«_.._„.. **%«^F.»«i-»i^. rN». CONFIDENTIAL GENERAL AGREEMENT ON ; TEX. SB/1201* TARIFFS AND TRADE 7 March 1986 Surveillance Body

ARRANGEMENT REGARDING INTERNATIONAL TRADE IN TEXTILES

Notification under Article 4:4

Bilateral Agreement between the United States and Indonesia

Note by the Chairman

Attached is a notification received from the United States of a bilateral agreement with Indonesia, concluded under Article 4 for the period 1 July 1985 to 30 June 1988. Also included is an administrative arrangement with respect to certain folklore-type products.

The previous agreement and modifications are contained in COM.TEX/SB/834, 950, 1023 and 1061. * English only/Anglais seulement/Ingles solamente

86-0336 UNITED STATES TRADE REPRESENTATIVE 1-3 AVENUE DE UA PAIX 1202 GENEVA, SWITZERLAND Telephone : 32 09 70 February 27, 1986

The Honorable Ambassador Marcelo Raffaelli Chairman, Textiles surveillance Body GATT Rue De Lausanne 154 1211 Geneva Dear Mr. Chairman: Pursuant to the provisions of paragraph 4 of Article 4 of the Arrangement Regarding International Trade in Textiles, I am instructed by my government to inform the Textiles Surveillance Body of a new three-year , and man-made agreement between the Government of the United States of America and the Government of Indonesia. An Administrative Arrangement with respect to certain folklore type products was also concluded.

The new agreement, which runs from July 1, 1986, through June 30, 1988, was negotiated to deal with proDlems of market disruption, or risk tnereof, on the one hand while ensuring the orderly development and expansion of trade on the other. Two group limits have been established, as well as a number of additional specific limits. New base levels are in almost ail cases more than 6 percent aoove previous limits «ft the roll-back levels. o* Growth is 6 percent for Group I and all categories except wool sweaters (category 445/446) which is set at 1 percent. The Group II growtn rate is set at 10 percent, with 1 percent for the wool subgroup. Swing is set at 7 percent for cotton and mmf products and 5 percent for wool. Carryover/carryforward is 11/6 percent. An additional five percent of the quotas for categories 336, 341, 641 and 648 is provided for folklore-type products when made from hand loomed fabrics. The products concerned are described as "traditional folklore" products in the bilateral agreement (para 4B) and in the -2-

Administrative Arrangement concerning these products. Tnese products are not considered as falling outside the Arrangement in the sense of Article 12.3, however, because they are machine made for commercial sale. Tne additional 5 percent quota is, rather, a recognition of Indonesian interest in these products when made from traditional nand loomed fabrics. Data to help the secretariat in developing a fact sheet is being provided separately. Copies of the bilateral agreement and of the Administrative Arrangement are enclosed.

Enclosure: (As stated) EMBASSY OF THE UNITED STATES OF AMERICA Jakarta, September 25JT igfc5 '

Ho. 830

Excellency: I have the honor to refer to the Arrangement regarding International Trade in Textiles (hereinafter referred to as the Arrangement), dene at Geneva on December 20, 1973, as es-«cec by the Protocol on December 22, 19S1. Z also refer to discussions between representatives of the Government of Indonesia and the Government of the United States of America in Denpasar, Indonesia frcn June 24-2S, 19S5, concerning Cotton, Wool and Man-Mace Fiber Textile and Textile Products of Indonesia ere— crtec tc the United Stages* As a result ox these discussions, I propose on behalf of the Government of the United States, under Article 4 of the Arrangement, the following agreement relating to Trade in Cotton, Wool and Man-Made Fiber Textiles and Textile Products between the Government of Indonesia and the Government of the United States.

