Ⅰ Note form Mr. James C. H. Shen, Chinese Ambassador, to Mr. R-
obert S. Strauss, the Special Representative for Trade Negot-
iations.
December 29,1978
Excellency:
I have the honor to refer to the recent discussions between rep-
resentatives of the Government of the Republic of China and the
Government of the United States of America with respect to expo-
rts from the Republic of China of color television receivers. I
have further the honor to confirm that the Government of the Re-
public of China will implement the measures and obligations to
which it has agreed, under the following provisions:
1 The Government of the Republic of China will administer its c-
ontrol over exports to the United States from the Republic of
China of color television receivers as defined in Annex A at
the levels set forth in Annex B, for the period from February
1,1979 through June 30,1980, and of television receivers as s-
et forth in Annex C, for the period from February 1,1979 thr
ough June 30,1979.
2 The Government of the United States of America will assist the
Government of the Republic of China in implementing its contr-
ol over exports of color television receivers to the United S-
tates at the levels set forth in Annex B as follows:
(a) All color television receivers exported from the Republic
of China prior to February 1,1979, will be counted against
the period in which they are entered, or withdrawn from wa-
rehouse, for consumption; except that if they are entered
or withdrawn prior to April 1,1979 they will be counted ag-
ainst the pipeline period (July 1,1978 through January 31,
1979). All color television receivers exported from the Re-
public of China after January 31,1979 will be counted agai-
nst the period in which they were exported, except as noted
in sub-paragraph (e) below.
(b) Except as provided in paragraphs 4 and 6, in the event that
the restraint level set forth in Annex B is reached prior
to the end of a restraint period, the Government of the Un-
ited States of America will delay further importation of c-
olor television receivers until after the end of that rest-
raint period.
(c) All color television receivers exported from the Republic
of China on or after February 1,1979, will be denied impor-
tation for consumption in the United States unless such re-
ceivers have been issued valid export visas by the Governm-
ent of the Republic of China, a facsimile of such visas to
be provided to the Government of the United States of Amer-
ica by the Government of the Republic of China.
(d) All color television receivers exported from the Republic
of China prior to February 1,1979 may be entered, or with-
drawn from warhouse, for consumption without an export visa
prior to April 1,1979, Thereafter, such receivers may be e-
ntered, or withdrawn from warehouse, for consumption only
if they have been issued export visas and upon such entry
or with-drawal will be counted against the first restraint
period.
(e) Exceptions to the specifications in subparagraph (a) above
that imports are to be counted against the restaint level
for the restraint period in which they are exported may be
made in order to (1) permit import that are exported in the
first restraint period, but that are not imported for cons-
umption until more than 90 days following the beginning of
the second restraint period, to be counted against the res-
traint level for that second restraint period; and (2) per-
mit imports that were exported in the first restraint peri-
od, but that were denied entry in that restraint period pu-
rsuant to subparagraph (b) above, to be counted against the
restraint level for the second restraint period.
3 The Government of the Republic of China will use its best eff-
orts to space exports of color television receivers to the Un-
ited States as evenly as practicable, over the restraint peri-
od, consistent with seasonal considerations.
4 (a) In the event a shortfall occurs with respect to the restr-
aint level during the first restraint period, carryover m-
ay be made to the second restraint period of up to 11 per-
cent of the restraint level in the previous period, but n-
ot in excess of the actual shortfall.
(b) The Government of the Republic of China will provide time-
ly notice to the Government of the United States of Ameri-
ca of its intention to exercise the rights provided in su-
bparagraph (a) above, and the Government of the United St-
ates of America will endeavor to make appropriate adjustm-
ents in the applicable restraint level.
5 The Government of the United States of America also will assi-
st the Government of the Republic of China in implementing its
control over exports of color television receivers to the Uni-
ted States set forth in Annex C in accordance with subparagra-
ph 2 (c) above. In the event the restraint level set for in A-
nnex C is reached prior to the end of the February 1 through
June 30,1979 period, the Government of the United States of A-
merica will delay further importation until the end of that p-
eriod.
6 The Government of the United States of America will notify the
Government of the Republic of China as soon as possible should
it become necessary for the Government of the United States of
America to delay importation due to filling of the restraint
level.
7 The Government of the Republic of China will promptly supply
the Government of the United States of America with monthly d-
ata on exports to the United States of color television recei-
vers as such data become available. The Government of the Uni-
ted States of America will supply the Government of Republic
of China with data on monthly imports of color television rec-
eivers, by principal countries of origin, as such data become
available. Each Government agrees to supply promptly any other
pertinent and readily available statistical data requested by
the other Government In accordance with current practice, Uni-
ted States data will be used in determining the necessity for
delay by the Government of the United States of America of any
imports pursuant to these Notes.
8 (a) Either Government may request consultations on any matters
arising from the provisions of these Notes, including, in-
ter alia, any problems that may arise relating to circumv-
entions of the Agreement embodied in these Notes. Such co-
nsultations will take place at a mutually convenient time,
no later than thirty days from the date on which such req-
uest is made, unless otherwise mutually agreed.
