1 Whereas the Coordination Council for North American Affairs (CC-NAA) has been established in Taipei as an organization outsidethe governmental structure whose employees are non-active dutypersonnel, whereas the American Institute in Taiwan (AIT) has b-een incorporated in the District of Columbia as a private, non-governmental entity whose employees are private citizens, CCNAAand AIT (hereafter referred to as "the counterpart organization-s") have reached the following agreement: ARTICLE 1 The CCNAA may establish an office in the metropolitan area of t-he District of Columbia and branch offices in eight cities with-in the United States and such other additional localities as ma-y be agreed upon between the counterpart organizations. The Ins-titute may establish an office in Taipei and a branch office inKaohsiung. The Institute may operate a Chinese language schoolin Taipei, a trade center in Taipei and cultural centers in Tai-pei and Kaohsiung, each of which offices shall be considered anintegral part of the Institute. ARTICLE 2 (a) Each counterpart organization shall undertake to ensure thatthe other counterpart organization and its personnel will r-eceive all privileges, exemptions and immunities as set for-th herein and to take all possible measures, as appropriate,to secure adequate protection of the other counterpart orga-nization's premises and personnel, so as to facilitate prop-er execution of that organization's functions. (b) No person shall be entitled to the benefits of this agreeme-nt unless he or she (i) shall have been duly notified to andaccepted by the receiving counterpart organization as a des-ignated emplyee of the sending counterpart organization, or(ii) is a member of the family of one of the foregoing acce-pted or designated employees. (c) The receiving counterpart organization shall facilitate iss-uance of identification cards to persons who are entitled tothe benefits of this agreement. (d) The sending counterpart organization shall notify the recei-ving counterpart organization of the termination of servicesor of the departure of any person entitled to the benefitsof this agreement. (e) Should the receiving counterpart organization determine thatthe continued presence of any person entitled to the benefi-ts of this agreement is not desirable, it shall so inform t-he sending counterpart organization. After such person shallhave had a reasonable length of time to depart, to be deter-mined by the receiving counterpart organization, he or sheshall cease to be entitled to such benefits. (f) No person shall, by reason of the provisions of this agreem-ent, be considered as receiving any privileges or immunitiesother than such as are specifically set forth herein. ARTICLE 3 Each counterpart organization shall facilitate the issuance ofappropriate visas for staff members of the other organization a-nd their family members. ARTICLE 4 (a) The sending counterpart organization shall be free to commu-nicate for all purposes related to the performance of its f-unctions and shall enjoy inviolability for all corresponden-ce related to its functions. (b) The bag carrying the correspondence referred to in the prec-eding paragraph and other articles related to the performan-ce of the counterpart organization's functions shall neitherbe opened nor detained. (c) The packages constituting such a bag must bear visible exte-rnal marks of their character and may contain only documentsor articles intended for the performance of the organizatio-n's designated functions. (d) The designated carriers of such bags, who shall be providedwith a document indicating their status and the number of p-ackages constituting such bags, who shall be protected in t-he performance of their functions. The designated carrier s-hall enjoy personal inviolability and shall not be liable toany form of arrest or detention. (e) The sending counterpart organization may designate such car-riers ad hoc. In such cases the provisions of paragraph (d)of this Article shall apply, except that the privileges andimmunities of an ad hoc carriers shall cease when the bag inhis charge shall have been delivered to the consignee. (f) Bags carrying such correspondence and articles may be entru-sted to the captain of a commercial aircraft scheduled to l-and at an authorized port-of-entry. The captain shall be pr-ovided with a document indicating the number of packages co-nstituting the bag, but the captain shall not be consideredto be a designated carrier of such bags.The sending counter-part or ganization may send one of its members to take poss-ession of such a bag directly and freely from the captain ofthe aircraft. ARTICLE 5 (a) The wages, fees or salaries of any designated employee of asending counterpart organization, except nationals and perm-anent residents of the jurisdiction in which the receivingcounterpart organization is located, to the extent such wag-es, fees or slaries are received in