Ⅰ Note from Mr. William G. Barraclough for the Secretary of St-
ate, to Mr. James C. H. Shen, Ambassador of the Republic of
China.
Department of States
Washington
December 16, 1977
Excellency:
I have the honor to refer to discussions between representatives
of the Government of the Republic of China and the Government of
the United States of America in Washington from November 14 to
November 22 concerning exports to the United States of cotton,
wool and man-made fiber textiles and textile products manufactu-
red in the Republic of China. As a result of these discussions,
I have the honor to propose, on behalf of the Government of the
United States of America, the following Interim Agreement relat-
ing to trade in cotton, wool and man-made fiber textiles and te-
xtile products between the Republic of China and the United Sta-
tes:
1 The term of the Interim Agreement shall be from January 1, 197
8 through March 31, 1978.
2 Textiles and textile products covered by this Agreement shall
be classified in three groups, as follows:
Group Definition
Ⅰ Yarns, fabrics, made-up goods and miscellaneous textile prod-
ucts of cotton and man-made fibers.
Ⅱ Apparel of cotton and man-made fibers.
(Categories 331-342, 345, 347-352, 359, 613-652 and 659).
Ⅲ Wool textiles and textile products.
(Categories 400, 410, 411, 425, 429, 431-436, 438, 440, 442-4
48, 459, 464, 465, and 469).
The determination of whether a textile or textile product is of
cotton, wool, or man-made fiber shall be made in accordance with
the terms of paragraph 6. The categories referred to in the abo-
ve definitions of groups are those summarized in Annex A.
3 (a) The system of categories and the rates of conversion into
square yards the rates of conversion into square yards eq-
uivalent listed in Annex A shall apply in implementing the
Interim Agreement except as set out in subparagraph 3 (b).
(b) For purposes of this Agreement, and in recognition of the
patterns of trade of the Republic of China with the United
States of America, the groups of categories below are mer-
ged and treated as single categories as indicated, with S-
pecific Limits as set out in Annex B:
Designation in
Categories Merged Agreement
638, 639 638/639
645, 646 645/646
For purposes of computing charges to Aggregate, Group and Speci-
fic Limits the rates of conversion for categories 638 and 639 s-
hall be 15.5 square yards equivalent per dozen.
4 During the term of this Agreement, the Government of the Repu-
blic of China shall limit exports from the Republic of China
to the United States of America of cotton, wool, and man-made
fide fiber textiles and textile products manufactured in the
Republic of China to the Aggregate, Group and Specific Limits
set out in Annex B.
5 (a) Categories not subject to Specific Limits are subject to
consultation levels and to the Aggregate and applicable G-
roup Limits. Except as specified in Annex C, which sets o-
ut certain different consultation levels, consultation le-
vels for categories not subject to Specific Limits shall
be 250,000 square yards equivalent for categories in Grou-
p I, 175,000 square yards equivalent for categories in Gr-
oup Ⅱ, and 25,000 square yards equivalent for categories
in Group Ⅲ.
6 (a) Tops, yarns, piece goods, man-made articles, garments and
other textile manufactured products, all being products w-
hich derive their chief characteristics from their textile
components, of cotton, wool, or man-made fibers, or blends
thereof, in which any or all of those fibers represent ei-
ther the chief value of the fibers or 50 percent or more
by weight (or 17 percent or more by weight of wool) of the
product, are subject to this Agreement.
(b) For the purposes of this Agreement, textile products shall
be classified as cotton, wool or man-made fiber textiles
if wholly or in chief value of any of these fibers. Any p-
roducts covered by subparagraph 6 (a) but not in chief va-
lue of cotton, wool or man-made fiber shall be classified
as:
(i) Cotton textiles if containing 50 percent or more by w-
eight of cotton, or if the cotton component exceeds by
weight the wool and/or the man-made fiber component;
(ii) Wool textiles if cotton, and wool equals or exceeds 17
percent by weight of all component fibers; and
(iii) Man-made fiber textiles if neither of the foregoing a-
pplies.
7 Mutually satisfactory administrative arrangements or adjustme-
nts may be made to resolve minor problems arising in the impl-
ementation of this Agreement, including differences in points
of procedure or operation.
8 The visa and exempt certification administrative arrangements
presently in force shall continue in force under the Interim
Agreement.
9 Representatives of the two Governments will meet as soon as p-
ossible to complete negotiation of a longer term agreement to
be effective, retroactively, on January 1, 1978. The two Gove-
rnments enter into this Interim Agreement without prejudice to
the terms of the longer term agreement; no terms of this Inte-
rim Agreement shall constitute a precedent for the longer term
agreement.
