Indian Treaty Series

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I have the honour to propose that for the period from October 1, l966 through December 31, l966 the trade in cotton textiles between our two countries shall continue to be regulated in accordance with the existing arrangements under the Agreement. With respect to paragraphs 1 and 2 of the Agreement, the limits for this period shall be based on the half yearly rate specified in these paragraphs for April 1, 1966, to September 30, 1966. The quantities exported during this period will be charged against the levels that may be agreed upon between our two Governments for the period beginning from October 1, 1966 or, if levels applicable for exports of cotton textiles from India to the United States after the expiration of this Agreement become effective on some other date, such charges will be made as appropriate.

If these proposals are acceptable to your Government, this note and your note accepting these proposals on behalf of the Government of India shall constitute an Agreement between our Governments.

Accept, Sir, the renewed assurances of my high consideration.

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I acknowledge the receipt of the note which reads as follows :

[See note I]

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No. 370

I have the honour to refer to the Agreement on trade in cotton textiles effected by an exchange of notes in Washington on April 5, 1964, as amended (hereinafter referred to as the Agreement) and to the notes exchanged between our Governments on October 21, 1966 (hereinafter referred to as the Extension) extending to December 31st, the Agreement.

I have the honour to propose that the Extension be replaced as of the date of your reply to this note as follows. For the period from October 1, 1966 through March 31, 1967 trade in cotton textiles between our two countries shall continue to be regulated in accordance with the existing arrangements under the Agreement. With respect to paragraphs 1 and 2 of the Agreement the limits for this period shall be those specified in these paragraphs for April 1, 1966 to September 30, 1966.

If these proposals are acceptable to your Government, this note and your note accepting these proposals on behalf of the Government of India shall constitute an agreement between our Governments:

Sincerely,

I acknowledge the receipt of your note No. 370 dated December 30, 1966 addressed to Shri K.B. Lall, Secretary, Ministry of Commerce which reads as follows :

[See note I]

I wish to confirm that the proposal set forth in the note quoted above is acceptable to the Government of India.

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No. 602

I have the honour to refer to the Agreement on Trade in Cotton Textiles effected by an exchange of notes in Washington on April 15, 1964 as amended (hereinafter referred to as the Agreement) and the notes exchanged between our Governments on December 30, 1966 (hereinafter referred to as the Extension) extending the Agreement to March 31, 1967. I have the honour to propose that the Extension be replaced as of the date of your reply to this note as follows :

1. For the period from October 1, 1966 through April 30, 1967 trade in cotton textiles between our two countries shall continue to be regulated in accordance with the existing arrangements under the Agreement. With respect to paragraphs 1 and 2 of the Agreement the limits for this period shall be 116 2/3 per cent of those specified in these paragraphs for April 1, 1966 to September 30, 1966.

2. The quantities exported during this period will be charged against any levels that may be applicable after the expiration of this Agreement as appropriate depending upon the date on which such levels go into effect.

If these proposals are acceptable to your Government, this note and your note accepting these proposals on behalf of the Government of India shall constitute an Agreement between our Governments.

Accept, Excellency, the renewed assurances of my highest consideration.

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I acknowledge the receipt of your note No. 602 dated March 30, 1967 which reads as follows :

[See Note I]

I wish to confirm that the proposal set forth in the note quoted above is acceptable to the Government of India.

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I have the honour to refer to the decision of the Cotton Textiles Committee of the General Agreement on Tariffs and Trade approving a Protocol to extend through September 30, 1970 the Long Term Arrangement regarding International Trade in Cotton Textiles done in Geneva on February 9, 1962 (hereinafter referred to as “the Long Term Arrangement”). I also refer to recent discussions between representatives of our two Governments and to the agreements between our two Governments concerning exports of cotton textiles from India to the United States effected by exchanges of notes dated October 21, December 30, 1966, and March 30, 1967. I confirm, on behalf of my Government, the understanding that these agreements are replaced by a new Agreement as provided in the following numbered paragraphs. This new Agreement is based on our understanding that the above mentioned Protocol will enter into force for our two Governments on October 1, 1967.

1. The term of this Agreement shall be from October l, 1966 through September 30, 1970. During the term of this Agreement, the Government of India shall limit annual exports of cotton textiles from India to the United States to aggregate, group, and specific limits at the levels specified in the following paragraphs. It is noted that these levels reflect a special adjustment for the first agreement year. The levels set forth in paragraph 2, 3 and 4 for the second agreement year are 5% higher than the limits for the preceding year without this special adjustment; thus the growth factor provided for in paragraph 6 has already been applied in arriving at these levels for the second agreement year.

2. For the first agreement year, constituting the 12-month period beginning October 1, 1966, the aggregate limit shall be 79 million square yards equivalent. For the second agreement year the aggregate limit shall be 88.2 million square yards equivalent.

3. Within this aggregate limit, the following group limits shall apply for the first and second agreement years, respectively:

		In Square Yards Equivalent
Group		First Agreement Year	Second Agreement Year
I.	(Categories 1 - 27)	64 million	71.4 million
II.	(Categories 28 - 64)	15 million	16.8 million

4. Within the aggregate limit and the applicable group limits, the following specific limits shall apply for the first and second agreement years, respectively :

	First Agreement Year	Second Agreement Year
A. Group I
Categories 9/10	20,150,000 syds.	22,470,000 syds.
Categories 18/19	3,925,000 syds	4,383,750 syds.
Category 22	8,850,000 syds.	10,867,500 syds.
Category 26 (duck only)	6,000,000 syds.	6,300,000 syds.
Category 26 (other than duck)	20,150,000 syds.	22,470,000 syds.