AGREEMENT TERM 1. The term of this Agreement will be the period from July 1, 1985 through June 30, 1988. Each "agreement period" shall be a twelve-month period

His Excellency Prof. Dr. Mochtar Kusunaatmadja, Minister for Foreign Affairs, Republic of Indonesia, Jakarta. se?*-*" m - 2 -

from July 1 of a given year to June 30 of the following year. 2. Textiles and textile products covered by this Agreement are those set forth in Annex A. Tops, , , made-up articles, garments, and other textile manufactured products (being products which derive their chief characteristics from their textile components) of cotton, wool and man-made in combination represent either the chief value of the fibers of 50 percent or more by weight (or 17 percent or more by weight of wool) of the products, are subject to this Agreement. CLASSIFICATION 3. (A) For. the purposes of this Agreement, textile products shall be classified as cotton, wool, or man-made fiber textiles If wholly or in chief value of any of these fibers. Any products covered by Paragraph 2 but not in chief value of cotton, wool, or man-made fiber shall be classified as: (I) Cotton textiles, if the cotton component equals or exceeds 50 percent by weight of all component fibers or if the cotton component with wool and/or man-made fibers in the Agreement equal or exceed 50 percent by weight of the component fibers and the cotton - 3 -

component equals or exceeds the weight of each of the total wool and/or total man-made fiber components; (II) Wool textiles if not cotton, and wool exceeds 17 percent by weight ;-v« of all component fibers; and (III) Man-made fiber textiles, if man-made fiber components equal or exceed 50 percent by weight of all m component fibers or if the r.nt man-made fiber components in combination with cotton and/or II wool in the aggregate equal or exceed 50 percent by weight of the component fibers and the man-made fiber component exceeds the weight i-t of the total wool and/cr total U M cotton component. S3 (B) Textiles and textile products covered by i this Agreement shall be classified in two groups, as follows: (I) Group I: All specific limit categories and part categories listed in Annex B. w (II) Group II: All categories and part categories listed in Annex C. (C) The system of categories and the rates of - 4 -

conversion into square yards equivalent listed in Annex A shall apply in implementing this Agreement. (D) For purposes of computing limits and charges to limits the rates of conversion for individual categories set out in Annex A shall be applied. (E) For the purposes of this Agreement, the categories listed below are merged and treated as single categories as indicated: 347,348 347/348 445,446 445/446 645,646 645/646 GROUP AND SUB-GROUP AND SPECIFIC LIMITS (A) Commencing with the first agreement period and during the subsequent term of this Agreement, the Government of Indonesia shall limit annual shipments to the United States of Cotton, Wool, and Man-Made Fiber Textiles and Textile Products of Indonesia to the group limits, sub-group limits and specific limits set out in Annexes B and C. The group and specific limits may be adjusted in accordance with Paragraph 5. The sub-group limit may be adjusted in accordance with Paragraph 5(B) through 5(D).

(B) Notwithstanding Paragraph 4(A), commencing with the first agreement period and during - 5 -

the subsequent term of this Agreement, the Government of Indonesia may export an additional five (5) percent to the United States of traditional folklore products such as , Ikat and Kerawang made from hand-loomed fabrics in Categories 336, 341, 641 and 648 of the unadjusted specific limit for the corresponding category. FLEXIBILITY ADJUSTMENTS (A) (I) The group limits and specific limits set out in Annexes B and C do not include any adjustments permitted under Paragraph 5. (II) During any agreement period, either group limit set out in Annex B and C may be e'xceeded by not more than seven (7) percent swing, provided that a corresponding reduction in square yards equivalent is made in other group limits during the same agreement period. Within the applicable group limits, any category or product subject 'to a specific limit may be increased by not more than seven (7) percent swing, or not more than five (5) percent swing for wool categories. (B) (I) The extent to which any group or