If the foregoing proposal is acceptable to your Government, t-
his note and your Excellency's note of acceptance on behalf of
the Government of the Republic of China shall constitute an a-
greement between the Government of the United States of Ameri-
ca and the Government of the Republic of China.
Accept, Excellency, the renewed assurances of my highest consid-
eration.
For the Secretary of
State:
(Signed)
William G. Barraclough
Deputy Assistant
Secretary
His Excellency
James C. H. Shen
Ambassador of the
Republic of China

ANNEX A
Category Description Conversion Factor Unit of Measure
YARN
－Cotton
300 Carded 4.6 Lb.
301 Combed 4.6 Lb.
－Wool
400 Tops and yarn 2.0 Lb.
－man-made fiber
600 Textured 3.5 Lb.
601 Cont. cellulosic 5.2 Lb.
602 Cont. noncellulosic 11.6 Lb.
603 Spun cellulosic 3.4 Lb.
604 Spun noncellulosic 4.1 Lb.
605 Other yarns 3.5 Lb.
FABRIC
－Cotton
310 Ginghams 1.0 SYD
311 Velveteens 1.0 SYD
312 Corduroy 1.0 SYD
313 Sheeting 1.0 SYD
314 roadcloth 1.0 SYD
315 Print tcloths 1.0 SYD
316 Shirtings 1.0 SYD
317 Twills and Sateens 1.0 SYD
318 Yarn-dyed 1.0 SYD
319 Duck 1.0 SYD
320 Other fabrics, n. k. 1.0 SYD
－Wool
410 Woolens and Worsted 1.0 SYD
411 Tapestries and upholstery 1.0 SYD
425 Knit 2.0 Lb.
429 Other Fabrics 1.0 SYD
－Man-made fiber
610 Cont. cellulosic, n. k. 1.0 SYD
611 Spun cellulosic, n. k. 1.0 SYD
612 Cont. noncellulosic, .n .k 1.0 SYD
613 Spun noncellulosic, n. k. 1.0 SYD
614 Other fabrics, n. k. 1.0 SYD
625 Kint 7.8 Lb.
626 Pile and tufted 1.0 SYD
627 Specialty 7.8 Lb.
APPAREL
－Cotton
330 Handkerchiefs 1.7 Dz.
331 Gloves 3.5 DPR
332 Hosiery 4.6 DPR
333 Suit-type coats, M and B 36.2 Dz.
334 Other coats, M and B 41.3 Dz.
335 Coats, W, G and I 41.3 Dz.
336 Dresses (inc. uniforms) 45.3 Dz.
337 Playsuits, sunsuits, wash-
suits, creepers 25.0 Dz.
338 Knit shirts, (inc. T－shi-
rts, other and sweatshirt-
s) M and B 7.2 Dz.
339 Knit shirts and blouses (i
nc. T-shirts, other & sw-
eatshirts) W, G and I 7.2 Dz.
340 Shirts, n. k. 24.0 Dz.
341 Blouses, n. k. 14.5 Dz.
342 Skirts 17.8 Dz.
345 Sweaters 36.8 Dz.
347 Trousers, slacks, and sho-
rts (outer) M and B 17.8 Dz.
348 Trousers, slacks and shor
ts (outer) W,G and I 17.8 Dz.
349 Brassieres, etc. 4.8 Dz.
350 Dressing gowns, inc. bath-
robes, and beach robes, l-
ounging gowns house coats,
and dusters 51.0 Dz.
351 Pajamas and other nightwe-
ar 52.0 Dz.
352 Underwear (inc. union sui-
ts) 11.0 Dz.
359 Other apparel 4.6 Dz.
－Wool
431 Gloves 2.1 DPR
432 Hosiery 2.8 DPR
433 Suit-type coats, M and B 3.0 No.
434 Other coats, M and B 4.5 No.
435 Coats, W, G and I 4.5 No.
436 Dresses 4.1 No.
438 Knit shirts and blouses 15.0 Dz.
440 Shirts and blouses, n. k. 24.0 Dz.
442 Skirts 1.5 No.
443 Suits, M and B 4.5 No.
444 Suits, W, G and I 4.5 No.
445 Sweaters, M and B 36.8 Dz.
446 Sweaters, W, G and I 36.8 Dz.
447 Trousers, slacks, and sho-
rts (outer) M and B 1.5 No.
448 Trousers, slacks and shor-
ts (outer) W, G. and I 1.5 No.
