Indian Treaty Series

Washington, 6 August 1974

DEPARTMENT OF STATE
Washington.
August 6, 1974 ,
EXCELLENCY

I have the honour to refer to the Arrangement regarding International Trade in Textiles (hereafter referred to as the Arrangement), done in Geneva on December 20, 1973.

I also refer to recent discussions between our two Governments concerning the export of cotton textiles from India to the United States. As a result of these discussions, I have the honour to propose under Article 4 and in conformity with the Arrangement the following Agreement relating to trade in cotton textiles between India and the United States :

1. The term of this Agreement shall be from October 1, 1973 through September 30, 1977. During the term of this Agreement, the Government of India will limit annual exports of cotton textiles from India to the United States to aggregate, group, and specific limits at the levels specified in this Agreement.

2. For the first agreement year, constituting the 12-month period beginning October l, 1973, the aggregate limit shall be 152 million square yards equivalent.

3. Within this aggregate limit, the following group limits shall apply for the first agreement year :

Group In square yards Equivalent

I. (Categories 1-27) 119 million
II. (Categories 28-64) 33 million

4. (a) Within the aggregate limit and the applicable group limit, the following specific limits shall apply for the first agreement year.

Group I	In Square Yards
Categories 9/10 Categories l8/19 Categories 26 (other than duck)	38,000,000 8,000,000 35,000,000

Group II	In Square Yards Equivalent
Categories 28/29 Category 31 Categories 34/35	7,000.000 8,870,000 (of which not more than 5,322,000 shall be in terry towels) 8,000,000

(b) Within the aggregate limit and group limit for Group I, : annual limits shall be established each year for consultation categories 22 and 26 (duck) by consultations between the Governments of India and the United States. Such limits are not affected by the provisions in this agreement for growth (paragraph 8), swing (paragraph 5), carryover and carry forward (paragraph 7). For the agreement year beginning October 1, 1973, the limits for these categories shall be as follows:

Categories 22 Categories 26 (Duck)

Square Yards 24,000,000 14,000,000

5. Within the aggregate limit, the group limits for Group I and Group II may be exceeded by not more than 10 percent. Within the applicable group limit as it may be adjusted under this provision the specific limits, listed in paragraph 4(a), may each be exceeded by not more than 10 percent; provided, however, that should specific limits be established for any apparel categories (i.e. Categories 39-63) such limits may be exceeded by not more than 7 per cent.

6. Within each group limit and taking into account the following concentration provision, the amount 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 any category not given a specific limit, 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 107 percent 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.

7. (a) Beginning with the second agreement year, and for each succeeding agreement year, exports may exceed by a maximum of 10 percent of the aggregate Limit, any group or specific limit by allocating to the limits for that agreement year any unused portion of the previous agreement years applicable limit (carryover) or a portion of the applicable limit for the succeeding agreement year (carry forward).

(b) Carry forward shall be limited to a maximum of 5 percent of the applicable limits of the receiving year and shall be charged against the same limits of the succeeding agreement year.

(c) For purposes of this Agreement, a shortfall occurs when exports from India to the United States during an agreement year are below the aggregate limit and any group or specific limit in this Agreements or the agreement effected by exchange of notes dated September 27, 1970. The Government of India may permit exports to exceed the aggregate, group or specific limits by the amounts in (a) of this paragraph by carryover of shortfalls in the following 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

(ii) In the case of shortfalls in the categories (or combination of categories) subject to specific limits, the shortfall shall be used in the same category (or combination of categories) in which the shortfall occurred; and

(iii) In the case of shortfalls not attributable to categories (or, combination of categories) subject to specific limits, the carryover shall be used in the same group in which the shortfall occurred and shall not be used to exceed any applicable specific limit except in accordance with the provision of paragraph 5, and shall not affect any consultation arrangements made pursuant to paragraph 4.

(d) The limits referred to in sub-paragraphs (a), (b) and (c) of this paragraph are without any adjustments, under this paragraph or paragraph 5 above.

(e) The total adjustment under this paragraph shall be in a addition to the adjustments permitted by paragraph 5 above to the limits for any agreement year.

