the criterion provided for in paragraph 2 of
Annex E of the Long-Term Arrangement is used, the chief value
criterion used by the Government of the United States of Ame-
rica in accordance with paragraph 2 of Annex E shall apply.
11 During the term of this agreement, the United States Governm-
ent shall not invoke Article 3 of the Long-Term Arrangement
to limit imports of cotton textiles from the Republic of Chi-
na into the United States. The applicability of the Long-Term
Arrangement to trade in cotton textiles between the Republic
of China and the United States shall otherwise be unaffected
by this agreement.
12 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 condit-
ions in the United States, the Government of the United Stat-
es of America relaxes measures it has taken under the Long-T-
erm Arrangement for any of the categories, consultation may
be requested by the Government of the Republic of China to r-
emove or modify limits established for such categories by ag-
reement.
13 If the Government of the Republic of China considers that as
a result of limits specified in this agreement the Republic
of China is being placed in an inequitable position vis-a-vis
a third country, the Government of the Republic of China may
request consultation with a view to taking appropriate remed-
ial action such as a reasonable modification of this agreeme-
nt.
14 Mutually satisfactory administrative arrangements or adjustm-
ents may be made to resolve minor problems arising in the im-
plementation of this agreement including differences in poin-
ts of procedure or operation.
15
(a) For any agreement year subsequent to the first agreement y-
ear and immediately following a year of a shortfall (i.e.,
a year in which cotton textile exports from the Republic of
China were below the aggregate limit and any group and spe-
cific limits applicable to the category concerned) the Gov-
ernment of the Republic of China may permit exports to exc-
eed these limits by carryover in the following amounts and
manner:
(i) The carryover shall not exceed the amount of shortfall in
either the aggregate limit or any applicable group or sp-
ecific limit and shall not exceed either five percent of
the aggregate limit or five percent of the applicable gr-
oup limit in the year of the shortfall, and
(ii) in the case of shortfalls in the categories subject to s-
pecific limits the carryover shall be used in the same c-
ategory in which the shortfall occurred, and shall not e-
xceed five percent of the specific limit in the year of
the shortfall, and
(iii) in the case of shortfalls not attributable to categories
subject to specific limits, the carryover shall be used
in the same group in which the shortfall occurred and sh-
all not be used to exceed any applicable specific limit
except in accordance with the provisions of paragraph 5
and shall be subject to the provisions of paragraph 6 of
the agreement.
(b) The limits referred to in subparagraph (a) of this paragra-
ph are without any adjustments under this paragraph or par-
agraph 5.
(c) The carryover shall be in addition to the exports permitted
in paragraph 5 of this agreement.
16 Either Government may terminate this agreement effective at
the beginning of a new agreement year by written notice to t-
he other Government given at least ninety days prior to the
beginning of such new agreement year. Either Government may
at any time propose revisions in the terms of agreement.
If this understanding conforms with your Government's undertand-
ing, this note and your Excellency's note of confirmation on be-
half of the Government of the Republic of China shall constitute
an agreement between our two Governments.
Accept, Excellency, the renewed assurances of my highest consid-
eration.
(Signed)
Solomon
His Excellency
Chow Shu-kai,
Chinese Ambassador.
ANNEX A
Category Description Unit Conversion Fa-
Number ctor to Syds.
