declares that it considers that export of textile raw materials by China to the European Community has been developing normally within the availability of supply and in conformity with demand as stipulated in the bilateral Agreement, and that the Chinese side has no intention to impose any restrictions.Therefore, the Chinese Delegation maintains that there is no necessity for the European Community to raise this issue by making a unilateral declaration.Letter from the Government of the People's Republic of China I have the honour to acknowledge receipt of your letter of . . . which reads as follows:'Sir,I have the honour to refer to the consultations held between our respective Delegations for the purpose of amending and extending the Agreement between the European Economic Community and the People's Republic of China on trade in textile products initialled on 9 December 1988, as last amended by Agreement initialled on 14 December 1994 (hereinafter referred to as "the Agreement").2. As a result of the consultations, both Parties agreed to amend as of 1 January 1996 the following provisions of the Agreement:2.1. The text of Article 5 is replaced by the following text:"Article 51. In any Agreement year advance use of a portion of the quantitative limits established for the following Agreement year is authorized for each category of products up to 1 % of the quantitative limit for the current Agreement year, with a possibility to reach 5 % after consultations in conformity with Article 16, paragraph 2.Amounts delivered in advance shall be deducted from the corresponding quantitative limits established for the following Agreement year.2. Carryover to the corresponding quantitative limit for the following Agreement year of the amounts not used during Agreement year is authorized for each category of products up to 3 % of the quantitative limit for the current Agreement year, with a possibility to reach 7 % after consultations in conformity with Article 16, paragraph 2.3. Transfers in respect of categories in Group I shall not be made from any category except as follows:- Transfers between categories 2 and 3 may be made up to 4 % of the quantitative limits for the category to which the transfer is made.- Transfers from category 1 to categories 2 and 3 may be made up to 1 % of the quantitative limits for the category to which the transfer is made.- Transfers between categories 4 to 8 may be made up to 4 % of the quantitative limits for the category to which the transfer is made.Transfers into any categories in Groups II and III may be made from any category or categories in Groups I, II and III up to 6 % of the quantitative limit for the category to which the transfer is made.4. The table of equivalence applicable to the transfers referred to above is given in Annex I to this Agreement.5. The increase in any category of products resulting from the cumultative application of the provisions in paragraphs 1, 2 and 3 above during an Agreement year shall not exceed 17 %.6. Prior notification shall be given by the authorities of China in the event of recourse to the provisions of paragraphs 1, 2 and 3 above."2.2. The Text of Article 11 is replaced by the following text:"Article 111. China will ensure that the supply to the Community industry of raw materials shall be made at conditions not less favourable than to Chinese domestic users.2. Without prejudice to paragraph 1, China undertakes to take such measures as are required to make possible the export of the minimum annual quantities laid down in Annex IV of the products listed in that Annex.In administering exports of the products referred to in subparagraph 1, China undertakes to give favourable consideration, taking into account its export possibilities, to requests from the Community textile industry with a view to meetings its needs.For this purpose, the Community may submit to the Chinese authorities before the end of each year a list of interested manufacturers and processors and, if possible, the quantities of products requested by each of the firms in question.The Contracting Parties are agreed that transactions in the products listed in Annex IV shall be carried out in accordance with Articles 8 and 9 of the Trade and Economic Cooperation Agreement taking account of market practice and normal trade flows."2.3. The text of the second, third and fourth sentences of Article 20, paragraph 1, is replaced by the following text:"It shall be applicable until 31 December 1998."2.4. Annex I which sets out the products concerned by the Agreement is replaced by Appendix 1 to this letter.2.5. Annex III which sets out the quantitative restrictions for exports from the People's Republic of China to the European Community is replaced for the period from 1 January 1996 to 31 December 1998 by Appendix 2 to this letter.2.6. Annex IV which sets out the minimum quantities of textile raw materials which the People's Republic of China undertakes to reserve for the European Community each year is replaced for the period from 1 January 1996 to 31 December 1998 by Appendix 3 to this letter.2.7. The Annex to Protocol E which sets out the quantitative restrictions for economic outward processing operations is replaced for the period from 1 January 1996 to 31 December 1998 by Appendix 4 to this