8. In the second and any succeeding agreement year for which any limitation is in force under paragraphs 1-7 of this Agreement, except for the consultation levels under paragraphs 4(b), the level ; of exports permitted under such limitation shall be increased by ; 7% of the corresponding level for the preceding agreement year, the latter level not to include any adjustments under paragraph 5 or 7.

9. 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 your, taking into consideration normal seasonal factors.

10. 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 Annex A. 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 Annex A. Each Government agrees to supply promptly any other available relevant statistical data requested by the other Government.

11. In the implementation of this Agreement, the system of categories and the rates of conversion into square yards equivalent listed in Annex A hereto shall apply. In any situation where the determination of an article to be a cotton textile would be affected by whether the weight or chief value criterion provided for in Article 12 of the Arrangement is used, the chief value criterion used by the Government of the United States of America shall apply.

12. 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.

13. 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.

14. If having regard to the provisions of the Arrangement, the Government of Indian 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.

15. 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 Arrangement. The applicability of the Arrangement to trade in textiles between India and the United States shall be otherwise unaffected by this agreement.

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.

17. With reference to the provisions of Article 12, paragraph 3, of the Arrangement, “India Items” are not within the purview of this Agreement. “India Items” are defined as those items that are uniquely and historically traditional Indian products cut, sewn or otherwise fabricated by hand in cottages, which are units of the cottage industry. A list of items with definitions, identified by representatives of both Governments as Indian Items, will serve as basis for implementing this provision of the Arrangement. Additional items may subsequently be added to this list by mutual Agreement.

18. A visa system and a certification system covering hand loomed products and “Indian Items” will be implemented by an administrative arrangement.
If the foregoing proposal is acceptable to 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.

For the Secretary of State
Sd /-
His Excellency T.N. Kaul,,
Ambassador of India

Category Number	Description	Unit	Conversion Factor to Syds
1	Cotton Yarn, carded, singles	lbs.	4.6
2	Cotton Yard, carded, plied	lbs.	4.6
3	Cotton Yarn, combed, singles	lbs.	4.6
4	Cotton Yarn, combed, plied	Syds.	4.6
5	Gingham, carded	Syds.	Not required
6	Gingham, combed	Syds.	Not required
7	Velveteen	Syds.	Not required
8	Corduroy	Syds.	Not required
9	Sheeting,carded	Syds.	Not required
10	Sheeting, combed	Syds.	Not required
11	Lawns, carded	Syds.	Not required
12	Lawns, combed	Syds.	Not required
13	Voile, carded	Syds.	Not required
14	Voile, combed	Syds.	Not required
15	Poplin and Broadcloth, carded	Syds.	Not required
16	Poplin and Broadcloth, combed	Syds.	Not required
17	Typewriter ribbon cloth	Syds.	Not required
18	Print cloth, shirting type 80x80 type,carded	Syds.	Not required
19	Print cloth, shirting type, other than 80x80 type, carded	Syds.	Not required
20	Shirting, jacquard or dobby, carded	Syds.	Not required
21	Shirting, Jacquard or dobby, combed	Syds.	Not required
22	Twill and sateen, carded	Syds.	Not required
23	Twill and sateen,combed	Syds.	Not required
24	Woven fabric, n.e.s.yarn dyed,carded	Syds.	Not required
25	Woven fabric,n.e.s.yarn dyed,combed	Syds.	Not required
26	Woven fabric, n.e.s.other, carded	Syds.	Not required
27	Woven fabric,n.e.s. other, combed	Syds.	Not required
28	Pillowcases,not ornamented,carded	Numbers	1.084
29	Pillowcases,not ornamented, combed	Numbers	1.084
30	Towels, dish	Numbers	348
31	Towels, others	Numbers	348
32	Handkerchief,whether or not in the pcs	Dozen	1.66
33	Table damash and manufactures	lbs.	3.17
34	Sheets, carded	Numbers	6.2
35	Sheets, combed-	Numbers	6.2
36	Bedspreads and quilts	Numbers	6.9
37	Braided and woven elastic	lbs.	4.6
38	Fishing net and fish netting	lbs.	4.6
39	Gloves and mittens	Dozen	3.527
40	Hose and half hose	Doz. prs.	4.6
41	T-shirts, all white, knit, men’s and boys	Dozen	7.234
42	T-shirts, other knit	Dozen	7.234
43	Shirts, knit, other than T shirts and sweatshirts	Dozen	7.234
44	Sweater and cardigans	Dozen	36.8
45	Shirts, dress, not knit, men’s and boys’	Dozen	22.186
46	Shirts, sport, not knit, men’s and boys	Dozen	24.457
47	Shirts, work, not knit, men’s and boys	Dozen	22.186
48	Raincoats, length orlonger,not knit	Dozen	50
49	Coats, other, not knit	Dozen	32.5
50	Trousers, slacks, and shorts (outer),not knit men's and boys'	Dozen	17.797
51	Trousers, slacks and shorts (outer),not knit women's girls' and infants'	Dozen	17.797
52	Blouses, not knit	Dozen	14.53
53	Dresses (including uniforms)not knit	Dozen	45.3
54	Play suits, sunsuits, washsuits, creepers, rompers, etc, not knit, n.e.s.	Dozen	25.0
55	Dressing gowns including bathrobes and beachrobes, lounging gowns, housecoats, and dusters, not knit	Dozen	51.0
56	Undershirts, knit,men’s and boys	Dozen	9.2
57	Briefs and undershorts, men’s and boys	Dozen	11.25
58	Drawers, shorts and briefs, knit n.e.s.	Dozen	5.0
59	All other underwear, not knit	Dozen	16.0
60	Pajamas and other knitwear	Dozen	51.95
61	Brassieres and other body supporting garments	Dozen	4.75
62	Wearing apparel knit, n.e.s.	lbs.	4.6
63	Wearing apparel, not knit, n.e.s.	lbs.	4.6
64	All other cotton textiles	lbs.	4.6

