Ⅰ Letter from Mr. David Dean, Chairman of the Board and Managi-
ng Director of American Institute in Taiwan, to Mr. Konsin C.
shah, Representative of Coordination Council for north American
Affairs.
March 6,1980
Mr. Konsin C. Shah, Representative Coordination Council for Nor-
th American Affairs
5161 River Road
Washington, D.C. 20016
Dear Konsin,
Pursuant to the consultations held in Washington, D.C. February
4-7, 1980 regarding the Agreement relating to Trade in Cotton,
Wool, and Man-Made Fiber Textiles and Textile Products with ann-
exes, dated June 8,1978, as amended (the Agreement), I note that
:
1 (a) With respect to the use of the flexibility provisions in
the Agreement, CCNAA, undertakes to limit utilization of swing
and carryover/carryforward to the following maximum limits for
the Specific Limit Categories and Sub-Categories listed below
during Agreement Year 1980
only:
──────────────────────────
Percent Swing/
Category Carryover/ Percent Carry-
Carryforward Swing forward
──────────────────────────
331 2 3
333/4/5 6
(333/4) (6)
(335) (6)
338/339 6
340 6
341 4
347/348 6
(347) (6)
(348) (4)
633/4/5 2.5 2
(633/4) (2.5) (2)
(635) (2.5) (2)
638 3 2
639 2 2
640 2 3
641 3 2
645/646 2 2
648 2 2
659-pt.
(headwear) 5
659-pt.
(Swimwear) 5
440 1 3
445/6 1 3
──────────────────────────
(b) Sub-paragraph (a) hereof shall not affect the flexibi lity
provisions for Groups Ⅰ and Ⅲ, as provided for in the Agr-
eement.
2 CCNAA agrees that in 1980 exports from Taiwan to the United S-
tates of products in Category 434 will not exceed 23,786 dozen
.
3 AIT and CCNAA agrees that it is not necessary to hold a major
review, as provided in paragraph 20 (c) of the Agreement prior
to November 15,1980.
I would appreciate your confirmation of the above understandings
.
Sincerely,
(Signed)
David Dean
Chairman of the Board
and Managing Director
Ⅱ Letter from Mr. Konsin C. Shah, Representative of Coordinati-
on Council for North American Affairs, to Mr. David Dean, Ch-
airman of the Board and Managing Direction of American Insti-
tute in Taiwan.
April 10,1980
Mr. David Dean
Chairman of the Board
and Managing Director
American Institute in Taiwan
1700 North Moore Street
Arlington, VA 22209
Dear David:
I wish to acknowledge receipt of your letter dated March 6,1980
containing a proposed three-point amendment to the Agreement re-
lating to Trade in Cotton, Wool and Man-Made Fiber Textiles and
Textile Products dated June 8,1978, as amended, between our two
countries. I also wish to confirm, pursuant to instructions, th-
at my Government accepts the proposed amendment as contained in
your letter mentioned above.
Sincerely,
(Signed)
Konsin C. Shah
Representative
Ⅲ Letter from Mr. David Dean, Chairman of the Board and Managi-
ng Director of American Institute in Taiwan, to Mr. Konsin C.
Shah, Representative of Coordination Council for North American
Affairs.
March 7,1980
Mr. Konsin C. Shah, Representative
Coordination Council for North
American Affairs
5161 River Road
Washington, D.C. 20016
Dear Konsin,
I refer to discussions held in Washington, D.C February 4-7,1980
between representatives of the Coordination Council for North A-
merican Affairs (CCNAA) and the American Institute in Taiwan (A-
IT) concerning exports to the United States of America of cotton
, wool, and man-made fiber textiles and textile products from T-
aiwan. As agreed during these discussions, I propose the follow-
ing regarding implementation of the Agreement relating to Trade
in Cotton, Wool, and Man-made Fiber Textiles and Textile Produc-
ts dated June 8,1978:
1 The textile products in the following Specific Limit categori-
es shall, effective January 1,1980, cease to be subject to the
Specific Limits set out in Annex B to the Agreement and shall
become subject to the export certification system referred to
in paragraph 5 of the Agreement as amended in this letter.
313
643
644
647
2 In Annex B, the following sub-categories of Category 695 will
be converted to the Specific limits set forth below, beginning
with the 1980 Agreement Year:
─────────────────────────
Category 1980 base Level
─────────────────────────
659-sub (swimwear) 1,802,000 lbs.