(b) If, in the view of either Government, the economic condit-
ions prevailing at the time of the recent discussions men-
tioned above have changed substantially, that Government
may initiate consultations for review of the provisions of
these Notes including the possibility of termination or m-
odification of the report restraints.
(c) Mutually satisfactory administrative arrangements or adju-
stments may be made to resolve problems arising in the im-
plementation of these Notes, including differences in poi-
nts of procedure or operation.
9 If the Government of the Republic of China considers that, as
a result of the application of the provisions of these Notes,
the Republic of China is placed in an inequitable position vi-
s-a-vis other major exporting countries in respect of exports
to the United States of color television receivers, the Gover-
nment of the Republic of China may initiate consultations with
the Government of the United States of America.
10 Any rights of trade retaliation that the Government of the R-
epublic of China may have under existing treaties or commerc-
ial arrangements will not be exercised with respect to measu-
res taken by the Government of the United States of America
pursuant to these Notes.
11 The two Government may amend the provisions of these Notes if
such amendments are mutually agreeable.
12 No provisions of these Notes will be construed as applying to
prices or production of color television receivers or alloca-
tion of shipments among firms selling (except that it is rec-
ognized that such allocation may be deemed necessary and the-
refore directed by the Government of the Republic of China in
its implementation of the provision of these Notes) or buying
color television receivers.
13 Either Government may terminate the provisions of these Notes
by giving sixty days prior written notice to the other Gover-
nment.
14 The foregoing provisions of these Notes will be implemented
by the two Governments in accordance with the laws and regul-
ations applicable in their respective countries.
I have further the honor to request Your Excellency to confi-
rm on behalf of the Government of the United States Of Ameri-
ca that it will implement its measures and obligations under
the above provisions, and to propose that this Note and Your
Excellency's Note in reply will constitute an agreement betw-
een the two Governments as characterized by the above provis-
ions.
Accept, Excellency, the renewed assurances of my highest con-
sideration.
(Signed)
James C. H. Shen
Ambassador of the
Republic of China
His Excellency
Robert S. Strauss
The Special Representative
for Trade Negotiations
Washington, D. C.
ANNEX A
The following items from the Tariff Schedules of the United Sta-
tes Annotated (1978) are covered by the provisions of the Agree-
ment:
Color television receivers, having a picture tube, provided for
in TSUSA items 685.2025, 685.2026, 685.2027, 685.2028, 685.2029,
685.2031, 685.2044, 685.2046, 685.2055, 685.2061, 685.2062.
ANNEX B
The Government of the Republic of China will apply restraints on
exports to the United States of color television receivers as d-
efined in Annex A during the periods specified, at the levels i-
ndicated:
Period 1 (February 1,1979-June 30,1979) -127,000 units*
period 2 (July 1,1979-June 30,1980) -373,000 units
* Note to Annex B
The level for Period 1 (February 1,1979-June 30,1979) will be a-
djusted depending upon the amount of color television receivers
actually exported from the Republic of China during the period
July 1,1978 through January 31,1979, as determined by U.S. Cust-
oms data. If the quantity actually exported from the Republic of
China exceeded 368,000 units in that period, the amount of the
excess will be deducted from 127,000. If the quantity actually
exported from the Republic of China during that period is less
than 368,000 units, the amount of deficiency will be added to 1
27,000.
ANNEX C
The Government of the Republic of China also intends to control
exports of incomplete color television receivers as described in
tiem 685.2064 of the Tariff Schedules of the United States. It
intends to limit the export of such items to the United States
at a level of 270,000 sets during the period February 1-June 30,
1979. The Government of the Republic of China recognizes that t-
he Government of the United States of America has the right to
take action under Section 203(g) (2) of the Trade Act of 1974 to
assist the Government of the Republic of China in administering
its self-restraint measure in the event that it appears exports
from the Republic of China will exceed the level of self-restra-
int which the Government of the Republic of China has stated it
will apply.
The government of the Republic of China is not in a position to
make a commitment regarding extension of the limitation for an
additional time period, but is prepared to review the matter fu-
rther, not later than May 31,1979 with the objective of establi-
shing a control level for the period July 1,1979-June 30,1980.
The Government of the Republic of China recognizes that the Gov-
ernment of the United States of America has the right to take a-
ction under Section 203 (g) (2) of the Trade Act of 1974 to imit
imports during the period July 1,1979-June 30,1980.
Ⅱ Note from Mr. Robert S. Strauss, the Special Representative
for Trade Negotiations, to Mr. James C. H. Shen, Chinese Amb-
assador.
December 29,1978
Excellency:
I have the honor to acknowledge receipt of Your Excellency's le-
tter of today's date, a copy of which is attached to this lette-
r, concerning color television receivers as defined in your let-
ter and its annexes.
I have further the honor to confirm on behalf of the Government
of the United States of America that it will implement its meas-
ures and obligations as set forth in your letter and annexes, a-
nd to confirm that the Government of the United States of Ameri-
ca agrees that your Excellency's letter and annexes and this le-
tter will constitute an Agreement between the two Governments.
Accept, Excellency, the renewed assurances of my highest consid-
eration.
Sincerely,
(Signed)
Robert S. Strauss
James C. H. Shen
Ambassador of the
Republic of China