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1.Signed on February 7,1991; Entered into force on February 7,1991.
1. Background
On January 28, 1986, the American Institute in Taiwan (AIT) and
the Coordination Council for North American Affairs (CCNAA) sig-
ned Guidelines for a Cooperative Program in the Agricultural Sc-
iences. This cooperation, undertaken pursuant to that agreement,
consists of a mutually beneficial program between the Economic
and Planning Department (EPD), Council of Agriculture (COA), Ex-
ecutive Yuan, the designated representative of CCNAA, and the E-
conomic Research Service (ERS), U.S. Department of Agriculture (
USDA), the designated representative of AIT, to en-hance agricu-
ltural commodity situation and outlook (S&O) analysis and basel-
ine reporting for the Taiwan area. The ERS outlook program prov-
ides timely, objective information on the major national and in-
ternational commodity markets and related agricultural topics f-
or use by USDA officials and the general public. Through this c-
ooperative program, the COA, with the assistance from ERS, will
institutionalize an S&O program that provides timely estimates
and forecasts on domestic and foreign supply, demand, and price
information for the major farm commodities and related topics.
Meeting this project goal will depend on organizing activities
at least initially around developing a computerized EPD/COA Inf-
ormation Management System. Such a system would organize acreage
, yields, production, stocks, imports, exports, and prices for
the major crops and livestock commodities and related informati-
on on policy parameters of the Taiwan area in a single, readily
accessible database. Agricultural statistics on the Taiwan area,
the ERS database on world trade, and U.S. agricultural statisti-
cs will be exchanged.
2. Program Goals
The primary goal of the project is to enhance EPD/COA's commodi-
ty situation and outlook analysis and reporting capability. The
project will set up a data and information clearinghouse for COA
and other users working on the commodity issues. Specific goals
A. Establishing an agricultural commodity production, supply, a-
nd demand database and positioning EPD/COA to serve as an ag-
ricult ur al information clearinghouse for the territory rep-
resented by CCNAA.
B. Strengthening market situation reporting and fore cas ting t-
echniques by building commodity models and supporting analyt-
ical and computerized information systems.
C. Publishing situation and outlook reports for major commoditi-
es, and channeling information therein into other Executive
Yuan offices and public commodity market news channels.
D. Establishing a long term baseline projection activity to sup-
port policy making and program management.
E. Enhancing COA's capacity to evaluate the effects of legislat-
ive proposals and policy changes on farm commodity markets,
domestic and international, and the budgetary impacts.
3. Project Duration Period
This cooperative project begins on February 7,1991, and ends
on December 31,1992.
4. Implementation and Coordination
This project shall be implemented and coordinated by the fol-
lowing four agencies. A multi-disciplinary approach will be
adopted by setting up a team of farm commodity economists, p-
olicy analysts, budget examiners, and computer specialists.
The subject matter cuts across the boundary of each discipli-
ne, and analysts working as a team would complement each oth-
A. Project Leading Agencies:
(1) Economics and Planning Department, Council of Agricultu-
re, Executive Yuan, the designated representative of CC-
Project leader: Wu-hsiung Chen.
(2) Commodity Economics Division, Economic Research Service,
U.S. Department of Agriculture, the designated represen-
tative of AIT.
Project leader: Patrick M.O'Brien
B. Project Supporting Agencies:
(1) Office of International Cooperation and Development (OI-
(2) International Cooperation Division, Secretariat, Council
of Agriculture.
The project will start with the development of a database and
focus on chicken eggs and peanuts in 1991; and on rice and c-
itrus in 1992. The first two commodity reports are expected
to be ready for publication in December 1991. Also, the comp-
uterization of the COA Information Management System, includ-
ing the Local Area Network, will begin in July 1991 along wi-
th commodity models, baseline coordination, and policy analy-
5. Areas of Cooperation
A. General Program Development
The general program will focus on joint project design and p-
lanning, and timely, effective delivery of proposed outputs .
B. Training of Commodity Economists
Technical assistance and training is designed to enhance the
existing commodity analysis and reporting skills of EPD/COA
staff. The initial training program can take place in the te-
rritory represented by CCNAA, with follow-up training in the
territory represented by AIT.