	First Agreement Year		Second Agreement Year
B. Group II	Units (pcs.)	Sq. Yds. Eq	Units (pcs.)	Sq. Yds. Eq
Categories 28/29	2,508,764	2,719,500	2,905,904	3,150,000
Categories 31	3,905,172	1,359,000	4,525,861	1,575,000
Categories 34/35	662,903	4,109,999	762,097	4,725,001

5. Within the aggregate limit, the limit for Group I may be exceeded by not more than 10 per cent and the limit for Group II may be exceeded by not more than 5 per cent. Within the applicable group limit, as it may be adjusted under this provision, specific limits may be exceeded by not more than 5 per cent.

6. In the succeeding 12-month periods for which any limitation is in force under this Agreement, the level of exports permitted under such limitation shall be increased by 5 per cent of the corresponding level for the preceding 12-month period, the latter level not to include any adjustments under paragraphs 5 or 15.

7. Within group limits for each group and the following concentration provision, the square yard equivalent of any shortfalls occurring in exports in the categories given specific limits may be used in any category not given a specific limit. In the event of undue concentration in exports to the United States of cotton textiles from India in

(a) any category not given a specific limit or

(b) any combed category of any part of merged combed and carded categories under paragraph 4,

the Government of the United States of America may request consultation with the Government of India to determine an appropriate course of action. Until a mutually satisfactory solution is reached, the Government of India shall limit exports in the category in question to the United States starting with the 12-month period beginning on the date of the request for consultation. This limit shall be 105 per cent of the exports of such products to the United States during the most recent 12-month period preceding the request for consultation for which statistics are available to our two Governments.

8. The Government of India shall use its best efforts to space exports of cotton textiles from India to the United States within each category evenly throughout the agreement year, taking into consideration normal seasonal factors.

9. The two Governments recognize that the successful implementation of the agreement depends in large part upon mutual cooperation on statistical questions. The Government of the United States of America shall promptly supply the Government of India with data on monthly imports of cotton textiles from India in accordance with the categories listed in the appendix. The Government of India shall promptly supply the Government of the United States of America with data on monthly exports of cotton textiles to the United States, in accordance with the categories listed in the appendix. Each Government agrees to supply promptly any other available relevant statistical data requested by the other Government.

10. In the implementation of this Agreement, the system of categories and the rates of conversion into square yard equivalents listed in the Annex hereto shall apply. In any situation where the determination of an article to be a cotton textile would be affected by whether the criterion provided for in Article 9 of the Long-Term Arrangement is used or the criterion provided for in paragraph 2 of Annex E of the Long-Term Arrangement is used, the chief value criterion used by the Government of the United States of America in accordance with paragraph 2 of Annex E shall apply.

11. The Government of the United States of America and the Government of India agree to consult on any question arising in the implementation of this Agreement.

12. 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.

13. If the Government of India considers that as a result of limitations specified in this Agreement, India is being placed in an inequitable position vis-a-vis a third country, the Government of India may request consultation with the Government of the United States of America with the view to taking appropriate remedial action such as a reasonable modification of this Agreement.

14. During the term of this Agreement, the Government of the United States of America will not request restraint on the export of cotton textiles from India to the United States, under the procedures of Article 3 of the Long-Term Arrangement. The applicability of the Long-Term Arrangement to trade in cotton textiles between India and the United States shall otherwise be unaffected by this Agreement.

15. (a) For any agreement year subsequent to the first agreement year and immediately following a year of a shortfall (i.e., a year in which cotton textile exports from India to the United States were below the aggregate limit and any group and specific limits applicable to the category concerned) the Government of India may permit exports to exceed these limits by carry-over in the following amounts and manner :

(i) The carryover shall not exceed the amount of the shortfall in either the aggregate limit or any applicable group or specific limit and shall not exceed either 5% of the aggregate limit or 5% of the applicable group limit in the year of the shortfall, and

(ii) in the case of shortfalls in the categories subject to specific limits the carryover shall be used in the same category in which the shortfall occurred and shall not exceed 5 % of the specific limit in the year of the shortfall, and

(iii) in the case of shortfalls not attributable to categories subject to specific limits, the carryover shall be used in the same group in which the shortfall occurred, shall not be used to exceed any applicable specific limit except in accordance with the provisions in paragraph 5 and shall be subject to the provisions of paragraph 7 of the agreement.

(b) The limits referred to in sub paragraph (a) of this paragraph are without any adjustments under this paragraph or paragraph 5.

(c) The carryover shall be in addition to the exports permitted in paragraph 5.

16. Either Government may terminate this Agreement effective at the end of an agreement year by written notice to the other Government to be given at least 90 days prior to the end of such agreement year. Either Government may at any time propose revisions in the terms of this Agreement.

If the above conforms with the understanding of your Government, this note and your Excellency's note of confirmation on behalf of the Government of India shall constitute an Agreement between our Governments.

Accept, Excellency, the renewed assurances of my highest consideration.