AMBASSADOR OF INDIA
WASHINGTON D C
August 6, 1974

EXCELLENCY,

I have the honour to refer to your note of August 6, 1974 proposing an agreement relating to trade in cotton textiles between India and the United States.

I confirm, on behalf of the Government of India, that the proposal set forth in your note is acceptable to my Government and that your note and this note in reply shall constitute an Agreement between our two Governments.

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

Sd /-
TRILOKI NATH KAUL
Ambassador of India

The Honourable HENRY KISSINGER
Secretary of State of the United States of America,
Washington, D.C.

A.G. ASHRANI,
Minister (Commerce)

Com. 105/1/74

August 6, 1974

MT. MICHAEL SMITH,
Chief,
Fibers & Textiles Division,
Bureau of Economic & Business Affairs,
Department of State,
Washington, D.C.

Dear Mr. SMITH,

I am writing in reference to paragraph 18 of the Agreement a covering trade in cotton textiles between India and the United States of America effected by exchanges of notes on August 6, 1974, In addition, I refer to recent discussions in Washington between representatives of our Governments on trade in cotton textiles.

As a result of these discussions, I wish to propose on behalf of my Government that the following visa and certification system be established as administrative arrangements :

1. Each shipment of cotton textiles and textile products, produced or manufactured in India and exported to the United States of America shall be accompanied by an export visa issued by an authority designated by the Government of India. The export visa will be signed by all authorized official of the designated organization of the Government of India and will appear as a stamped marking in blue ink in the front of the invoice (Special Customs Invoice Form 5515, successor document, or commercial invoice when such form is used). A sample of the visa is Attachment 1.

2. In addition to the export visa, each shipment of items to be exempted from the limitations of the Cotton Textile Agreement in accordance with Article 12, paragraph 3 of the Arrangement Regarding International Trade in Textiles shall be accompanied by a certification issued by the authority designed by the Government of India. The certification shall be a stamped marking in blue ink in the front of the invoice. Each certification will include the authorized signature and title of the official issuing the certification; identify the items exempted, indicate the date the certification was signed and certified; and carry the certificate number. These items are hereafter referred to as Exempted Items.

3. The names and facsimile signatures of the officials authorized to issue textile export visas and certifications will be supplied by the Government of India. The Government of India will notify the Government of the United States of America of any changes of authorized officials, and will provide facsimiles of newly authorized official signatures.

4. Cotton textile and textile products, including Exempted Items, exported from India to the United States of America which are not accompanied by an export visa in accordance with this letter, after the effective date of this requirement, shall be denied entry by the Government of the United States of America except upon specific request of the Government of India or the Embassy of India in Washington.