1 Cotton Yarn, carded, singles Lbs. 4.6
2 Cotton Yarn, carded, plied Lbs. 4.6
3 Cotton Yarn, combed, singles Lbs. 4.6
4 Cotton Yarn, combed, plied Lbs. 4.6
5 Gingham, carded Syds. Not required
6 Gingham, combed Syds. Not required
7 Velveteen Syds. Not required
8 Corduroy Syds. Not required
9 Sheeting, carded Syds. Not required
10 Sheeting, combed Syds. Not required
11 Lawns, carded Syds. Not required
12 Lawns, combed Syds. Not required
13 Voile, carded Syds. Not required
14 Voile, carded Syds. Not required
15 Poplin and Broadcloth, carded Syds. Not required
16 Poplin and Broadcloth, carded Syds. Not required
17 Typewriter ribbon cloth Syds. Not required
18 Printcloth, shirting type, 80 Syds. Not required
×80 type, carded
19 Printcloth, shirting type, o- Syds.
ther than 80×80 type, carded
20 Shirting, Jacquard or dobby, Syds. Not required
carded
21 Shirting, Jacquard or dobby, Syds. Not required
carded
22 Twill and sateen, carded Syds. Not required
23 Twill and sateen, combed Syds. Not required
24 Woven fabrics, n.e.s., yarn Syds. Not required
dyed, carded
25 Woven fabrics, n.e.s., yarn Syds. Not required
dyed, carded
26 Woven fabrics, n.e.s., other, Syds. Not required
carded
27 Woven fabrics, n.e.s., other, Syds. Not required
combed
28 Pillowcases, not ornamented, Number 1.084
carded
29 Pillowcases, not ornamented, Number 1.084
combed
30 Towels, dish Number .348
31 Towels, other Number .348
32 Handkerchiefs, whether or not Dozen 1.66
in the piece
33 Table damask and manufactures Lbs. 3.17
34 Sheets, carded Number 6.2
35 Sheets, combed Number 6.2
36 Bedspreads and quilts Number 6.9
37 Braided and woven elastic Lbs. 4.6
38 Fishing nets and fish neeti- Lbs. 4.6
ng
39 Gloves and mittens Dozen 3.527
40 Hose and half hose Doz.prs 4.6
41 T-shirts, all white, knit me- Dozen 7.234
n's and boys'
42 T-shirts, other knit Dozen 7.234
43 Shirt, knit, other than T-s- Dozen 7.234
hirts and sweatshirts
44 Sweaters and cardigans Dozen 36.8
45 Shirts, dress, not knit, me- Dozen 22.186
n's and boys'
46 Shirts, sport, not knit, me- Dozen 24.457
n's and boys'
47 Shirts, sport, not knit, me- Dozen 22.186
n's and boys'
48 Raincoats, 3/4 length or lo- Dozen 50.0
nger, not knit
49 Coats, other, not knit Dozen 32.5
50 Trousers, slacks and shorts Dozen 17.797
(outer) not knit, men's an-
d boys'
51 Trousers, slacks and shorts Dozen 17.797
(outer) not knit, women's,
girl's and infants'
52 Blouses, not knit Dozen 14.53
53 Dresses, (including unifor-m Dozen 45.3
s) not knit
54 Playsuits, sunsuits, washsu- Dozen 25.0
its creepers, rompers, etc.,
nor knit, n.e.s.
55 Dressing gowns, including b- Dozen 51.0
athrobes and beachrobes, lo-
unging gowns, housecoats, a-
nd dusters, not knit
56 Undershirts, knit, men's and Dozen 9.2
boys'
57 Briefs and undershorts, men' Dozen 11.25
s and boys'
58 Drawers, shorts and briefs, Dozen 5.0
knit, n.e.s.
59 All other underwear, not kn- Dozen 16.0
it
60 Pajamas and other nightwear Dozen 51.96
61 Brassieres and other body s- Dozen 4.75
upporting garments
62 Wearing apparel, knit, n.e.s Lbs. 4.6
.
63 Wearing apparel, not knit, n Lbs. 4.6
.e.s.
64 All other cotton textiles Lbs. 4.6
Ⅱ Notes from Mr. Chow-kai, Chinese ambassador to Mr. Dean Rusk,
Secretary of State of America.
Chinese Embassy
Washington
October 12,1967
Excellency:
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 decision of the Cotton Texti-
les Committee of the General Agreement on Tariffs and Trade app-
roving a Protocol to extend through September 30,1970 the Long-
Term Arrangement regarding International Trade in Cotton Textil-
es, done in Geneva on September 9,1962 (hereinafter referred to
as “the Long Term Arrangement”). I also refer to recent discu-
ssions between representatives of our two Governments and to the
agreement between our two Governments concerning exports of cot-
ton textiles from the Republic of China to the United States ef-
fected by an exchange of notes dated October 19,1963, as amended
. I confirm, on behalf of my Government, the understanding that
the 1963 agreement is superseded as of Jaunary 1,1967 by the fo-
llowing agreement. This understanding is based on our understan-
ding that the abovementioned Protocol entered into force for our
two Governments on October 1,1967.