sub-group limit set out in Annexes B - 6 -

and C may be exceeded in any agreement period by carryforward (borrowing a portion of the corresponding group or sub-group limit from the succeeding agreement period) and/or carryover (the use of any unused yardage (shortfall) of the corresponding group or sub-group limit for the previous agreement ?-.' period) is eleven (11) percent, of which carryforward shall not constitute more than six (6) percent. (II) No carryover shall be available for application in the first agreement period. No carryforward shall be available for application in the final agreement period. (C) (I) For purposes of the Agreement, a i shortfall in a group occurs when exports -of textiles or textile products from Indonesia to the United States during any agreement period are below the applicable group limit as set out in Annexes B and C, or in the case of any group limit decreased pursuant to Paragraph 5, when such exports are below the group limit as decreased. (II) For the purposes of the Agreement, a shortfall in a specific limit or - 7 - »•• -•a SE1;* '•J2

sub-group occurs when exports of textiles or textile products from Indonesia to the United States during any agreement period are below the applicable group limit and any specific limit or sub-group as set out in Annexes B and C or, in the case of any limit decreased pursuant to Paragraph 5, when such exports are below the specific limit or sub-group limit as decreased. (0) The Government of the United States may apply flexibility under Paragraphs 5(B) and 5(C) to specific limits on any category or product whenever that adjustment appears appropriate to facilitate the flow of trace and the sound administration of the Agreement. To the extent that such adjustments are actually utilized they will be implemented by means of carryover, swing and carryforward in that order. Any unused flexibility will be re-credited to the donor limit. This procedure will not prejudice the outcome of any consultations between our governments concerning the amounts of flexibility available.

CONSULTATION MECHANISM (A) In the event that the Government of the United States of America believes that - 8 -

imports from Indonesia listed in Annex A and classified in any category or product not covered by specific limits are, due to market disruption or real risk thereof, threatening to impede the orderly development of trade between the two countries, the Government of the" United States of America may request consultations with the Indonesian Government with a view to easing or avoiding such market disruption or the real risk thereof. The Government of the United States will provide the Government of Indonesia at the time of the i request with a detailed and factual statement of reasons for its request for consultations which, in the view of the Government of the United States, demonstrates:

(1) The existence of market disruption, or the real risk thereof,'and

(2) The role of exports from Indonesia in that disruption or real risk thereof.

(B) The Government of Indonesia agrees to consult with the Government of the United States of America within 30 days of receipt of the request for consultations. Both governments agree to make every effort to reach agreement on a mutually satisfactory

I - 9

resolution of the issue within 90 days of the receipt of such request, unless this period is extended by mutual agreement. (C) During that 90-day period, the Government of Indonesia agrees to hold its exports to the United States in the category or product concerned to a level no greater than 35 percent of the amount entered, as reported in U.S. General Import Statistics, during the latest twelve month period for which data are available at the time of the request for consultations. (D) If no mutually satisfactory solution is reached during the 90-day consultation period, the Government of the United States of America may establish annual specific limits for shipments of cotton, wool, and man-made fiber textiles and textile products in the category, part-category or product concerned for the duration of the Agreement, in accordance with Paragraph 6(E). The amount will not be less than the amount entered in that category, part-category or product, as reported in U.S. General Import Statistics, during the first 12 of the most recent 14 months preceding the date of the request for consultations was made, plus 15.5 percent for cotton and - 10 -

man-made fiber product categories and six (6) percent for wool product categories. In the event that no mutually satisfactory solution is reached, both governments further agree to make every effort to achieve agreement during subsequent consultations. The first term of any specific limit established under Sub-paragraph (D) will begin on the first day following the conclusion of the 90-day consultation period and end on the last day of the agreement period in which the specific licit was established. If a specific limit is established during an agreement period, that limit and any applicable swing or carryforward will be prorated to correspond to the period of time remaining in the current agreement period. Carryover will not be available in the first agreement period for which a specific limit is established under Paragraph 6(D). Swing for specific limits established under Sub-paragraph 6(D) will be available as set out in Sub-paragraph 5(A)(II). For each remaining agreement period any specific limit will be increased by six (6) percent - 11 -

