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(1)

Excellency,

'},..,

..

._, '

I have the honour to refer to t he Agreement concluded between our two countries on July

3,

1959 and to subsequent Agreements, whereby the Canadian Government supplied to the Government of Indonesia food aid grants under the Colombo Plan.

At the Request of the Government of Indonesia, the Canadian Government has offered to provide a food aid grant to the value of $3,000,000 (Canadian) as part of the 1970/71 Canadian aid programme to Indonesia. The offer was conveyed to H.E. the Foreign Minister of Indonesia by note dated May 8, 1970 from H.E. the Ambassador of Canada to Indonesia. The Indonesian Department of Foreign Affairs accepted the offer on behalf of the Government of Indonesia by note dated May 28, 1970 and specified that the food aid grant should be apportioned on the

basis of Cdn $2.5 million for wheat flour and Cdn $0.5 million for skim milk powder by note dated June 30, 1970.

Officials of our two Governments have agreed that this Canadian food aid grant totalling $3,000,000 (Canadian) will be subject to the following arrangements and conditions:

(1) Canada will provide セ^ RNU@ million (Canadian) food aid grant in wheat flour and the balance of $0 .5 million (Canadian) in skim milk powder FAS at a Canadian port; the specifications of His Excellency, Mr. Adam Malik,

Minister of Foreign Affairs,

(2)

2

-the cormodities and arrangements for -their delivery FAS at a designated Canadian port will be agreed upon separately. (2) Indonesia will assume responsibility for the payment of all

shipping and insurance and survey fee charges connected with the marine transport of the skim milk powder and wheat flour from the Canadian port of loading.

(3) Within three months of the date of arrival of the coimD.odities in Indonesia, the Government of Indonesia will deposit in the Special Bank Account entitled BUN (Bendahara Umu.m Negara) Counter-part Fund Canadian the "net proceeds" resulting from the sale of the commodities to the designated Indonesian importers. '!he "net proceeds" shall be the gross revenues paid to the Government of Indonesia by the designated importers at the Rupiah prices

fixed for such cormnodities by the Indonesian Authorities prevailing on the date of arrival of the foodstuffs in Indonesia, less the costs of marine transport and related insurance and survey fee charges from Canada to Indonesia. In the case of skim milk powder the "net proceeds" will include all import taxes and other charges by the GOI DeJ:6rtment of Finance.

(4) The Government of Indonesia will inform the Government of Canada within one month of the arrival of the commodities in

Indonesia of their arrival date and of the prices which the importer is required to pay the Government of Indonesia for the commodities on the aforementioned date. The Government of Indonesia will also inform the Government of Canada of the costs of marine transport

(3)

insurance and survey fee charges of the caronodities supported by the relevant documents.

(5) The two Governments agree that the Rupiah "net proceeds" 1

established in accordance with the procedure set out in Section 3 and 4 above and deposited in the Special Bank Account mentioned in Section 3 above, will be transferred upon the instruction of the Hinister of Finance, to the General Revenue Account of the Government of Indonesia as an identifiable budgetary income item. (6) The Government of Indonesia will provide on the date when

the Rupiah funds are deposited in the aforementioned Special Bank Account and transferred to the Indonesian Government's General Revenue Account a certificate from the Central Bank of Indonesia confirming both transactions, i.e. certifying the amount of Rupiah funds deposited in the Special Bank Account and the amount of Rupiah funds transferred to the Government 1 s

General Revenue Account.

(7)

The two Governments agree that the Rupiah funds arising from the food aid grant and deposited in the Government of Indonesia's General Revenue Account will be expended on economic, educational or technical developn.ent projects. The Government of Indonesia will supply at least annually at the end of each fiscal year

(March 31) a certificate from the Director General of Finance, Department of Finance, indicating the use to which these Rupiah funds have been put.

(4)

4

-(8) The full value of the allocation of wheat flour and skim milk powder is to be shipped from the Canadian port prior to September

30,

1970.

(9) The Government of Canada and the Government of Indonesia, with reference to the grant of $2.5 million (Canadian) of wheat flour and $0.5 million (Canadian) of skim milk powder, will undertake all reasonable precautions to prevent disruption of nonnal trade in wheat flour and in sld.m milk powder. In particular, the Government of Indonesia undertakes (a) to ensure that there is no export of wheat flour and sld.m milk powder during the import period six months following the arrival of the last ship-ment related to this agreanent (specifically to the usual marketing

requirement noted below) and during any subsequent year in which 'Wheat flour and skim milk powder is imported pursuant to this

exchange; (b) not to divert shipment of Canadian 'Wheat flour and skim milk p<:Mder destined for Indonesia. to any other country; and (c) to ensure supplies made available as aid shall be in addition to, and not in lieu of, the commercial operations which could reasonably have been expected in the absence of such supplies.

Any modification of the above undertakings must be approved by the Government of Canada and the Government of Indonesia.

Accept, Excellency, the イ・ョ・キ・セ」Z@ of my highest consideration.

(5)

I have the honour to acknowledge receipt of your Excellency's Note o! to day's date which rcnda as tallows 1

"I

have

the honour to refer to the Agrooment concluded between our two countries on July 3, 1959 and t.J subaec;.u0nt Agreements, t.rhereby the Canadian Government au_e:.plied t o tho Government of Indonesia セッッ、@ aid grants under the Colombo Plan.