5. Invoices for Exempted Items will not include any textile products that are not exempt in accordance with paragraph 2 above. Shipments listed on any invoice which has been certified exempt but contains both Exempted Items as well as items subject to agreement levels, may be denied entry by the United States of America.

6. The Government of India shall each month provide the Government of the United States of America with a list of all shipments of Exempted Items which were certified exempt by the Government of India during the previous month. The list shall contain the following information for each shipment : category, description of item, units, quantity, vessel, value and date of export.

7. In the event the Government of the United States of America finds that any items exported from India to the United States as - Exempted Items should not be properly classified as such, the Government of the United States of America will apply the appropriate classification, charge the goods to the proper agreement level and so notify the Government of India.

8. The United States Government shall publish in the Federal Register the visa and certification system as described herein upon receipt of the authorized visa and certification signatures from the Government of India. India will apply the visa and certification system as of October 1, 1974.

9. Either Government may terminate, in whole or in part, this administrative arrangement by giving ninety (90) days written notice thereof to the other.

If the foregoing proposal is acceptable to your Government, this letter and your letter of acceptance on behalf of the Government of the United States of America shall constitute an administrative arrangement between our two Governments.

Yours sincerely,
Sd /-
A.C. ASRANI

DEPARTMENT OF STATE
Washington D.C.20520

August 6, 1974

Mr. ARJUN G ASRANI,
Minister (Commerce)
Embassy of India
2107 Massachusetts Ave. N.W.
Washington, D.C- 20008

Dear Mr. ASRANI,
I have received your letter of August 6, 1974, in which you proposed several administrative arrangements in accordance with paragraph 18 of the agreement covering trade in cotton textiles between India and the United States effected by exchanges of notes on August 6, 1974.

This letter is to inform you that your proposals are acceptable to My Government, and your letter and this letter shall constitute an administrative arrangement between our two Governments.

Sincerely,

Sd /-
For A. HOSEPH WILLIAMS
Fibers and Textiles Division

MODIFICATION

THE ACTING SECRETARY OF STATE TO THE INDIAN AMBASSADOR

DEPARTMENT OF STATE
Washington
January 20, 1976

EXCELLENCY :

I have the honour to refer to the Arrangement regarding International Trade in Textiles done in Geneva on December 20, 1973 [I] (the “Arrangement”) and to the bilateral Cotton Textile Agreement of August 6, 1974, with related letter of January 30, 1974, [2] between our two Governments (together, the “Agreement”).

I also have the honour to refer to recent discussions between representatives of our two Governments in Washington and, inasmuch as our two Governments do not have a common understanding on the interpretation of certain provisions of Article 12, paragraph 3 of the Arrangement, have the honour to propose the following provisions and amendments to the Agreement :

1. As provided in Article 12, paragraph 3 thereof, the Arrangement does not apply to handmade cottage industry products made of handloom fabrics of the cottage industry.

2. Additionally, products made of handloom fabrics of the cottage industry, when certified as such by the Government of India in accordance with administrative arrangements agreed to by the two Governments, shall not be subject to the Agreement.

3. However, exports from India to the United States of handloom apparel products described in paragraph 2 hereof shall be limited to 2.9 million dozen units during the year October 1, 1975, through September 30, 1976, and to 3.0 million dozen units during the year October 1, 1976, through September 30, 1977; provided, however, that during the year October 1, 1975, through September 30, 1976, the Government of India may authorize the export to the United States of up to 1.6 million dozen units of such apparel allocated hereby to the year October 1, 1976, through September 30, 1977.

4. The Agreement is hereby amended to provide that Group I shall also include Categories 28-38. and 64 (made-up and miscellaneous cotton textile products). Categories 28-38 and 64 shall when taken together be subject to a specific limit of 10 million square yards equivalent (SYE) for the year October 1, 1975 through September 30, 1976. The specific limits for Categories 28/29, 31 and 34/35, as provided in paragraph 4 (a) of the Agreement, shall continue to apply, provided that the specific limit for Categories 28-38 and 64 when taken together as mentioned above shall not be exceeded.

