P.O. Box 481
Station ”A”
Ottawa, Ontario
K1N 9K6

611-Tai
EPMT-1462
November 19, 1998

Mr. Shaw Wu Yu
Director
Economic Division
Taipei Economic and Cultural Office, Canada
45 O'Connor Street, Suite 1960
Ottawa, Ontario
K1P 1A4
Dear Mr. Shaw Wu Yu:
Further to our meeting on October 27, 1998 regarding the extens-
ion of the current Statement of Intent relating to certain text-
ile products exported from Taiwan to Canada, I wish to confirm
our offer to extend the agreement for one year, to December 31,
1999.
We look forward to your response. Please do not hesitate to co-
ntact our office if you have any questions concerning this matt-
er.
Yours sincerely,

[Signed]
S. J. Brereton
Director
Trade Controls Policy Division

November 27, 1998
Reference No. 98-0915 By Hand Delivery

Mr. Stephen Brereton
Director
Trade Controls Policy Division (EPM)
Export and Import Controls Bureau
Dept. of Foreign Affairs and International Trade
125 Sussex Drive
Ottawa, Ontario K1A 0G2

Dear Mr. Brereton:
This refers to your letter of November 19, 1998, your reference
611-Tai, regarding the Statement of Intent relating to the expo-
rt from Taiwan of textiles and clothing for import into Canada.
This is to confirm our concurrence with your proposal that the
current Statement of Intent, including all the terms and condit-
ions therein, be extended for a period of one year, until Decem-
ber 31, 1999.
This also reconfirms our discussion during the meeting on Octob-
er 27, 1998, that the said extension be accomplished by simply
exchanging letters and necessary documents; that an additional
clause shall be included in the letters expressing that should
my country become a member of the World Trade Organization (WTO)
before the end of 1999, the imports of textile and textile prod-
ucts from Taiwan to Canada will be governed by the rules and re-
gulations of WTO.

According to the telephone conversation with Ms. Marie B. O'Shea
of your office, on November 18, 1998, we are pleased to prepare
and attach herewith a draft copy of Annex I of the Statement of
Intent for the period from January 1, 1999 to December 31, 1999,
for your verification.

Please note that Annex I consists of agreement item, product co-
verage, restraint level, growth, swing, carry-over/carry forward
, combined flexibility, and conversion factor. It is prepared b-
ased on the same terms of the last Statement of Intent.

It Would be appreciated that the extensional process be complet-
ed at the beginning of December, since the Taiwan Textile Feder-
ation (TTF) is required to announce the quota information on or
before December 10 for next year's shipments.

Your kind cooperation is highly appreciated.

Sincerely yours,

[Signed]
Shawwu Yu
Director

c.c.:BOFT, 2nd Dept. (with copy of Mr. Brereton's letter)
TTF (with copy of Mr. Brereton's letter)

P.O. Box 481
Station ”A”
Ottawa, Ontario
K1N 9K6

611-Tai
EPMT-1532
December 14, 1998

Mr. Shaw Wu Yu
Director
Economic Division
Taipei Economic and Cultural Office, Canada
45 O'Connor Street, Suite 1960
Ottawa, Ontario
K1P 1A4

Dear Mr. Shaw Wu Yu:
I am writing in response to your letter of November 27, 1998, r-
egarding the extension of the current Statement of Intent relat-
ing to certain textile products exported from Taiwan to Canada.
We wish to confirm Annex 1 of the Statement of Intent for the p-
eriod January 1, 1999 to December 31, 1999. (We note from your
documentation that your figures differ inconsequentially from o-
ur calculations.)
We, therefore, agree that your letter of November 27, 1998 and
this letter constitute an extension of the current Statement of
Interest for one year beginning January 1, 1999. We would add
that, in the event Taiwan becomes a member of the World Trade O-
rganization (WTO) before the end of 1999, the imports of textil-
es and textile products from Taiwan to Canada will be governed
by the rules and regulations of the WTO.

I trust you find these arrangements to be satisfactory.

Yours sincerely,

[Signed]
S. J. Brereton
Director
Trade Controls Policy Division

ANNEX I - RESTRAINT LEVELS TAIWAN
GROUP I

(A) (B) (C)
Agreement Product Coverage 1999
Item Restraint
No. Category Short Description Level(unit)

1 1.0* Coats, jackets, rainwear 1,012,389
1a (Note 1) 1.2* Jackets, brushed or fleeced,
unlined
2 2.0 Winter outerwear 60,730
2a (Note 2) 2.0 Quilted shirt-like garments
with tailored collar, MBC
3 (Note 3) 3.0 Male casual & fine wear 115,406
- of which:
3a(Note 3) 3.1 Suits, MB; 38,450
3.3 Jackets & blazers, MB
4a 4.1* Suits & ensembles, WGC; 313,875
4.2* Jackets & blazers, WGC
4b (Note 4) 4.3* Dresses; 827,184
4.4* Skirts
5 5.0* Trousers, overalls & shorts 5,383,244
- of which:
5a 5.1* Trousers, MB; 2,633,996
5.4* Overalls & coveralls, MB;
5.5* Shorts, MB
7 7.0 Woven shirts, blouses & 2,179,738
similar articles
8 (Note 5) 8.0 Athletic wear, (k/c) shirts, 18,837,320
blouses & similar articles,
T-shirts & sweatshirts
- of which:
8a 8.1 k/c shirts, blouses & 3,429,187
similar articles
- of which:
8b 8.4* Athletic wear 923,386
9 9.0* Underwear 1,760,550
10 10.0 Sleepwear & bathrobes 1,899,833
11 11.0 Sweaters 6,039,059
11a 11.1 - of which, Sweaters, MB 2,200,760
12 12.0 Swimwear 1,131,389
13 13.0 Foundation garments 43,463
14 (Note 1) 14.0 Babies* garments 1,665,876
14b 14.2 of which, 166,589
Trousers, overalls & shorts
14c 14.3 of which, shirts, 166,589
blouses & similar articles
14d 14.4 of which, 166,589
T-shirts & sweatshirts
14e 14.5 of which, 166,589
Dresses & skirts
14f 14.6 of which, Sleepwear 583,056
14g 14.7 of which, Underclothing 166,589
14h 14.8 of which, Sweaters 166,589
14i 14.9 of which, Other garments 832,938