1 This agreement shall extend through December 31,1970. During
the term of the agreement of the Republic of China shall limit
annual exports of cotton textiles to the United States to agg-
regat, group and specific limits at the levels specified in t-
he following paragraphs.
2 For the first agreement year, constituting the 12-month period
beginning January 1,1967, the appregate limit shall be 64,621,
052 square yards equivalent.
3 Within the aggregate limit, the following group limits shall
apply for the first agreement year:
Group Ⅰ (Apparel categories- 24,340,278 syd.eq.
Categories39-63)
Group Ⅱ (All other categori- 40,280,744 syd.eq.
es-Categories 1-38 &
64)
4 Within the applicable group limit, the following specific lim-
its shall apply for the first agreement year:
A Apparel Categories
Categories 41-42 91,072 dozen
Category 44 17,582 dozen
Category 45 10,549 dozen
Category 46 263,722 dozen
Category 47 29,303 dozen
Category 50 142,996 dozen
Category 51 229,731 dozen
Category 52 146,512 dozen
Category 53 11,721 dozen
Category 54 24,615 dozen
Category 57 117,210 dozen
Category 59 29,303 dozen
Category 60 22,152 dozen
Category 62 27,535 dozen
Category 63 146,512 dozen
B All Other Categories
Category 5 1,057,288 syds.*
Category 6 669,769 syds.
Category 9 19,925,620 syds.
Category 15 586,048 syds.
Categories 18 - 19 1,098,840 syds.
Categories 22 - 23 2,179,406 syds.
Categories 24 - 25 2,126,250 syds.
Category 26 3,586,612 (of which not more than 2,216,
250 syds. may be in duck)
Category 28 996,281 pcs.
Category 30 1,758,143 pcs.
Category 32 262,060 doz.
Category 34 118,804 pcs.
Category 35 79,043 pcs.
Category 64 138,632 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.
5 Within the aggregate limit, the limit for Group Ⅱ may be exc-
eeded by not more than 10％ and the limit for Group I may be
exceeded by not more than 5％. Within the applicable Group li-
mit, as it may be adjusted under this provision specific limi-
ts may be exceeded by not more than 5％.
6 a. Within the applicable group limit for each group the square
yard equivalent of any shortfalls occurring in exports in
the categories given specific limits may be used in any ca-
tegory not given a specific limit.
b. In the event the Government of the Republic of China desir-
esto export during any agreement year more than the consul-
tation level specified herein in any category not given a
specific limit it shall request consultation with the Gove-
rnment of the United States on this question. For the first
agreement year the consultation level shall be 405,169 squ-
are yards equivalent. The United States Government shall a-
gree to enter into such consultations and, during the cour-
se thereof, shall provide the Government of the Republic of
China with information on the condition of the United Stat-
es 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 to the consultation
level.
7 In the succeeding twelve-month periods for which any limitati-
on is in force under paragraphs 2, 3, 4, 6 and 9 of this agre-
ement, the level of exports permitted under such limitation s-
hall be increased by five percent of the corresponding level
for the preceding twelve-month period, the latter level not to
include any adjustments under paragraphs 5 or 15.
8 The Government of the Republic of China shall use its best ef-
forts to space exports to the United States as evenly as prac-
ticable, taking into account seasonal factors.
9 The Government of the Republic of China shall limit its expor-
ts of items made of corduroy in Categories 46, 50 and 51 to a
total annual limit of not more than 4,630,500 square yards for
the first agreement year. In the event concentration in expor-
ts from the Republic of China to the United States of America
of items of apparel made up of corduroy in Categories other t-
han 46, 50 and 51, or items of apparel made up of other cotton
fabrics causes or threatens to cause market disruption in the
United States, the Government of the United States of America
may claa for consultations with the Government of the Republic
of China in order to reach a mutually satisfactory solution to
the problem. The Government of the Republic of China shall ag-
ree to enter into such consultation and, during the course th-
ereof, the Government of the Republic of China shall limit its
exports of the item in question at an annual level of 105 per-
cent of its exports during the twelve-month period immediately
preceding the month in which consultations are requested.