per agreement period in the case of cotton and man-made fiber product categories and by one (1) percent in the case of wool categories. OVERSHIPMENT CHARGES 7. (A) Products of Indonesia exported in excess of authorized limits in any agreement period may be denied entry into the United States. Any such shipments denied entry, may be permitted entry into the United States and charged to the applicable limit in the succeeding agreement period. (B) Products of Indonesia shipped in excess of applicable limits in any agreement period will, if allowed entry into the United States during that agreement period, be charged to the applicable limit in the succeeding agreement period. (C) Any action taken pursuant to Sub-paragraphs 7(A) and 7(B) above, will not prejudice the rights of either side regarding consultations. SPACING PROVISIONS 8. The Government of Indonesia shall use its best efforts to space exports to the United States within each category or product evenly throughout each agreement period, taking into consideration normal seasonal factors. U.S. ASSISTANCE IN IîiPLEMENTATION OF THE LIMITATION PROVISIONS 9. The Government of Indonesia shall.administer its export control system under this Agreement. The - 12 -

Government of the United States may assist the Government of Indonesia in implementing the limitation provisions of this Agreement by controlling imports of textiles and textile products covered by this Agreement.

EXCHANGE OF DATA 10. (A) The Government of the United States shall promptly supply the Government of Indonesia with data on monthly imports of cotton, man-made fiber, and wool textiles and textile products into the United States from Indonesia. (B) The Government of Indonesia shall promptly supply the Government of the United States with data on monthly exports of cotton, man-made fiber, and wool textiles and textile products from Indonesia to the United States. (C) Each government agrees to promptly supply any other available statistical data necessary to the implementation of this Agreement requested by the other government. MUTUALLY SATISFACTORY ADMINISTRATIVE ARRANGEMENTS 11. Mutually satisfactory administrative arrangements or adjustments may be made to resolve minor problems arising in the implementation of this Agreement, including differences in points of procedure or operation. CONSULTATION ON IMPLEMENTATION QUESTIONS 12. The Government of the United States and the Government of Indonesia agree to consult upon the - 13 -

/ / request of the other, on any question arising in the implementation of this Agreement. RIGHT TO PROPOSE REVISIONS TO THE AGREEMENT "13. The Government of the United States and the Government of Indonesia may at any time, including the period following the establishment of any successor to the current arrangement, propose revisions in the terms of this Agreement. Each agrees to consult promptly with the other about such proposals with a view to making such revisions to this Agreement, or taking such other appropriate action as may be mutually agreed upon.

CONSULTATIONS IN CASE OF INEQUITY VIS-A-VIS A THIRD COUNTRY 14. If the Government of Indonesia considers that, as a result of limitations specified in this Agreement, it is being placed in an inequitable position in relation to a third country, the Government of Indonesia may request consultations with the Government of the United States with a view to taking appropriate remedial actions, such as a reasonable modification of this Agreement.

ARTICLE 3 PROCEDURES 15. For the duration of this Agreement, the Government of the United States shall not invoke the procedures of Article 3 of the Arrangement to request restraint on the exports of cotton, wool and man-made fiber textiles and textile products covered by this

'/-* - 14 -

Agreement to the United States. The Government of the United States and the Government of Indonesia reserve their rights under the Arrangement with respect to textiles and textile products not subject to this Agreement. VISA SYSTEM 16. (A) Both governments agree to maintain the current Visa System. (B) In conformity with Article 12, Paragraph (3) of the Arrangement, and except as provided for by Paragraph 4(B), this Agreement shall not apply to exports of handlcom fabrics of the cottage industry of Indonesia, or handmade cottage industry products made of such handloom fabrics in Indonesia, or to folklore handicraft textile products

products are properly certified under mutually satisfactory arrangement to be established between the two governments pursuant to Paragraph 11 of this Agreement. (C) Export of cotton, wool and man-made fiber textile products in shipments individually valued at less than 250 dollars shall not be charaed to the limits of this Agreement. - 15 -