(women's, girls' & infants') 1,696,000 lbs.
(men's & boys") 238,500 lbs.
─────────────────────────
3 In Annex B, the Specific Limit for merged Category 645/646 in
1980 shall be 3,785,919 dozen.
4 In Annex B, the Group Limit for Group Ⅲ shall be:
1980 1981 1982
5,459,397 SYE 5,513,991 SYE 5,569,131 SYE
5 During 1980 the maximum permissible level of exports for Cate-
gory 638 shall be 1,944,754 dozen including (a) swing of 3 pe-
rcent, (b) carryover/carryforward of 2 percent, (c) shift of
10 percent from Category 639 and (d) additional special shift
of up to 320,000 dozens from Category 639 at an exchange ratio
in dozens of 3:2 (3 dozens deducted from Category 639 for each
two dozens shifted to Category 638). CCNAA will inform AIT of
the amounts that will be shifted.
6 During 1980 only, and within the Aggregate and applicable Gro-
up Limits as they may be adjusted pursuant to paragraphs 6 and
8 of the Agreement, the limit for Category 338/339 may be exc-
eeded by up to 10 percent in addition to the adjustment pursu-
ant to Sub-paragraph 7 (a) of the Agreement so long as an eqi-
valent quantity in dozens is deducted in the same Agreement Y-
ear from the Limits for either Category 638 or Category 639,
provided further that any deduction from Category 638 must be
used only in connection with export of products falling within
Category 338 and any deduction from Category 639 must be used
only in connection with export of products falling within Cat-
egory 339. CCNAA will inform AIT of which Categories it wishes
to adjust and the amounts involved.
7 Paragraph 5 of the Agreement shall be changed to read as foll-
ows:
" 5 An Export certification (EC) System shall be established,
effective from the lst of January 1980 and until the termin-
ation of the Agreement on December 31,1982. Each Category a-
nd Sub-Category not subject to a Specific Limit shall be su-
bject to the Aggregate and applicable Group Limits and the
consultation procedures as set forth in this paragraph.
"(a) CCNAA shall provide weekly reports promptly (i.e.,as soon
as possible but in no case later than five days following the
close of the reporting period) to AIT on export. certificati-
ons (EC's) by category, issued for exports to the United Sta-
tes for textile categories included in the EC system.
"(b) AIT may request consultations with a view to agreement no
an appropriate level of restraint for any Category or Sub-Ca-
tegory not given a Specific Limit for any Agreement Year whe-
never, in the view of AIT, conditions in the U.S. market are
such that a limitation on further trade in any such Category
or Sub-Category is necessary in order to eliminate a real ri-
sk of market disruption.
"(c) The request for such consultations be supported as soon
as possible, and in any case within 21 days of the date of t-
he request, by a statement of market conditions in the United
States which in the opinion of AIT make necessary the request
for consultations. This statement shall include data similar
to that contemplated in paragraphs 1 and 2 of Annex A of the
Arrangement.
"(d) Upon receipt of a request for such consultations, CCNAA,
as requested by AIT, shall cease or otherwise limit further
issuance of EC's for a period of seven (7) U.S. working days.
AIT may request CCNAA to extend such period and may also req-
uest CCNAA to limit the issuance of EC's to a level different
from that specified in paragraph 5 (e) (i) and (ii) below, w-
hichever is applicable.
”CCNAA shall consider any such request sympathetically and
shall respond promptly. Unless agreed otherwise, CCNAA shall
have the right, following the expiry of the period of seven (
7) U.S. working days mentioned above, to resume the issuence
of EC's up to the level specified in paragraph 5 (e) (i) and
(ii) below, whichever is applicable. EC's thus issued as well
as EC's issued prior to receipt of the request for consultat-
ions may be honored by the issuance of export licenses by CC-
NAA. Unless agreed otherwise, CCNAA and AIT shall consult as
soon as possible within 30 days of the request for such cons-
ultations and shall make their best efforts to complete such
consultations within 30 days of the commencement.
