September 3, 1986
Dr.Fredrick F. Chien
Representative
Coordination Council for
North American Affairs
5161 River Road
Bethesda, Maryland 20816
Dear Dr. Chien :
In September 1981, representatives of producers of soybeans, co-
rn, wheat and barley in the United States signed an agreement w-
ith representatives of importers of those commodities in Taiwan.
Under the terms of that grains agreement, which had a duration
of five years beginning on July 1, 1981, Taiwan importers agreed
to purchase from the United States during the life of the agree-
ment a minimun of 4.8 million metric tons of soybeans, 8.6 mill-
ion metric tons of corn, 2.85 million metric tons of wheat and 9
00,O0O metric tons of barley.
Representatives of United States producers of soybeans, corn, w-
heat, and barley and representatives of Taiwan importers of tho-
se grains have held discussions regarding the renewal or renego-
tiation of the agreement concluded in 1981 for an additional fi-
ve years, from July 1, 1986 through June 30, 1991. It will, of
course, be the responsibility of the representatives of the exp-
orters and importers to establish the annual minimum level of i-
mports into Taiwan of the grains which are covered in the new a-
greement.
The American Institute in Taiwan strongly supports the renewal
of the 1981 grains agreement for an additional five years and a-
lso understands that the Coordination Council for North American
Affairs supports the renewal of the 1981 grains agreement in ac-
cordance with the principles of mutual benefits to the Taiwan i-
mporters and U.S. exporters of grains, having regard to market
forces, competitiveness and the special characteristics of the
world grains market.
Exports of United States agricultural commodities, particularly
grains, have been a highlight of trade between the United States
and Taiwan in recent years. The American Institute in Taiwan al-
so acknowledges and appreciates Taiwan's efforts to redress the
trade imbalance with the United States by such means as sending
special purchasing missions to the United States, tariff reduct-
ions, support of AIT's commercial presence in Taiwan, and spons-
oring exhibitions of United States products.
If you are in agreement that renewal of the five-year grain agr-
eement is in the interest of both sides your signature to this
letter will constitute an endorsement by the American Institute
in Taiwan and the Coordination Council for North American Affai-
rs of the desirability of concluding such an agreement.
Sincerely,
[Sigend]
David Dean
Chairman of the Board
and Managing Director
[Signed]
Fredrick F. Chien
Representative
Coordination Council for
North American Affairs
5161 River Road
Bethesda, Maryland 20816