10 Each Government agrees to supply promptly any available stat-
istical data requested by the other Government. In particular
the Governments agree to exchange monthly data on exports and
imports of cotton textiles from the Republic of China to the
United States. In the implementation of this agreement, the
system of categories and factors for conversion into square
yard equivalents set forth in the annex to this agreement sh-
all apply. In any situation where the determination of an ar-
ticle to be a cotton textile would be affected by whether the
criterion provided for in Article 9 of the Long-Term Arrange-
ment is used or the criterion provided for in paragraph 2 of
Annex E of the Long-Term Arrangement is used, the chief value
criterion used by the Government of the United States of Ame-
rica in accordance with paragraph 2 of Annex E shall apply.
11 During the term of this agreement, the United States Governm-
ent shall not invoke Article 3 of the Long-Term Arrangement
to limit imports of cotton textiles from the Republic of Chi-
na into the United States. The applicability of the Long-Term
Arrangement to trade in cotton textiles between the Republic
of China and the United States shall otherwise be unaffected
by this agreement.
12 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 condit-
ions in the United States, the Government of the United Stat-
es of America relaxes measures it has taken under the Long-T-
erm Arrangement for any of the categories, consultation may
be requested by the Government of the Republic of China to r-
emove or modify limits established for such categories by th-
is agreement.
13 If the Government of the Republic of China considers that as
a result of limits specified in this agreement the Republic
of China is being placed in an inequitable position vis-a-vis
a third country, the Government of the Republic of China may
request consultations with a view to taking appropriate reme-
dial action such as a reasonable modification of this agreem-
ent.
14 Mutually satisfactory administrative arrangements or adjustm-
ents may be made to resolve minor problems arising in the im-
plementation of this agreement including differences in poin-
ts of procedure or operation.
15
(a) For any agreement year subsequent to the first agreement y-
ear and immediately following a year of a shortfall (i.e.,
a year in which cotton textile exports from the Republic of
China were below the aggregate limit and any group and spe-
cific limits applicable to the category concerned) the Gov-
ernment of the Republic of China may permit exports to exc-
eed these limits by carryover in the following amounts and
manner:
(i) The carryover shall not exceed the amount of shortfall in
either the agreegate limit or any applicable group or sp-
ecific limit and shallnot exceed either five percent of
the aggregate limit or five percent of the applicable gr-
oup limit in the yeat of the shortfall, and
(ii) in the case of shortfalls in the categories subject to s-
pecific limits the carryover shall be used in the same c-
ategory in which the shortfall occurred, and shall not e-
xceed five percent of the specific limit in the year of
the shortfall, and
(iii) in the case of shortfalls not attributable to categories
subject to specific limits, the carryover shall be used
in the same group in which the shortfall occurred and sh-
all not be used to exceed any applicable specific limit
expcept in accordance with the provisions of paragraph 5
and shall be subject to the provisions of paragraph 6 of
the agreement.
(b) The limits referred to in subparagraph (a) of this paragra-
ph are without any adjustments under this paragraph or par-
agraph 5.
(c) The carryover shall be in addition to the exports permitted
in paragraph 5 of this agreement.
16 Either Government may terminate this agreement effective at
the beginning of a new agreement year by written notice to t-
he other Government given at least ninety days prior to the
beginning of such new agreement year. Either Government may
at any time propose revisions in the terms of the agreement.
If this understanding conforms with your Government's understan-
ding, this note and your Excellency's note of confirmation on b-
ehalf of the Government of the Republic of China shall constitu-
te an agreement between our two Governments.”
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 Governments on this ma-
tter.
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,
Ⅲ Notes from Mr. Solomon, For the Secretary of State to H.E. C-
how Shu-kai, Chinese Ambassador
October 12,1967
Excellency:
I have the honor to refer to the Agreement between our two Gove-
rnments concerning trade in cotton textiles signed today, herei-
nafter referred to as the 1967 Agreement and specifically to Ar-
ticle 14 of the 1967 Agreement.
In view of the shipments of cotton textiles from the Republic of
China since October 1. 1965 in excess of the levels for the 3rd
and 4th Agreement years provided by the Agreement of October 19,
1963 as amended, hereinafter referred to as the 1963 Agreement
and in view of the transition from an Agreement year beginning
on October 1 to an Agreement year beginning on January 1, my Go-
vernment understands that the following actions will be taken w-
ith respect to the limits established in the 1963 and 1967 Agre-
ements:
(a) Overshipments in the 12-month period beginning October 1,196
5 will be charged by the Government of the Republic of China
against all applicable limits for the succeeding period. A
detailed list of these overshipments is appended hereto as
Annex A.