connection with the per-formance of authorized functions, shall be exempt from taxa-tion imposed by the central or local authorities of the jur-isdiction in which the receiving counterpart organization islocated. (b) Wages, salaries and fees paid by the sending counterpart or-ganization to its designated employees, except nationals andpermanent residents of the jurisdiction in which the receiv-ing counterpart organization is located, shall not be subje-ct to withholding for purposes of taxation by the central orlocal authorities of the jurisdiction in which the receivingcounterpart organization is located. The sending counterpartorganization and its officers and employees, other than nat-ionals of the jurisdiction in which the receiving counterpa-rt organization is located, shall be exempt from making con-tributions for unemployment or similar insurance, social se-curity, or other programs adopted by the central or local a-uthorities of the jurisdiction in which the receiving count-erpart organization is located. (c) The property and assets of the sending counterpart organiza-tion, and any successor organization thereto, wherever loca-ted and by whomsoever held, shall be immune from forced ent-ry, search, attachment, execution, requisition, expropriati-on or any other form of seizure or confiscation, unless suchimmunity be expressly waived. The archives and documents ofthe sending counterpart organization shall be inviolable atall times and wherever they may be. (d) Real property used for the performance of the sending count-erpart organization's authorized functions and for which thecounterpart organization would be liable for payment of tax-es shall be exempt from central and local taxation of the j-urisdiction in which the receiving counterpart organizationis located. The property, income, operations, and other tra-nsactions of the sending counterpart organization shall beexempt from taxation by the central and local authorities ofthe jurisdiction in which the receiving counterpart organiz-ation is located. The exemptions provided in this Article,however, shall not apply to any property which is not usedfor the purposes of the sending counterpart organization orsuccessor organizations. (e) Designated employees of each sending counterpart organizati-on shall be immune from suit and legal processes relating toacts performed by them within the scope of their authorizedfunctions, unless such immunity be specifically waived by t-he sending counterpart organization. (f) The receiving counterpart organization shall undertake to e-nsure that the designated employees of the sending counterp-art organization shall be exempt from payment of central andlocal sales taxes, except those normally included in the pr-ice of goods and services. This exemption shall not, howeve-r, extend to charges for specific services rendered. (g) The designated employees of the primary office of a sendingcounterpart organization, except persons who are nationalsor permanent residents of the jurisdiction in which the rec-eiving counterpart organization is located, shall be exemptfrom all taxes and dues imposed by central or local authori-ties of the jurisdiction in which the receiving counterpartorganization is located in connection with the ownership oroperation of a motor vehicle. The receiving counterpart org-anization shall undertake to ensure that these employees sh-all also be exempt from payment of central excise taxes ongasoline, diesel fuel and lubricating oil. (h) A sending counterpart organization and its designated emplo-yees and their families, except nationals or permanent resi-dents of the jurisdiction in which the receiving counterpartorganization is located, shall be entitled, insofar as cust-oms duties, customs clearance, and internal revenue taxes i-mposed by reason of importation of baggage and effects, aswell as laws regulating entry into and departure from the j-urisdiction in which the receiving counterpart organizationis located, alien registration and fingerprinting, and regi-stration of foreign agents are concerned, to the privileges,exemptions and immunities equivalent to those accorded undersimilar circumstances in the United States to public intern-ational organizations, their officers and employees as wellas members of their famlies. (i) With respect to the treatment of authorized communicationsand imposition of taxes for authorized communications, a se-nding counterpart organization shall be entitled to privile-ges, exemptions and immunities equivalent to those accordeda public international organization in the United States. ARTICLE 6 (a) Each counterpart organization shall possess the capacity:(i) to contract; (ii) to acquire and dispose of real and personal property, and(iii) to institute legal proceedings (b) In order that it may effectively perform its functions, eachsending counterpart organization shall enjoy in the territo-ry in which the receiving counterpart