5. The Agreement is hereby amended to provide that for the third and fourth years of the Agreement, the aggregate and group levels shall be as follows:

For the third agreement year, the aggregate limit shall be 138.182 million SYE and the Group I limit shall be 120 million SYE. Shipments under Group II during the third agreement year shall not exceed 20 million SYE, including swing,. as defined in paragraphs 4 (b) and 5 of the Agreement.

For the fourth agreement year, the aggregate limit shall be 147.8547 million SYE and the Group I limit shall be 128.4 million SYE. Shipments under Group II during the fourth agreement year shall not exceed 21.4 million SYE, including swing as defined in paragraphs 4 (b) and 5 of the Agreement.

6. The limits in the third year under the Agreement, determined in accordance with the Agreement as amended hereby, shall be increased 7 percent for the fourth agreement year pursuant to paragraph 8 of the Agreement.
7. Except as amended hereby, the Agreement shall remain in full force and effect; provided, however, that in the case of any conflict between the terms of the Agreement and the terms hereof, the terms hereof shall govern.

If this proposal is acceptable to the Government of India, this note and Your Excellency’s note of acceptance on behalf of the Government of India shall constitute an Agreement between our two Governments which, by paragraphs 4,5, 6 and 7 hereof, amends the Agreement and which otherwise further regulates trade in cotton textiles between India and the United States of America, effective on the date of your note of acceptance.

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

For the Acting Secretary of State
PAUL BOEKER

HIS EXCELLENCY
TRILOKI NATH KAUL,
Ambassador of India

EMBASSY OF INDIA
Washington D.C.
January 22, 1976
MCS/76/118

EXCELLENCY,
I have the honour to acknowledge receipt of your note of January 20, 1976 proposing certain provisions and amendments to the bilateral Cotton Textile Agreement of August 6, 1974, between our two Governments which reads as follows:

(Not Reproduced)

I confirm on behalf of the Government of India that the proposal set forth in your note is acceptable to my Government and that your note and this note in reply shall constitute an agreement between our two Governments.

Accept, excellency, the renewed assurances of my highest consideration

Sd/-
TRILOKI NATH KAUL
Ambassador of India

His EXCELLENCY Dr. HENRY A. KISSINGER
Secretary of State
Government of the
United States of America.

DEPARTMENT OF STATE
Washington
June 13, 1977

EXCELLENCY,

I have the honour to refer to the Agreement on Trade in Cotton Textiles between the United States of America and India of August 6, 1974, and the Agreement effected by exchange of notes on January 20 and 22, 1976.[1]

Keeping in view the principles of Article 12(3) of the Arrangement regarding International Trade in Textiles, and without prejudice to the interpretations of either the Government of India or the Government of the United States of that Article, the Government of the United States would like to propose the following :

(a) that the provisions of paragraph 3 of the January 1976 Agreement which require the Government of India to limit its exports of handloom apparel products to the United States be terminated immediately;

(b) that either Government may request consultations in respect to their trade in such products whenever they consider them necessary;

(c) that consultations will begin within 30 days of the request for them;

(d) that, pending a mutually satisfactory conclusion of such consultations, the Government of the United States may request the Government of India to restrain exports of such handloom apparel products;

(e) that, upon receiving such a request, the Government of India will restrain exports of such products to the requested level which shall not be lower than the highest level of such imports in an agreement year prior to the date this agreement takes effect.

If this proposal is acceptable to the Government of India, this note and your Excellency’s note of acceptance on behalf of the Government of India shall constitute an agreement which will remain in effect until September 30, 1981, unless earlier terminated o amended.

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

For the Secretary of State
STEPHEN BOSWORTH

HIS EXCELLENCY KEWAL SINGH,
Ambassador of India.

KEWAL SINGH

AMBASSADOR OF INDIA
WASHINGTON, D.C

JUNE 17, 1977
No. Amb 773,

EXCELLENCY,

I have the honour to refer to your letter of June 13, 1977, concerning the agreement on trade in cotton textiles between U.S. and India, the text of which is set out below :

(Not reproduced)

2. I confirm on behalf of the Government of India that the above communication correctly sets out the latest procedures agreed upon governing trade in cotton textiles between India and the United States of America.