PROVISION FOR TEXTILE AGREEMENT HARMONIZED COMMODITY CODE (A) Both governments recognize that adoption by the Government of the United States of the Harmonized Commodity Code will result in some changes in the United States Category System of textile products as presently covered by this Agreement. If such changes are made during the term of this Agreement, the Government of the United States and and the Government of Indonesia will consult with the view of reaching a satisfactory resolution of issues concerning categories covered by this Agreement. The Government of Indonesia recognized that should there be no resolution in such consultations, the Government of the United States reserves its rights to make such adjustments to Annexes A and B as necessary to bring it into conformity with the new category system and with the Harmonized Commodity Code. The intent of this conversion on the part of the United States Government will not be to diminish overall trade with Indonesia. (B) Consultations under this provision shall be conducted no later than 90 days before final adoption of the Harmonized Commodity Code by the Government of the United States.

FRAUD AND CIRCUMVENTION

(A) Both governments shall take actions as are necessary to prevent circumvention of this Agreement. - 16 -

(B) Each government will consult within 60 days upon receipt of a request for consultations. (C) With regard to fraud and circumvention, each government agrees to supply to the other government any information within its possession which it reasonably believes to be necessary for the enforcement of this Agreement.

RIGHT TO TERMINATE THE AGREEMENT 19. Either government may terminate this Agreement, effective at the end of an agreement period, by written notice to the other government, to be given at least 90 days prior to the end of such agreement period. If the foregoing conforms with the understanding of the Government of Indonesia this note and Your Zxzsllsr.cy s nczs cz csnzirmazicn on behalf oz une Government of Indonesia shall constitute an Agreement between our two governments.

Accept, Excellency, the assurances of my highest consideration.

r.:a$o±dr.idge

Enclosures: Annexes A, B, C - 17 -

ANNEX A

CONVERSION UNIT OF CATEGORY DESCRIPTION FACTOR MEASURE 300 Carded 4.6 LB. 301 Conbec 4.6 LB. --WOOL— 400 Tops and 2.0 LB. «MAN-MADE FIBER— 600 Textured 3.5 LB 601 Continuous 5.2 LB Cellulosic 602 Continuous 11.6 LB Noncsllulosic 603 Spun Cellulosic 3.4 LB 604 Spun Noncellulosic 4.1 LB 605 Other Yarns 3.5 LS —FABRIC— 310 Ginghan 1.0 SYD 311 Velveteen 1.0 SYD 312 1.0 SYD

313 Sheeting 1.0 SYD 314 1.0 SYD

315 Printcloth 1.0 SYD

316 Shirtings 1.0 SYD 317 and 1.0 SYD 318 Yarn-Dyed 1.0 SYD

319 Duck 1.0 SYD 320 Other Fabrics, N.K. 1.0 SYD - 18 -

/ •y

—WOOL— 410 Woolens & Wors ted 1.0 SYD 411 Tapestries & 1.0 SYD

Upholstery 425 Knit 2.0 LB. 429 Other Fabrics 1.0 SYD

—MAN-MADE FIBER—

610 Continuous 1.0 SYD Cellulosic N.K.

611 Spun Cellulosic, 1.0 SYD N.K.

612 Continuous Non- 1.0 SYD Cellulosic, N.K.

613 Spun Non-Cellulosic 1.0 SYD N.K. 614 Other Fabrics, N K . 1.0 SYD 625 Knit 7.8 LB. 626 & Tufted 1.0 SYD 627 Specialty 7.8 LB. APPAREL —COTTON — 330 Handkerchiefs 1.7 D2. 331 Gloves 3.5 DPR 332 Hosiery 4.6 DPR

333 Suit-Type Coats, 36.2 DZ. M and B 334 Other Coats, M and 41.3 DZ. B

335 Coats, W, G & I 41.3 DZ. - 19 -

/ 336 Dresses (Incl. 45.3 DZ. Uni forms)