organization is locat-ed, immunity from suit and legal processes equivalent to th-ose enjoyed by public international organizations in the United States. ARTICLE 7 This Agreement may be modified at any time by mutual consent.ARTICLE 8 This Agreement is effective on the date of signature and will r-emain in effect indefinitely. It may, however, be terminated byeither party upon one year's prior written notice to the otherparty or, otherwise, by mutual agreement. IN WITNESS WHEREOF the undersigned duly authorized for this pur-pose, have signed this Agreement. Done at Washington, D.C., on this second day of October, 1980.For the Coordination Council for North American Affairs: (Signed) Konsin Shah For the American Institute in Taiwan: (Signed) David Dean Ⅰ Letter from Mr. David Dean, Chairman of the Board and Managi-ng Director of American Institute in Taiwan, to Mr. Konsin S-hah, Representative of Coordination Council for North Americ-an Affairs. October 1,1980 Mr. Konsin Shah Representative Coordination Council for North American Affairs 5161 River Road, N.W. Washington, D.C. 20016 Dear Konsin: With reference to our recent conversation relating to the pr-oposed agreement between the American Institute in Taiwan an-d the Coordination Council for North American Affairs on pri-vileges and immunities, I am writing to propose a method forhandling the question of any outstanding tax liabilities ofthe CCNAA. These are obligations which may have been incurredbetween the date of the establishment of the CCNAA in the Un-ited States and the effective date of the bilateral agreemen-t. As I have previously advised you, it will not be possible tomake the privileges and immunities agreement retroactive toJanuary 1,1979. However, in recognition of the stated policyof the United States Congress to ensure that the representat-ion of Taiwan in the United States retain appropriate privil-eges and immunities as are necessary for the effective perfo-rmance of its functions (Section 10(c) of the Taiwan Relatio-ns Act), the AIT is prepared to take whatever steps as are n-ecessary in order to eliminate any gap in the enjoyment of p-rivileges and immunities by the CCNAA. To this end, the AIT is willing to correspond with local aut-horities for the purpose of securing their cooperation in pr-eserving for the CCNAA and its personnel those privileges andimmunities which the Taiwan representation previously enjoyedin the United States and which would be preserved under theproposed bilateral agreement for the period between the esta-blishment of the CCNAA and the effective date of the bilater-al agreement. I hope that this action will eliminate any remaining concernson the part of the CCNAA respecting the need for establishinga retroactive effective date for the privileges and immuniti-es agreement. Sincerely, (Signed) David Dean Chairman of the Board and Managing Director Ⅱ Letter from Mr. Konsin Shah, Representative of CoordinationCouncil for North American Affairs, to Mr. David Dean, Chair-man of the Board and Managing Director of American Institutein Taiwan October 2,1980 S 1-68066 Dear david: Pursuant to the previous discussion between our two partieson the implementation of Article 5 (d) concerning the taxexe-mption of real property used for the performance of both par-ties' authorized functions, it is mutually understood that t-he above-mentioned privileges be construed as including thereal property used as the residences of each CCNAA branch of-fice's director in the U.S.A. Your confirmation in this regard is appreciated. Sincerely, (Signed) Konsin Shah Representative Mr. David Dean Chairman of the Board and Managing Director American Institute in Taiwan 1700 N Moore Street, 17th Flr. Arlington, VA 22209 Ⅲ Letter from Mr. David Dean, Chairman of the Board and Managi-ng Director of American Institute in Taiwan, to Mr. Konsin S-hah, Representative of Coordination Council for North Americ-an Affairs. October 2,1980 Mr. Konsin C. Shah Representative Coordination Council for North American Affairs 5161 River Road, N.W. Washington, D.C. 20016 Dear Konsin: I refer to your letter of October 2 (S1-68066) concerning Ar-ticle 5(d) of our agreement on Privileges and immunities. Iconfirm that the assumptions and understandings expressed inyour letter are correct. Sincerely yours, (Signed) David Dean Chairman of the Board and Managing Director AIDE-MEMOIRE S1-68067 Upon signing the English text of the Agreement on Privileges, E-xemptions and Immunities between the American Institute in Taiw-an and the Coordination Council for North American Affairs, itis understood that, pending further consultation, the said Chin-ese text will be signed whenever both parties concerned are ableto reach an agreement. October 2,1980 David Dean Chairman of the Board and Managing Director American Institute in Taiwan (signed) Konsin C. Shah Representative Coordination Council for North American Affairs Office in U.S.A.