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

Sd /-
KEWAL SINGH
Ambassador of India
His EXCELLENCY Mr. CYRUS R VANCE
Secretary of State,
Washington, D.C.

DEPARTMENT OF STATE
Washington
September 28, 1977

EXCELLENCY,

I have the honor to refer to the Arrangement regarding International Trade in Textiles done in Geneva on December 20, 1973[1] (the “Arrangement”), and to the Agreement on Trade in Cotton Textiles between our two Governments of August 6, 1974, as modified by the exchange of notes of January 20 and 22, 1976 and as further amended by the exchange of notes of June 13 and June 17, 1977 (the “Agreement”).

I have also the honor to refer to recent discussions between representatives of our two Governments in Washington and New Delhi. As a result of those discussions, I propose on behalf of my Government that the Agreement be amended as follows :

1. The term of the Agreement shall be extended through October 31, 1977.

2. The agreement year covering the period October 1, 1976, through September 30, 1977, shall be extended to include the period from October l, 1976, through October 31, 1977. The aggregate limit, the group limits, and each specific limit applicable during the agreement year covering the period October 1, 1976, to October 31, 1977, shall be equal to 108.33 percent of the corresponding limit applicable during the agreement year ending September 30, 1977, plus seven percent of one-twelveth of the corresponding limit for the agreement year ending September 30, 1977.

3. For the agreement year covering the period from October 1, 1976, to October 31, 1977, the consultation levels set in subparagraph 4(b) of the Agreement shall be 108.33 percent of the corresponding levels for the agreement year ending September 30, 1977.

If this proposal is acceptable to the Government of India, this note and Your Excellency’s note of acceptance on behalf of your Government shall constitute an agreement between our two Governments, amending the Agreement.

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

For the Secretary of State
ROBERT HORMATS

His EXCELLENCY N.A. PALKHIVALA,
Appointed Ambassador of India.

N.A.PALKHIVALA
AMBASSADOR OF INDIA
WASHINGTON, D.C.
SEPTEMBER 29, 1977

1239 AMB 77

EXCELLENCY,
I have the honour to refer to your letter of September 28, 1977, concerning the agreement on trade in cotton textiles between the United States and India, the text of which is set out below :

(Not reproduced)

2. I confirm on behalf of the Government of India that the above communication correctly sets out the latest procedures agreed upon governing trade in cotton textiles between India and the United States of America.

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

Sd /- N.A. PALKHIVALA
Ambassador of India

His EXCELLENCY Mr. CYRUS R. VANCE,
Secretary of State,
Department of State,
Washington, DC

DEPARTMENT OF STATE
Washington
October 28, 1977

EXCELLENCY,

I have the honor to refer to the Arrangement regarding International Trade in Textiles done in Geneva on December 20, 1973 (the “Arrangement”), and to the Agreement on Trade in Cotton Textiles between our two Governments of August 6, 1974, as modified by the exchange of notes of January 20 and 22, 1976, as amended by the exchange of notes of June 13 and 17, 1977 and as further amended by the exchange of notes of September 28 and 29, 1977.

I have also the honor to refer to recent discussions between representatives of our two Governments in Washington and New Delhi. As a result of those discussions, I propose on behalf of my Government that the Agreement be amended as follows :

1. The term of the Agreement shall be extended through November 30, 1977.

2. The agreement year covering the period October l, 1976, through September 30, 1977, shall be extended to include the period from October 1, 1976, through November 30, 1977. The aggregate limit, the group limits, and each specific limit applicable during the agreement year covering the period October 1, 1976, to November 30, 1977, shall be equal to 116.67 percent of the corresponding limit applicable during the agreement year ending September 30, 1977, plus seven percent of one-sixth of the corresponding limit for the agreement year ending September 30, 1977.

3. For the agreement year covering the period from October 1, 1976 to November 30, 1977, the consultation levels set in subparagraph

4(b) of the Agreement shall be 116.67 percent of the corresponding levels for the agreement year ending September 30, 1977.
If this proposal is acceptable to the Government of India, this note and Your Excellency’s note of acceptance on behalf of your Government shall constitute an agreement between our two Governments, amending the Agreement.
Accept, Excellency, the renewed assurances of my highest consideration.