337 Playsuits, Sun- 25.0 DZ. suits, wash- suits, creepers

338 Knit Shirts (Incl. 7.2 DZ. T-Shirts, Other & Sweatshirts) H and B

339 Knit Shirts & 7.2 DZ. Blouses (Incl. T-Shirts, Other, & Sweatshirts), W, G and I 340 Shirts, N.K. 24.0 DZ. 341 Blouses, N.K. 14.5' DZ. S.< i r w s i / . ô DZ. 345 Sweaters 36.8 DZ. 347 Trousers, Slacks, 17.8 DZ. $ & Shorts (Cuter), M and B

348 Trousers, Slacks 17.8 DZ. & Shorts (Outer), W, G and I

349 Brassieres, Etc. 4.8 DZ. 350 Dressing Gowns, 51.0 DZ. Incl. Bathrobes

& Beach Robes, Lounging Gowns, Housecoats, & Dusters 7 - 20 -

351 Pajamas & Other 52.0 DZ. Nightwear 352 Underwear (Incl. 11.0 DZ. Union Suits) 353 Down & Feather- 41.3 DZ. filled Coats, Jackets and Vests»

V7. G and I

359 Other Apparel 4.6 LB. —WOOL—

431 Gioves 2.1 DPR 432 Hosiery 2.8 DPR 433 Suit-Type Coats, 36.0 DZ. M and B 434 Other Coats, M and 54.0 DZ. B 435 Coats, W, G & I 54.0 DZ. 436 Dresses 49.2 DZ. 438 Knit Shirts & '15.0 DZ. Blouses 440 Shirts £> Blouses, 24.0 DZ.

.N.K. 442 Skirts 18.0 DZ. 443 Suits, M and B 54.0 DZ. 444 Suits, W, G & I 54.0 DZ. 445 Sweaters, M and B 14.88 DZ. 446 Sweaters, W, G & I 14.88 DZ. 447 Trousers, Slacks 18.0 DZ. & Shorts (Outer) M and B - 21 -

448 Trousers, Slacks 18.0 DZ. & Shorts (Outer) W, G and I

459 Other Wool Apparel 2.0 LB. —MAN-MADE FIBER—

630 Handkerchiefs 1.7 DZ. 631 Gloves 3.5 DPR 632 Hosiery 4.6 DPR 633 Suit-Type Coats, 36.2 DZ. M and B 634 Other Coats, M & B 41.3 DZ. 635 . Coats, W, G & I 41.3 DZ. 636 Dresses 45.3 DZ. 637 Playsuits, Sun- 21.3 DZ. suits, Washsuits, etc. 638 Knit Shirts (Incl. 18.0 DZ. T-Shirts), M & B 639 Knit Shirts (Incl. 15.0 DZ. T-Shirts) W, G & I 640 Shirts, U.K. 24.0 DZ. 641 Blouses, N.K. 14.5 DZ. 642 Skirts 17.8 DZ. 643 Suits, M & B 54.0 DZ.

644 Suits, W, G & I 54.0 DZ. 645 Sweaters, M & B 36.8 DZ. 646 Sweaters, W, G & I 36.8 DZ.

647 Trousers, Slacks 17.8 DZ. & Shorts (Outer) M & B L - 22 -

648 Trousers, Slacks 17.8 & Shorts (Outer) W, G and I 649 Brassieres, etc. 4.8 DZ. 650 Dressing Gowns 51.0 DZ. Zncl. Bath & Beach Robes

651 Pajamas and Other 52.0 DZ. Nightwear 652 Underwear 16.0 DZ. 653 Down & Feather- 41.3 DZ. filled Coats, Jackets and Vests, M & B 654 Down & Feather- 41.3 DZ. filled Coats, Jackets & Yeses, W, G & I 659 Other Apparel 7.8 LB. MADE-UPS AND MISC. —COTTON— 360 Pillowcases 1.1 NO. 361 Sheets 6.2 NO. 362 Bedspreads & Quilts 6.9 NO. 363 Terry & Other Pile 0.5 NO. Towels 369 Other Cotton Manu- 4.6 LB. factures —WOOL— 464 Blankets & Auto 1.3 LB.