(b) The succeeding period referred to in (a) shall constitute t-
he 15 months October 1, 1966-December 31,1967. The applicab-
le Aggregats, Group and Specific limits for this period sha-
ll be the lst Agreement year limits in the 1967 Agreement p-
lus one quarter of the 4th Agreement year limits under the 1
963 Agreement without the reductions specified in paragraph
13a of the 1966 amendment to the 1963 Agreement.
(c) To facilitate the implementation of this arrangement, Annex
B is an agreed list of all the applicable Aggregate, Group
and Specific limits for the succeeding period described in
paragraph (b) after charging against those limits (i) the o-
vershipment charges provided for in paragraph (a), and (ii)
the exports from the Republic of China to the United States
from October 1,1966 through April 30,1967.
(d) The Government of the Republic of China will use its best e-
fforts to avoid overshipments for the 15-month period refer-
red to in (b). However, to the extent that these 15-month l-
imits are exceeded, the Government of the Republic of China
agrees to charge such excess shipments against the limits a-
pplicable for the Agreement year beginning January 1,1968.
The Government of the United States of America agrees to su-
pply, as soon after the lst of January 1968 as may be pract-
icable, a detailed report showing the status of United Stat-
es imports of cotton textiles exported from the Republic of
China during this period.
I shall appreciate receiving Your Excellency's confirmation of
the above understanding.
Accept, Excellency, the renewed assurances of my highest consid-
eration.
For the Secretary of State:
(Signed)
Anthony M. Solomon
His Excellency
Chow Shu-kai,
Chinese Ambassador.
Enclosures:
1 Annex A-Overshipments
2 Annex B-Starting Totals
COTTON TEXTILES -REPUBLIC OF CHINA Annex A
Overshipments of bilateral Ceilings in Year Ending September 30,
1966
────────────────────────────────
Oveshipments (Oct.-65-Sept.-66)
─────────────────────
Control Excess
─────────
Level1 Imports2 Units Syd.
─── ──── ─── ──
────────────────────────────────
Apparel Group Syd. 20,255,250 20,391,276 136,026 136,026
───── ───── ──── ────
41/42 T-shir- Doz. 84,232 61,818
ts
44 Sweaters Doz. 16,604 14,989
45 Dress shi- Doz. 9,623 8,545
rts
46 Sport shi- Doz. 230,599 253,694 50,095 1,225,173
tts
47 Work shir- Doz. 27,563 3,315
ts
50 Trousers, Doz. 115,499 117,472 1,972 35,113
men's, etc
.
51 Trousers, Doz. 215,890 200,087
women, etc
.
52 Blouses Doz. 137,813 127,170
53 Dresses Doz. 11,025 5,848
54 Playsuits Doz. 21,191 19,632
57 Briefs &
Undersho- Doz. 115,763 147,742 31,979 359,763
rts
59 Underwear, Doz. 27,563 ---
not knit
60 Nightwear Doz. 14,442 17,170 2,728 141,747
62 Knit Appa- Lb. 22,772 3,570
rel
63 Woven App- Lb. 100,000 84,505
arel
────────────────────────────────
1 Control level for overshipped categories include swing, where
allowed.
2 Imports inclode entries allowed under special directive to Cu-
stoms plus other overshipments.