"(e) (i) In the event that consultations do not result in agr-
eement, AIT shall have the right to request CCNAA to limit e-
xports of the relevant products during the Agreement Year in
which the request for consultations is made to a level not l-
ess than the highest of:
(A) the level of the trade in the relevant product of category
or the immediately preceding Agreement Year plus either 20
percent of that level (in the case of cotton and man-made f-
iber products) or 6 percent of that level (in the case of w-
ool products).
(B) the average of the level of trade in the relevant product or
category for all previous Agreement Years since January 1,19
78 plus either 20 percent of that level (in the case of cot-
ton and man-made fiber products) or 6 percent of that level
(in the case of wool products),
(C) the limit requested by AIT for the cessation of issuance of
EC's in accordance with paragraph 5 (d) hereof.
(ii) Except as provided for in paragraph (iv) below in respect
of any product or category where a limit has been establis-
hed for a single Agreement Year and where, in the immediat-
ely subsequent Agreement Year AIT makes another request for
consultations under paragraph 5 (b) of this Agreement, and,
in the even that such consultations do not result in agree-
ment, AIT shall have the right to request CCNAA to limit e-
xports of the relevant products during the Agreement Year
in which the request for consultations is made, to a level
not less than the higher of:
(A) the limit established for the immediately preceding year pl-
us either 8 percent of that limit (in the case of cotton and
manmade fiber products) or 3 percent of that limit (in the c
ase of wool products),
(B) the limit requested by AIT for the cessation of issuance of
EC's in accordance with paragraph 5 (d) hereof.
(iii) Where AIT makes a request under paragraph 5 (e)
(i) and (ii) hereof, CCNAA agrees that it will honor such a req-
uest.
(iv) In respect of any product or category for which a limit is
established in any one Agreement Year, either side may, pr-
ior to the start of the immediately following agreement Ye-
ar, elect to convert that limit into a Specific Limit effe-
ctive as such, from the lst of January of the immediately
following Agreement Year and that product or category shall
remain subject to a Specific Limit for the duration of this
Agreement. Where such a conversion is made, the Specific L-
imit so created shall, from the date of effectiveness, be
accorded anneal growth at 5.0 percent (in respect of cotton
and man-made fiber products) or 1 percent (in respect of w-
ool products). The Specific Limit so created shall, beginn-
ing in the year of effectiveness be accorded flexibility p-
ursuant to paragraphs 7 (a) and 8 of this Agreement, except
that the carryover provisions of paragraph 8 shall not app-
ly until the second year.
(v) Should two requests in respect of the same category or prod-
uct be made under paragraph 5 (b) hereof during the term of
this Agreement but in different Agreement Years, not being
consecutive years, the provisions of paragraph 5 (e) (i) sh-
all apply to the second of the two requests.
(vi) For the purpose of paragraph 5 hereof the phrase "Level of
Trade" shall mean the level of trade established by consul-
tations to be held within the first six months after the e-
nd of each Agreement Year or, where such consultations hav-
e not been completed, the level of trade by date of export.
"
8 The procedures described in paragraph 5 (a) of the Agreement,
as proposed in paragraph 7 of this letter, will become effect-
ive June 1,1980. Until June 1,1980 CCNAA will provide AIT, on
a biweekly basis, with statistics of exports from Taiwan to t-
he United States of products in the categories subject to the
EC system.
If CCNAA concurs with the foregoing, then this letter and your
letter of confirmation will constitute an understanding between
us regarding implementation of the Agreement.
Sincerely,
(Signed)
David Dean
Chairman of the Board
and Managing Director
Ⅳ Letter from Mr. Konsion C. Shah, Representative of Coordinat-
ion Council for North American Affairs, to Mr. David Dean, Chai-
rman of the Board and Managing Director of American Institute in
Taiwan.
April 10,1980
Mr. David Dean
Chairman of the Board
and Managing Director
American Institute in Taiwan
1700 North Moore Street
Arlington, VA 22209
Dear David:
I wish to acknowledge receipt of your letter dated March 7,1980
containing a proposed eightpoint amendment to the Agreement r-
elating to Trade in Cotton, Wool and Man-Made Fiber Textiles
and Textile Products dated June 8,1978 as amended, between our
two countries.
I am authorized by my Government to formally inform you that it
accepts the proposed amendment contained in your letter mention-
ed above and agrees that your letter and this letter constitute
an understanding between us regarding implementation of the Agr-
eement.
Sincerely,
(Signed)
Konsin C. Shah
Representative