A Letter from Mr. Shuhsi Hsu, Chinese Ambassador to Canada, to
Mr. J.F. Grandy, Canadian Assistant Deputy Minister, Departme-
nt of Finance,
November 3, 1965
Dear Mr. Grandy:
I have the honor to refer to recent discussions in Taipei betwe-
en representatives of the Governments of China and Canada conce-
rning exports of certain products from the Republic of China to
Canada.
As a result of these discussions, it is the understanding of the
Government of the Republic of China that, pursuant to the provi-
sions of the Long-Term Arrangement Regarding International Trade
in Cotton Textiles (hereafter referred to as “the Arrangement“
) the Government of the Republic of china will restrain exports
to Canada of the textile products indicated in the attached ann-
ex to the levels indicated therein during the year ending June
30, 1966. The levels set out in the annex to this letter will r-
eplace the levels set out in the annex to my letter to you of O-
ctober 5, 1964.
It is also the understanding of the Government of the Republic
of China that exports to Canada of rubber-soled footwear will be
restrained by the Government of the Republic of China to the le-
vel indicated in the attached annex.
It is the understanding of the Government of the republic of Ch-
ina that the Chinese and Canadian Governments shall consult with
each other on any question arising from the implementation of t-
his agreement. It is also understood that the Canadian Governme-
nt retains the right to request consultations regarding further
export restraints under the provisions of the arrangement, shou-
ld circumstances warrant this, and that the Government of the R-
epublic of China may, according to the provisions of Article 3
of the Arrangement, request consultations concerning the removal
or modification of export restraints established in this agreem-
ent should conditions in the Canadian market improve substantia-
lly.
Yours very truly.
(Signed)
Shuhsi Hsu
Ambassador
Mr.J.F. Grandy
Assistant Deputy Minister
Department of Finance
Ottawa
ANNEX
Restraints to be Applied by the Republic of China on Certain Ex-
ports to Canada During the year Ending June 30, 1966
────────────────────────────────
Cotton Fabrics Restraint Level
─────── ────────
Basic Level 605,000 sq.yds.
Less 1963-64 Overshipment
(1) 50,000 sq.yds.
────────
Effective Level 555,000 sq.yds.
Corduroy not to exceed
Basic Level 55,000 sq.yds.
Lesa 1964-64 Overshipment 2,500 sq.yds.
────────
Effective Level 52,500 sq.yds.
Woven Cotton Shirts
──────────
Basic Level 59,960 dozen
Less 1963-64 Overshipment
(2) 12,201 dozen
───────
Effective Level 47,759
Knitted Cotton Shirts (including sweatshirts)
───────────────────────
Basic and Effective Level 46,200 dozen
Cotton Sleepwear
────────
Basic Level 69,960 dozen
Rubber-soled Footwear
───────────
Basic Level 380,000 pairs
Less 1963-64 Overshipment
(3) 28,640 pairs
Less 1964-65 Overshipment
(4)
Trousers, Slacks and Shorts of Cotton or Rayon
───────────────────────
Basic and Effective Level 80,000 dozen
Cotton trousers, slacks and
shorts not to exceed 22,000 dozen
(1) The remaining 36,391 square yards of 1963-64 overshipment
will be deducted from the restraint level to apply during
the year ending June 30, 1967. The figure of 36,391 will be
reduced by whatever amount by which it is agreed that expo-
rts in the year ended June 30, 1965, were less than the ef-
fective restraint level for that period, i.e., 527,500 sqa-
re yards.
(2) The amount of 1963-64 overshipment to be deducted from the
restraint level to apply in the year ending June 30, 1967
is 4,201 dozen.
(3) The remainder of the 1963-64 overshipment, i.e., 28,640 pa-
irs, is to be deducted from the restraint level to apply in
the year ending June 30, 1967.
(4) If it is agreed that exports during the year ended June 30,
1965 were in excess of the effective restraint level, of 33
7,500 pairs, one-half of such overshipment shall be deduct-
ed from the restraint level to apply during the year ending
June 30, 1966, and the other half from the restraint level
to apply during the year ending June 30, 1967.
B Letter from Mr. J.F. Grandy, Canadian Assistant Deputy Minist-
er, Department of Finance, to Mr. Shuhsi Hsu, Chinese Ambassa-
dor to Canada.
Ottawa, November 12, 1965
His Excellency Shuhsi Hsu
Ambassador
Embassy of the Republic of China
201 Wurtemberg Street
Ottawa 2, Ontario,
Dear Mr. Ambassador,
I have the honor to acknowledge your letter of November 3rd co-
ncerning the restraints which your Government will maintain on
exports of certain products to Canada, and to advise you that t-
he Canadian authorities are in agreement with the understandings
as set out in your letter.

Yours very truly.
(Signed)
J.F. Grandy
Assistant Deputy Minister