C. Database Development; and Software Transfer
ERS will provide computer specialists to assist the establis-
hment of database system in the territory represented by CC
NAA, and will transfer the associated software, including the
training on the use of the software and the development of
the database. The format for the data transfer will vary from
database to database and over time as the COA's computing ca-
pacity changes. ERS will also assist EPD/COA in converting d-
atabases from English into Chinese.
D. Information Exchange
The information exchange will include hard copies of regular
EPD/COA and ERS reports and related information published el-
sewhere in the USDA. They will be transferred in hard copy or
machine readable forms for computer use.
E. Hardware Acquisition and Local Area Network
A move toward more use of microcomputer technology could both
speed up S&O production and strengthen product quality witho-
ut requiring additional costly mainframe computing capacity
in EPD/COA. ERS will provide technical assistance to evaluate
alternative microcomputer hardware options. One of the optio-
ns to be explored is the development of a Local Area Network
of IBM-compatible PC's equipped for both data and word proce-
F. Publication Assistance
ERS will assist EPD/COA in establishing a system of publishi-
ng the final S&O products.
6. Funding and Responsibilities Assumed
A. AIT, through its designated representative, ERS, agrees to
(1) Assign an agricultural economist to serve as project l-
eader to jointly supervise and conduct the cooperative
(2) Assign other professionals and clerical personnel, as
needed, to collaborate with EPD/COA in conducting the
(3) Provide necessary office space, office equipment, and
supplies for all ERS personnel and visiting COA employ-
ees assigned to the project;
(4) Pay travel and per diem expenses of the above ERS empl-
oyees; and
(5) Assist in defraying 40 percent of the direct project c-
osts indicated in this memorandum of cooperation.
B. CCNAA, through its designated representative, EPD/COA, ag-
rees to:
(1) Assign an agricultural economist to serve as project l-
eader to jointly supervise and conduct the cooperative
(2) Assign other professionals and clerical personnel, as
needed, to collaborate with ERS/USDA in conducting the
(3) Provide necessary office space, office equipment, and
supplies for all EPD/COA personnel and visiting ERS em-
ployees assigned to the project;
(4) Pay travel and per diem expenses of the above COA empl-
oyees; and
(5) Assist in defraying the cost of the project by reimbur-
sing AIT for 60 percent of the direct project costs in-
dicated in this memorandum of cooperation, not to exce-
ed US$100,000 for the period of February through June 1
991; not to exceed US$250,000 for the period of July 19
91 to June 1992; and not to exceed US$150,000 between
July and December 1992.
7. Progress Reports and Review Meetings
During the project period, the leading agencies will circula-
te reports on project progress and major findings to partici-
pating agencies. Program leaders and project supporting agen-
cies shall meet to review this program of cooperation. This
memorandum of cooperation may be amended at any time by mutu-
al. agreement of AIT and CCNAA in writing, or terminated by
either party upon 60 day's notice in writing to the other pa-
8. Mutual Agreement
A. Computer programs written and databases developed under this
project, the cost of which is reimbursed by CCNAA, are and s-
hall remain the property of CCNAA's designated representative
, EPD/COA, but will be available for use by AIT's designated
representative, ERS.
B. Specific products and reports are as follows:
(1) Taiwan area commodity reports (the Chinese version will be
prepared by EPD/COA, and the English version by ERS);
(2) ERS "Market Profile" report (in English, to be prepared by
(3) An S&O operational handbook (in English, to be prepared by
ERS as a necessary training material for staffs at COA);
(4) Documentation of databases and economic models developed.
C. Project reports and outputs will be submitted to the project
D. ERS will continue to provide the international database to t-
he EPD/COA beyond the conclusion of this cooperative program.
E. Cooperation in enhancing commodity S&O reporting can best be
facilitated through the existing agreement jointly signed by
the CCNAA and the AIT and managed by COA USDA as their repre-
Chia-Sheng Pan
Director, Economic Division
Coordination Council for
North American Affairs
Date: Feb. 7, 1991
Clarke N. Ellis
Deputy Managing Director
American Institute in Taiwan
Date: 7 Feb. 1991