September 3, 1986Dr.Fredrick F. Chien Representative Coordination Council for North American Affairs5161 River Road Bethesda, Maryland 20816 Dear Dr. Chien :In September 1981, representatives of producers of soybeans, co-rn, wheat and barley in the United States signed an agreement w-ith representatives of importers of those commodities in Taiwan.Under the terms of that grains agreement, which had a durationof five years beginning on July 1, 1981, Taiwan importers agreedto purchase from the United States during the life of the agree-ment a minimun of 4.8 million metric tons of soybeans, 8.6 mill-ion metric tons of corn, 2.85 million metric tons of wheat and 900,O0O metric tons of barley.Representatives of United States producers of soybeans, corn, w-heat, and barley and representatives of Taiwan importers of tho-se grains have held discussions regarding the renewal or renego-tiation of the agreement concluded in 1981 for an additional fi-ve years, from July 1, 1986 through June 30, 1991. It will, ofcourse, be the responsibility of the representatives of the exp-orters and importers to establish the annual minimum level of i-mports into Taiwan of the grains which are covered in the new a-greement.The American Institute in Taiwan strongly supports the renewalof the 1981 grains agreement for an additional five years and a-lso understands that the Coordination Council for North AmericanAffairs supports the renewal of the 1981 grains agreement in ac-cordance with the principles of mutual benefits to the Taiwan i-mporters and U.S. exporters of grains, having regard to marketforces, competitiveness and the special characteristics of theworld grains market.Exports of United States agricultural commodities, particularlygrains, have been a highlight of trade between the United Statesand Taiwan in recent years. The American Institute in Taiwan al-so acknowledges and appreciates Taiwan’s efforts to redress thetrade imbalance with the United States by such means as sendingspecial purchasing missions to the United States, tariff reduct-ions, support of AIT’s commercial presence in Taiwan, and spons-oring exhibitions of United States products.If you are in agreement that renewal of the five-year grain agr-eement is in the interest of both sides your signature to thisletter will constitute an endorsement by the American Institutein Taiwan and the Coordination Council for North American Affai-rs of the desirability of concluding such an agreement.Sincerely,[Sigend] David Dean Chairman of the Board and Managing Director [Signed] Fredrick F. Chien Representative Coordination Council for North American Affairs5161 River Road Bethesda, Maryland 20816