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1 As a result of consultations between the American Institute in Taiwan (AIT) and the Coordination Council for North American Af-fairs (CCNAA) in Washington December 15-18, 1992, pursuant to p-aragraph 4 (c) (iv) of the exchange of letters dated December 1 and 11,1992 (the "Letters"), the two parties agree to the follo-wing partial restoration of swing rates, growth rates and quota levels specified in the Letters. 1. The authorities represented by CCNAA agree to seriously cons-ider and endeavor to implement the following five measures u-nder the law of the territory represented by CCNAA to discou-rage illegal transshipments: A. Take actions to increase the severity of penalties, inclu-ding the possibility of criminal penalties, available to the public prosecutor's office for action involving unlaw- fiul transshipment. B. Examine, in order to inform AIT, the possibility of stren-gthening Customs control at Taiwan ports to prevent switc- hing of bills of lading in perpetration of fraudulent sch- emes to make textile products that originated elsewhere to appear as having originated in the territory represented by CCNAA. C. Initiate more investigations on reasonable suspicion of i-llegal transshipment. D. Offer rewards for information on illegally transshipped t-extiles. E. Conduct more in-depth investigations for the purpose of u-ncovering accomplices and initiating prosecutions. 2. Restoration of base levels, swing rates and growth rates (wh-ere applicable), set forth in Schedule I hereto, shall only apply to the 1993 agreement year, effective January 1, 1993. Base levels, swing rates and growth rates for 1994-1995 shallremain, for the present, at the levels and rates specified inthe Letters, unless agreed otherwise. Consultations to reviewthe 1994 levels and rates are to be held before July 1993, a-nd to review the 1995 levels and rates shall be held in mid-1994, pursuant to paragraph 4 (c) (iv) of the Letters. 3. The swing rate for category 640 for 1992 only shall be resto-red to 4 percent. The provisions of this Memorandum of Understanding shall be app-lied upon signature until an agreement incorporating its terms is effected by an exchange of letters. (Signed) For AIT Raymond J. Sander Washington, December 18,1992 (Signed) For CCNAA Chia Sheng Pan Schedule I For 1993, base levels and swing rates shall apply as follows:Category New 1993 LimitRestored 1993 Swing 347/8 1,072,9196.0% 347/8W1,072,9196.0% 359C/659C 1,458,2737.0% 633/4/5 1,634,4401.0% 633/4959,3171.0% 635850,0771.0% 638/9 6,578,5895.0% 640 1,058,9090.0% 640Y500,0000.0% 642 778,2997.0% 659S1,689,9677.0% 645/6 4,138,4980.0%