Robes

¥ - 23 -

r 465 Floor Covering 0.1 SFT 469 Other Wool Manu­ 2.0 LB. factures —MAN-•MADE FIBER—

665 Floor Covering 0.1 SFT 666 Other Furnishings 7.8 LB. 669 Other Man-Made 7.8 LB. Manufactures

670 Luggage, Handbags 2.0 LB. and Flataoods

f#A I - 24 -

•v ./ ANNEX B

JULY 1, 1985 JULY 1, 1986 CATEGORY UNITS JUNE 30. 1986 JUNE 30, 1987 GROUP I SYDS. 235,169,000 249 ,241,946 313 SYDS. 16,000,000 16 ,960,000 314 SYDS. 14,000,000 14 ,840,000

315 SYDS. 15,900,000 16 ,854,000 317 SYDS. 10,000,000 10 ,600,000 317

(Sublimit) SYDS. 2,100,000 2 ,226,000 319 SYDS. 5,260,000 5 ,575,600 320 Print-

Cloth SYDS. 10,700,000 11 342,000 331 DPR. 400,000 424,000 334 DZ. 28,000 29,680 335 DZ. 72,000 76.320 336 DZ. 65,000 68,900 337 DZ. 75,000 79,500 338 DZ. 275,000 291,500 339 DZ. 265,000 280,000 340 DZ. 370,000 392,200 341 DZ. 400,000 424,000

347/348 DZ. 700,000 742,000 351 DZ. 110,000 116,600 369 Shop

Towels LBS. 900,000 954,000 445/446 DZ. 50,000 50,500 604 Plied

Acrylic • Yarn LBS. 700,000 742,000 - 25 - y

613 SYDS. 15,000,000 15,900,000 614 SYDS. 15,000,000 15,900,000 631 Work

Gloves BPR. 650,000 689,000 635 OZ. 75,000 79,500 638 DZ. 300,000 318,000 639 DZ. 390,000 413,400 640 DZ. 330,000 349,800 641 DZ. 1,050,000 1,113,000

645/646 DZ. 350,000 371,000 647 DZ. 250,000 265,000 648 DZ. 1,200,000 1,272,000

JULY 1, 1987 CATEGORY UNITS JUNE 30, 1988 GROUP I SYE 264,158,884

312 SYDS

314 SYDS 15,730,400 315 SYDS 17,865,240 317 SYDS 11.236,000 317 Sateen (Subi imit ) SYDS 2,359,560 319 SYDS 5.910,136 320 Printcloth SYDS 12,022.520 331 DPR 449,440 334 DZ 31,461 335 DZ 80,399 336 DZ 73,034 337 DZ 84,270 338 DZ 308,990

339 DZ 297,754

'WMWyÊ&%%. - 26 -

340 DZ 415.732 341 DZ 449,440 347/348 DZ 786,520 351 OZ 123,596 369 Shop Towels LBS 1,001,240 445/446 DZ 51,005 604 Plied Acrylic Yarn LBS 786,520 613 SYDS 16,854,000 614 SYDS 16,854,000 631 Work Gloves DPR 730,340

635 DZ 84,270

638 DZ 337,080 639 DZ 438,204 640 DZ 370,788

641 DZ 1,179,780 645/646 DZ 393,260

647 " 290,900

648 DZ 1,348.320 The sum c f the spec i fie limits in square yards equivalent shall be the limit for Group I. '"'ÏW -21 -

ANNEX C LIMITS (SYE)

JULY 1, 1985 JULY 1, 1986 JULY 1. 1987 JUNE 30, 1986 JUNE 30, 1987 JUNE 30, 1988 GROUP II 49,831,000 54,814,100 60,295,510 (A) Cotton and man-made fiber categories (see note below).

