I Letter from Dr. Fredrick F. Chien, Representative, Coordinati-
on Council for North American Affairs, to Mr. David Dean, Cha-
irman of the Board and Managing Director, American Institute
in Taiwan.
October 9, 1986
Mr. David Dean
Chairman of the Board and
Managing Director
American Institute in Taiwan
1700 N. Moore Street, 17th Floor
Arlington, VA 22209
Dear Mr. Dean :
I have the honor to refer to our recent discussions concerning
the use by the Coordination Council for North American Affairs
(CCNAA) of export performance requirements affecting investme-
nt in the automotive sector. This letter sets forth measures
that the CCNAA has decided to undertake concerning such requi-
rements and their use.
Effective on the date of this letter, the CCNAA will not impo-
se any export performance requirements in any future or pendi-
ng investment applications for initial direct foreign investm-
ent in the automotive sector.
Applications submitted to the Investment Commission of the Mi-
nistry of Economic Affairs by the existing automotive firms f-
or capital increase or equipment expansion resulting in produ-
ction increase exceeding the current commitment level will be
accorded the same treatment as above.
The need for continued export performance requirements applyi-
ng to any investment in the automotive sector which has been
approved on or before the date of this letter will be conside-
red along with the general review of the Automotive Industrial
Development Plan which the CCNAA intends to complete before t-
he end of June 1987. CCNAA is committed to eliminating the ex-
port performance requirement provisions from the Automotive I-
ndustrial Development Plan at that time. The existing automot-
ive firms, which are currently subject to the export performa-
nce requirements, will be notified to apply for waivers of su-
ch requirements and such waivers will be granted automatically
.
It is our understanding that the foregoing measures are recip-
rocally conditioned upon the commitments by your side to term-
inate the investigation under section 307 of the U.S. Trade a-
nd Tariff Act of 1984 concerning export performance requireme-
nts in the automotive sector on the part of our side.
Sincerely yours,
[Signed]
Fredrick F. Chien
Representative
II Letter from Mr. David Dean, Chairman of the Board and Managi-
ng Dircetor, American Institute in Taiwan, to Dr. Fredrick F.
Chien, Representative, Coordination Council for North Americ-
an Affairs.
October 9, 1986
Dr. Fredrick F. Chien
Representative
Coordination Council for
North American Affairs
5161 River Road
Bethesda, Maryland 20816
Dear Dr. Chien :
I have the honor to acknowledge your letter of today's date whi-
ch reads as follows :
"Dear Mr. Dean :
I have the honor to refer to our recent discussions concerning
the use by the Coordination Council for North American Affairs (
CCNAA) of export performance requirements affecting investment
in the automotive sector. This letter sets forth measures that
the CCNAA has decided to undertake concerning such requirements
and their use.
Effective on the date of this letter, the CCNAA will not impose
any export performance requirements in any future or pending in-
vestment applications for initial direct foreign investment in
the automotive sector.
Applications submitted to the Investment Commission of the Mini-
stry of Economic Affairs by the existing automotive firms for c-
apital increase or equipment expansion resulting in production
increase exceeding the current commitment level will be accorded
the same treatment as above.
The need for continued export performance requirements applying
to any investment in the automotive sector which has been appro-
ved on or before the date of this letter will be considered alo-
ng with the general review of the Automotive Industrial Develop-
ment Plan which the CCNAA intends to complete before the end of
June 1987. CCNAA is committed to eliminating the export perform-
ance requirement provisions from the Automotive Industrial Deve-
lopment Plan at that time. The existing automotive firms, which
are currently subject to the export performance requirements, w-
ill be notified to apply for waivers of such requirements and s-
uch waivers will be granted automatically.
It is our understanding that the foregoing measures are recipro-
cally conditioned upon the commitments by your side to terminate
the investigation under Section 307 of the U.S. Trade and Tariff
Act of 1984 concerning export performance requirements in the a-
utonzotive sector on the part of our side.
Sincerely, Dr. Fredrick Chien, CCNAA. "
In reply, I am pleased to confirm the arrangements set forth in
your letter under reference and to state that our side will ter-
minate the case on export performance requirements on your side
under Section 307 of the U.S. Trade and Tariff Act of 1984.
Sincerely,
[Signed]
David Dean
Chairman of the Board
and Managing Director