(D) (E) (F) (G) (H)
Carry-over/ Combined Conversion
Carry Flexibility Factor
Growth Swing Forward (E) & (F) (m2/unit)

0.7% 5% 10% (5%) 11% 4.0
2.4

1% 2% 6%(3%) 6% 3.5
6%(3%) 6% 2.7

0.63% 5% 10%(5%) 11% 4.4

0.63% 5% 10%(5%) 11% 4.4

0.75% 5% 10%(5%) 11% 4.4

0.7% 5% 10%(5%) 11% 3.2

0.6% 5% 10%(5%) 11% 1.9

0.6% 5% 10%(5%) 11% 1.9


0.5% 5% 10%(5%) 11% 1.7

0.5% 5% 10%(5%) 11% 1.8



0.5% 5% 10%(5%) 11% 1.8


0.5% 5% 10%(5%) 11% 1.8
0.2% 5% 10%(5%) 11% 1.0
0.2% 5% 10%(5%) 11% 3.5
0.5% 2% 6%(3%) 6% 1.4
0.5% 2% 6%(3%) 6% 1.4
0.2% 5% 10%(5%) 12% 1.5
0.2% 5% 10%(5%) 12% 1.5
0.5% 5% 10%(5%) 11% 1.5
0.5% 5% 10%(5%) 11% 1.5

0.5% 5% 10%(5%) 11% 1.5

0.5% 5% 10%(5%) 11% 1.5

0.5% 5% 10%(5%) 11% 1.5

0.5% 5% 10%(5%) 11% 1.5
0.5% 5% 10%(5%) 11% 1.5
0.5% 5% 10%(5%) 11% 1.5
0.5% 5% 10%(5%) 11% 1.5

* Includes extended fibre coverage.
Note 1: Item 1a, special swing from item 8 up to 295,736 units
Note 2: Item 2a, special swing from item 8 up to 700,000 units
Note 3: Cat. 3.2 includes extended fibre coverage; excludes HS
codes for children of categories 3.1 & 3.3
Note 4: Excludes Saris, WCC, woven, of subcategory 4.3
Note 5: Cat. 8.4 includes extended fibre coverage.
Note 6: Cat. 14 is expressed in baby garment units. Cat. 14.2,14
.3, 14.4, 14.5, 14.6, 14.7, 14.8 not to exceed 10% of a-
nnual restraint of Cat. 14. Cat. 14.6 not to exceed 35%
and Cat. 14.9 not to exceed 50%.


ANNEX I - RESTRAINT LEVELS TAIWAN
GROUP II

(A) (B) (C)
Agreement Product Coverage 1999
Item Restraint
No. Category Short Description Level(unit)

20 22 Nylon yarn; 1,234,427
(Note 1) 23 Polyester yarn;
24 Poly/cotton yarn;
(Note 2) 26 Artificial yarn,
including other yarns of
man-made fibres, not
otherwise designated a
category, of Headings
54.02, 54.04 to 54.06, 55.09,
55.11 and 56.04 to 56.06
25 25 Acrylic staple yarn 600,908
30 31 Combed wool fabric; 5,485,248
32 Cotton fabric;
34 Nylon fabric;
35 Ployester filament fabric;
36 Poly/cotton fabric
30a 31 - of which, 11,727
Combed wool fabric
30b 32 - of which, Denim fabric 569,857
30c 34 - of which, Nylon fabric 106,293
30d 35 - of which, 540,311
Polyester filament fabric
30e(Note3 3) 35 - of which, 77,591
Polyester filament fabric,
containing 85% or more by
weight of polyester
filaments
37a 37.1 Poly/rayon fabric 2,326,762
42a 42.1 Toilet & kitchen linen, 226,244
cotton terry, woven
43 43 Hosiery (PAR) 3,819,169
44 44 Work gloves & liners 802,354
(PAR)
45 45 Handbags (DZN) 310,214
46 46 Tablecloths 243,371


(D) (E) (F) (G) (H)
Carry-over/ Combined Conversion
Carry Flexibility Factor
Growth Swing Forward (E) & (F) (m2/unit)

3% 5% 10%(5%) 11% 2.22









5% 10%(5%) 11% 2.22
5% 5% 10%(5%) 11% 5.0




1% 5% 10%(5%) 11% 4.0

5% 5% 10%(5%) 11% 3.13
3% 5% 10%(5%) 11% 4.0
3% 5% 10%(5%) 11% 5.0

3% 5% 10%(5%) 11% 5.0




5% 5% 10%(5%) 11% 5.0
6% 5% 10%(5%) 11% 3.4

6% 5% 10%(5%) 11% 0.50
3% 5% 10%(5%) 11% 0.25

6% 5% 10%(5%) 11% 3.12
4% 5% 10%(5%) 11% 4.0

Note:No swing between products in Group I and products in Group
II.
Note 1: Excludes filament yarn of polyesters, partially oriented
, as described in subheading 5402.42
Note 2: Other than yarns solely of any single man-made fibre.
Note 3: Agreement Item 30e is a subrestraint of Agreement Item
30d.