As a result of consultations between the American Institute in
Taiwan (AIT) and the Coordination Council for North American Af-
fairs (CCNAA) in Washington December 15-18, 1992, pursuant to p-
aragraph 4 (c) (iv) of the exchange of letters dated December 1
and 11,1992 (the "Letters"), the two parties agree to the follo-
wing partial restoration of swing rates, growth rates and quota
levels specified in the Letters.
1. The authorities represented by CCNAA agree to seriously cons-
ider and endeavor to implement the following five measures u-
nder the law of the territory represented by CCNAA to discou-
rage illegal transshipments:
A. Take actions to increase the severity of penalties, inclu-
ding the possibility of criminal penalties, available to
the public prosecutor's office for action involving unlaw-
fiul transshipment.
B. Examine, in order to inform AIT, the possibility of stren-
gthening Customs control at Taiwan ports to prevent switc-
hing of bills of lading in perpetration of fraudulent sch-
emes to make textile products that originated elsewhere to
appear as having originated in the territory represented
by CCNAA.
C. Initiate more investigations on reasonable suspicion of i-
llegal transshipment.
D. Offer rewards for information on illegally transshipped t-
extiles.
E. Conduct more in-depth investigations for the purpose of u-
ncovering accomplices and initiating prosecutions.
2. Restoration of base levels, swing rates and growth rates (wh-
ere applicable), set forth in Schedule I hereto, shall only
apply to the 1993 agreement year, effective January 1, 1993.
Base levels, swing rates and growth rates for 1994-1995 shall
remain, for the present, at the levels and rates specified in
the Letters, unless agreed otherwise. Consultations to review
the 1994 levels and rates are to be held before July 1993, a-
nd to review the 1995 levels and rates shall be held in mid-1
994, pursuant to paragraph 4 (c) (iv) of the Letters.
3. The swing rate for category 640 for 1992 only shall be resto-
red to 4 percent.
The provisions of this Memorandum of Understanding shall be app-
lied upon signature until an agreement incorporating its terms
is effected by an exchange of letters.
(Signed)
For AIT
Raymond J. Sander
Washington, December 18,1992
(Signed)
For CCNAA
Chia Sheng Pan
Schedule I
For 1993, base levels and swing rates shall apply as follows:
Category New 1993 Limit Restored
1993 Swing
347/8 1,072,919 6.0%
347/8W 1,072,919 6.0%
359C/659C 1,458,273 7.0%
633/4/5 1,634,440 1.0%
633/4 959,317 1.0%
635 850,077 1.0%
638/9 6,578,589 5.0%
640 1,058,909 0.0%
640Y 500,000 0.0%
642 778,299 7.0%
659S 1,689,967 7.0%
645/6 4,138,498 0.0%