459 Other wool apparel 2.0 Lb.
－Man-made fiber
630 Handkerchiefs 1.7 Dz.
631 Gloves 3.5 DPR
632 Hosiery 4.6 DPR
633 Suit-type coats, M and B 36.2 Dz.
634 Other coats, M and B 41.3 Dz.
635 Coats, W, G and I 41.3 Dz.
636 Dresses 45.3 Dz.
637 Playsuits, sunsuits, wash-
suits, etc. 21.3 Dz.
638 Knit shirts, (inc. T-shir-
ts), M and B 18.0 Dz.
639 Knit Shirts and blouses (i
nc. T-shirts), W. G and I 15.0 Dz.
640 Shirts, n. k. 24.0 Dz.
641 Blouses, n. k. 14.5 Dz.
642 Skirts 17.8 Dz.
643 Suits, M and B 4.5 No.
644 Suits, W, G and I 4.5 No.
645 Sweaters, M and B 36.8 Dz.
646 Sweaters, W, G and I 36.8 Dz.
647 Trousers, slacks, and sho-
rts (outer), M and B 17.8 Dz.
648 Trousers, slacks and shor-
ts (outer), W, G and I 17.8 Dz.
649 Brassieres, Etc. 4.8 Dz.
650 Dressing gowns, inc. bath
and beach robes 51.0 Dz.
651 Pajamas and other nightwe
ar 52.0 Dz.
652 Underwear 16.0 Dz.
659 Other apparel 7.8 Lb.
MADE-UPS AND MISC.
－Cotton
360 Pillowcases 1.1 No.
361 Sheets 6.2 No.
362 Bedspreads and quilts 6.9 No.
363 Terry and other pile towe-
ls 0.5 No.
369 Other cotton manufactures 4.6 Lb.
－Wool
464 Blankets and auto robes 1.3 Lb.
465 Floor covering 0.1 SFT
469 Other cotton manufactures 2.0 Lb.
－Man-made fiber
665 Floor covering 0.1 SFT
666 Other furnishings 7.8 Lb.
669 Other cotton manufactures 7.8 Lb.

ANNEX B ANNEX C
AGGREGATE, GROUP AND DESIGNATED CONSULTATION LEVELS
SPECIFIC LIMITS (JANUARY 1, 1978 TO MARCH 31,
(JANUARY 1, 1978 TO MARCH 31, 1978)
1978) Category Level
unit Limit (Square Yards Equiv-
Aggregate SYE 189,736,209 alent)
Group 1 SYE 41466,8729 310 730,924
Group 2 SYE 147,018,910 314 375,000
Group 3 SYE 1,250,426 315 524,999
Category 317 1,041,266
313 Syd. 9,703,853 318 1,000,000
335 Doz. 10,688 320 4,500,000
340 Doz. 146,000 331 375,000
341 Doz. 79,146 336 287,500
347 Doz. 69,797 337 500,000
348 Doz. 109,761 338 184,595
434 No. 88,889 339 313,526
440 Doz. 2,996 345 273,829
445 Doz. 2,512 350 400,000
446 Doz. 14,431 351 587,028
633 Doz. 11,939 352 550,000
634 Doz. 157,260 359 1,175,000
635 Doz. 130,547 360 500,000
638/639 Doz. 1,585,323 361 500,000
640 Doz. 729,845 363 375,000
641 Doz. 146,249 369 561,668
643 No. 165,435 400 62,500
644 No. 198,092 410 250,000
645/646 Doz. 1,006,893 435 123,158
647 Doz. 423,487 436 26,780
648 Doz. 716,502 438 48,691
448 67,500
459 370,212
600 7,500,000
605 375,000
610 375,000
612 500,000
613 950,000
614 750,000
625 1,500,000
627 16,842,577
631 1,845,625
632 944,000
636 3,500,000
637 508,104
642 425,000
650 875,000
651 3,750,000
652 450,000
659 12,537,585
666 1,884,386
669 2,500,000

Ⅱ Note form Mr. James C. H. Shen. Ambassador of the Republic of
China to Mr. Cyrus R. Nance, Secretary of State.
December 16, 1977
Excellency:
I have the honor to acknowledge the receipt of Your Excellency's
Note of to-day's date which proposes, on behalf of the Governme-
nt of the United States of America, an Interim Agreement relati-
ng to trade in cotton, wool and man-made fiber textiles and tex-
tile products between the Republic of China and the United Stat-
es for the period from January 1,1978 through March 31,1978.
I have further the honor to confirm that your proposed Interim
Agreement is acceptable to the Government of the Republic of Ch-
ina.
Accept, Excellency, the assurances of my highest consideration.
(Signed)
James C. H. Shen
Ambassador of the
Republic of China
The Honorable
Cyrus R. Vance
Secretary of State