COTTON TEXTILES-REPUBLIC OF CHINA Annex B
Proposed October 1966-December 1967 Bilateral Levels as Adjusted
by October 1965-September 1966
Overshipments, October 1966-April 1967 Shipments, and May 1,1967
Starting Balances
────────────────────────────────
Oct. 66-Dec. 67
Proposed Levels Oct. 66-Apr. 67 May 1,1967
(Adjusted by Shipments Starting
Overshipments) ──────── Level
──────── ─────
────────────────────────────────
Aggregate Syd. 77,916,170 29,590,960 48,325,210
Non-Apparel Syd. 48,011,065 20,866,769 27,144,296
Group (1-38
, 64)
5 Ginghams, Syd. 1,318,347 --- 1,318,347
carded
6 Ginghams, Syd. 835,144 28,896 806,248
combed
9 Sheeting Syd. 23,757,321 13,575,291 10,182,030
, carded
15 Poplin & Syd. 730,751 358,750 372,001
Broadcl-
oth, ca-
rded
18/19 Prin- Syd. 1,197,146 339,000 858,146
tclo-
th
22/23 Twil- Syd. 2,717,531 1,600,001 1,117,530
ls &
Sate-
ens
24/25 Yarn Syd. 2,651,250 178,639 2,472,611
Dyed
Fabr-
ics
26 Misc. F- Syd. 4,472,195 2,390,324 1,162,871
abrics,
carded
(26 Duck) Syd. (2,592,798) (1,459,978) (1,132,820)
28 Pillowc- No. 1,242,276 226,080 1,016,196
ases, c-
arded
30 Dish To- No. 2,192,253 130,000 2,062,253
wels
32 Handker- Doz. 326,766 7,800 318,966
chiefs
34 Sheets, No. 9,295 182,616 -173,321
carded
35 Sheets, No. 98,560 --- 98,560
combed
64 Misc. c- Lb. 104,406 110,202 -5,796
otton m-
anufact-
ures
────────────────────────────────
Ⅳ Notes from Mr. Chow Shu-kai, Chinese Ambassador in American,
to Mr. Dean Rusk.Secretary of State of Amesricar.
Chinese Embassy
Washington
October 12,1967
Excellency:
I have the honor to acknowledge receipts of your note of today's
date, which reads as follows:
“I have the honor to refer to the Agreement between our two Go-
vernment concerning trade in cotton textiles signed today, here-
inafter referred to as the 1967 Agreement and specifically to A-
rticle 14 of the 1967 Agreement.
In view of the shipments of cotton textiles from the Republic of
China since October 1,1965 in excess of the levels for the 3rd
and 4th Agreement of October 19,1963 as amended, hereinafter re-
ferred to as the 1963 Agreement, and in view of the transition
from an Agreement year beginning on October 1 to an Agreement y-
ear beginning on January 1, my Government understands that the
following actions will be taken with respect to the limits esta-
blished in the 1963 and 1967 Agreements:
(a) Overshipments in the 12-month period beginning October 1, 19
65 will be charged by the Government of the Republic of Chi-
na against all applicable limits for the succeeding period.
A detailed list of these overshipments is appended hereto as
Annex A.
(b) The succeeding period referred to in (a) shall constitute t-
he 15 months October 1,1966-December 31,1967. The applicable
Aggregate, Group and Specific limits for this period shall
be the lst Agreement year limits in the 1967 Agreement plus
one quarter of the 4th Agreement year limits under the 1963
Agreement without the reductions specified in paragraph 13a
of the 1966 amendment to the 1966 Agreement.
(c) To facilitate the implementation of this arrangement, Annex
B is and agreed list of all the applicable Aggregate, Group
and Specific limits for the succeeding period described in
paragraph (b) after charging against those limits (i) the o-
vershipment charges provided for in paragraph (a), and (ii)
the exports from the Republic of china to the United States
from October 1,1966 through April 30,1967.
(d) The Government of Republic of China will use its best effo-
rts to avoid overshipments for the 15-month period referred
to in (b). However, to the extent that these 15-month limits
are exceeded, the Government of the Republic of China agrees
to charge such excess shipments against the limits applicab-
le for the Agreement year beginning January 1,1968. The Gov-
ernment of the United States of America agrees to supply, as
soon after the lst of January 1968 as may be practicable, a
detailed report showing the status of United States imports
of cotton textiles exported from the Republic of China duri-
ng this period.
I shall appreciate receiving Your Excellency's confirmation of
the above understanding.”
In reply, I have the honor to state that the Government of the
Republic of China confirms the understanding set forth in your
note and its attachment and to confirm acceptance by the Govern-
ment of the Republic of China of all provisions therein.
Accept, Excellency, the renewed assurances of my highest consid-
eration.
(Signed)
Chow Shu-kai
Ambassador of China
The Honorable Dean Rusk
Secretary of State
Department of State
Washington, D.C.