300-301, 400, 600-603, 604-0, 605, 310-312, 316, 318, 320-0, 610-612, 625-627, 332-3, 342, 345, 349-50, 352-4, 359, 630, 631-0, 632-4, 636-7, 642-4, 649-54, 639, 360-363, 369-0, 665, 666, 669, 670.

(E) Vfcol Sub-Group Categories: (All wool categories except 445/446); of which not more than the following shall be in wool: 3,000,000 3,030,000 3,060,300

NOTE: 604-0 signifies all products in Category 604 except 604-A, plied Acrylic Yarn. 320-0 signifies all products in Category 620 except 320-?, Printcloth. 631-0 signifies all products in Category 631 except 631-W, Work Gloves. 369-0 signifies all products in Category 369 except 369-S, Shop Towels.

I MINISTER FOR FOREIGN AFFAIRS REPUBLIC OF INDONESIA

No. : D.0446 /85/32

Excellency,

I have the honour to acknowledge receipt of Your Excellency's Note No.830 dated September 25, 1985 which reads as follows :

UNITED STATES' NOTE

I have further the honour to confirm on behalf of the Government of the Republic of Indonesia the foregoing arrangements and to agree that Your Excellency's Note and this Note shall be regarded as constituting an agreement between the two Governments, which will enter into force on the date of this reply.

Accept, Excellency, the assurances of my highest consideration.

, 1985

for Foreign Affairs a.i. Republic of Indonesia His Excellency, John H. Holdridge, Ambassador Extraordinary and Plenipotentiary of the United States of America JAKARTA MIMCTI* FOR FOHEI6N AFFAI«S .-"A £» WFUM.IC OF «MOONIMA \ <-

No.: D. 0444/85/32

Dear Mr. Ambassador,

I have the honour to acknowledge receipt of Your Excellency's letter dated September 25, 1985 which reads as follows :

" In accordance with decisions reached during textile negotiations between representatives of our two countries meeting in Indonesia June 24-28, 1985, I am writing in refe­ rence to the U.S./Indonesia Bilateral Cotton, Wool and Man- Made Fiber Textile Agreement with annexes, proposed by Note No.830 of September 15, 1985 ("The Agreement"). Pursuant to Paragraph 4B of the Agreement, I propose that the following certification mechanism be established as an Administrative Arrangement. Each shipment of traditional folklore products of hand loom fabrics to include articles of Batik, Ikat and Kerawang in Categories 336, 341, 641, and 648 and shipped under the terms of Paragraph 4B of the Agreement shall be certified by your Government prior to the shipment leaving Indonesia according to the provisions of the Visa Agreement.

It is my Government's understanding that sole adminis­ trative responsibility for the correct allocation of quotas under this provision lies with the Government of the Republic of Indonesia. The Government of the United States, however, shall supply available statistical data when so requested by the Government of the Republic of Indonesia.

Hii; excellency, John H. Holdridge, Ambassador Extraordinary and Plenipotentiary of the United States of America. JAKARTA - 2 -

Shipments not accorapained by a valid and correct certification in accordance with the foregoing provisions shall be denied entry by my Government on and after the date specified in the Federal Register Notice which announces this administrative arrangement, unless your Government specifically authorizes entry and appropriate changes to Agreement levels.

If the foregoing is acceptable to your Government, this letter and your letter of acceptance on behalf of your Government shall constitute an Administrative Arrangement between our two Governments." I have further the honour to confirm on behalf of the Government of the Republic of Indonesia the foregoing letter and this letter shall be regarded as constituting an Administrative Arrangements, which will enter into force on the date of this reply.

Accept, Exellency, the assurances of my highest consideration.

,1985

of Foreign Affairs a.i, of the Republic of Indonesia