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1.Signed and exchanged on February 3,1977; Entered into force retrospectively on January 1,1977.
 
Ⅰ Note from Mr. Cyrus R. Vance, Secretary of State to H.E. Jam-
es C. H. Shen, Chinese Ambassador.
February 3, 1977
Excellency:
I have the honor to refer to the bilateral agreement of May 21,-
1975, as amended, between our two governments on trade in cotto-
n, woll and man-made fiber textiles, hereinafter referred to as
the Agreement, and to discussions between representatives of out
two governments from November 3 through 5, 1976, in Washington,
D.C., pursuant to paragraph 9 of the Agreement. As a result of
these discussions I wish to propose the following for the third
agreement year (January 1, 1977 through December 31, 1977).
1 The consultation levels will be as follows:
A. For the Categories specified below:
Category Level
(Square Yards Equivalent)
26/27 15,000,000
31 1,000,000
54 1,000,000
55 1,000,000
62 1,000,000
64 4,000,000
125 2,000,000
* Country with which the Republic of China has no diplomatic re-
lations.

Category Level
(Square Yards Equivalent)
210 3,000,000
214 6,000,000
238 15,000,000
240 24,000,000
243 10,000,000
(sub-level for fishnets, (561,600)
TSUSA No. 355.4560)
B. The consultation levels for those categories without speci-
fic limits not mentioned in paragraph 1. A above remain the
same for the third agreement year as for the second agreem-
ent year unless the two governments shall agree otherwise
during the third agreement year.
2 None of the increase in Category 210 over the level for
the second agreement year will be used for impression fa-
bric (TSUSA Numbers 338.3014 and 338.3016).
If the foregoing proposal is acceptable to your Governme
nt, this note and your note of acceptance on behalf of t-
he Government of the Republic of China shall constitute
an agreement between our two Governments pursuant to par-
agraph 9 of the Agreement.
Accept, Excellency, the renewed assurances of my highest
consideration.
For the Secretary of
State:
(Illegible)
His Excellency
James C. H. Shen,
Ambassador of the Republic of China.
Ⅱ Note from Mr. James C. H. Shen, Chinese Ambassador, to Mr. C-
yrus R. Vance, Secretary of State of America.
February 3, 1977
Excellency:
I have the honor to acknowledge receipt of Your Excellency's No-
te of today's date, which reads as follows:
"Excellency:
I have the honor to refer to the bilateral agreement of May 21,-
1975, as amended, between our two governments on trade in cotto-
n, wool and man-made fiber textiles, hereinafter referred to as
the Agreement, and to discussions between representatives of our
two governments from November 3 through 5,1976, in Washington,
D.C., pursuant to paragraph 9 of the Agreement. As a result of
these discussions I wish to propose the follwing for the third
agreement year (January 1, 1977 through December 31, 1977).
1 The consultation levels will be as follows:
A. For the Categories specified below:

Category Level
(Square Yards Equivalent)
26/27 15,000,000
31 1,000,000
54 1,000,000
55 1,000,000
62 1,000,000
64 4,000,000
125 2,000,000
210 3,000,000
214 6,000,000
238 15,000,000
240 24,000,000
243 10,000,000
(sub-leval for fishuets, (561,600)
TSUSA No. 355.4650)
B. The consultation levels for those categories without speci-
fic limits not mentioned in paragraph 1. A above remain the
same for the third agreement year as for the second agreem-
ent year unless the two governments shall agree otherwise
during the third agreement year.
2. None of the increase in Category 210 over the level for
the second agreement year will be used for impression f-
abric (TSUSA Numbers 338.3014 and 338.3016).
If the foregoing proposal is acceptable to your Governm-
ent, this note and your note of acceptance on behalf of
the Government of the Republic of China shall constitute
an agreement between our two Governments pursuant to pa-
ragraph 9 of the Agreement.
Accept, Excellency, the renewed assurances of my highest
consideration.
For the Secretary of State"
I further have the honor, on behalf of my Government, to accept
Your Excellency's proposal and to confirm that Your Excellency's
Note and this note in reply shall constitute an agreement betwe-
en our two Governments.
Accept, Excellency, the renewed assurances of my highest consid-
eration.
James C. H. Shen
Ambassador of the
Republic of China
The Honorable Cyrus R. Vance
Secretary of State