At the Request of the Governrn.ant of Ind!'.>neoia , tho c。NNBuセ、ゥ ッN ョ@ Government has offered to J,Jrovi:.lc a food aid grant to the valu.e of $3, 000, 000 Hc。ョ。、ゥセャGャI@ ne pa.rt of tlw 1970/71 Canadian aid ーイッN」イFN_イゥュセ@ to Ind onosia. The offer vt:"\D

conveyed to H .. i.;. the Foreign Minister

or

l.n:!oncn ia by

note dated Mny 8• 1970 from H.E. the Ambassndor Of Canada to Indonesia.. The Indonesian .Department of :b"ore1?)1 Afta.ira accepted the offer on behalf of the gッカ・イョ セ。ョエ@ of Indono ui a by note dated May 28, 1970 and specified that the .food a td grant shoul.d be apportioned on the basis of Cdn 3 2.5

million tor wheat flour and Cd.a $ 0.5 million f or skim milk powder by note dated

Juno 30,

1970.

Of!ic1o.ls of our two Governments have agreed thnt this Canadian food aid grant totalling $3 , 000 ,0DO (Canadian) will be subject to the ヲッャャッキゥョ セセ@ arrang e!!leilt s !"ind conc1i tiono •

(l) Canada will provide $ 2.5 million (Co.nad i an ) food

aid {セ イ。ョエ@ in whoat flour and t1:.e balfl.nce of S 0.5

million (Ca.ns.clia.n ) in skim milk ーッキ [Nセ@ or faセI@ at

e Canadian port; the gr;eoifiontions of the

oo:nmodi ties and a.rrane:e;:.;ents f or their d olivcr-.r FAB at a designated Canudiau port will be aerf)Od

upon ueparately.

(2) Ind o!"leo i a will ョZイョセッ@ responsi bili t -, for t he paymont of nll shipping and insurance w.nG. nurvey foe chal ... f.t)S connected '>1i th the :.1urinc エイセゥNョウ ⦅ー ッイエ@

of the skim milk powder and \-/heat flov.r .fron the cセョオ、ゥ。ョ@ port of ャッ。、Nゥョ [セ @

His Excallency

セiイN@ A.P. Dissonnet

Ainba.a ::mdor iセ Zクエイ。Nッイ、@ inar,y and. Pleni Potentie.ry of Canada .

(6)

2

(3) W1 エィセNNョ@ three months or the dEtte of arrival ッセ@ the

oommodi tieo in Indonesia, the Government

or

lmlonesia

will depos1 t in the Special l>ank AcCC1'.L"lt ent! tled

1'tJN (Bendnhar-e Unum Negara) c」ョlセエ セ jイ ー 。 イ エ@ :?im d Ganadiu n

the ':net proceeds" reeul ting f're>r.i the a nla of the co2Vod1ties to the dooit,µiated Ind.oneBian 1m:portera .

セィ・@ "net prooeodsn shall be t h e gro9s revenues セ セゥ、@

"''o the Government o! Indonesia by tht'! de$Jie;1:1t&d

ゥューッセエ・イ。@

at

the Rupiah prieea fixed tor suoh

0().mP.Jod1t1ee by the Indonesian Autbor1t1os prevatlint::

on the date of arrival of the foGdstuffo in Indl'lnaaia,

1aso tbe

costs 0£

m.:...rine

transport

and

イ・ャオエセ、@

insuranoe nnd survey fee charges £rom Canada to Indonesia . In the case o:t skim milk powder the "net

ーイッ」・・、ウセ@ will include a11 im;po:t taxes and other

charges by the GOI Department or F!mi.nce.

(4) Th3 Gov s rnL"'e nt of I .nd onea1a wiJ.l in.f orm the Government

ot

Canada within one month of the arrival

ot

the commodities in Indone i a of their arrival da te and of the prices which t h e importer is r equired io ゥセj@ the Gover .w..'llent of Indonosia f or エィ セ@ 」ッ Zセ ッ イャゥ@ t ies on th<? a .for enent ione d date. The Government of ln<l or1aoi a will also inform the gッカ・イョNセ・ョエ@ of Cu.nada of the costs of marine transport QNョウエオセ 。 Nョ」 」[@ a.nd s ur vey fefl C!H1r gee; o f the co:.r::todi 1; io n supported b:- tr.o rele·.ri.w.i, doc !lrnent a .

{S) The two Governme nts n groc "thu t t ho ゥエオー ゥ セセィ@ ".no 't frooe eds", e s t ablished in a ocr::>rdance with thil ーイ ッ」ッ 、 オイ セ@ se t out in Section 3 and 4 above and do positod in th e セ ー・ 」ゥ ・ ャ@

Bank Ac count mentiot'l ed in Bectiv11 ) セッ ッカ・L@ will be

tranufer r e t1. u :p.:m t h o in s tructi on of. ·t.ht-1 Viini.etor of Fine.nee, t o t he General Hevanue Account of the

Government of Indonesi a a s an identif i a ble budgetary 1.neomo itor.i ..

(7)

•,

_,_

(6)

!be

GoY•blH.at

ot

In4onee1a will prO'fide on

ti14'

4ate

wbt11

tll• bplab fund•

&r•

4•pos1 ted 1Jl

"be

atore-•••t1oae4 S»eoial

JS&Qk

Account

and エイ。ョ。エ・イセ、@

to

th•

In4oneaian Goverim.ent•a

General

r・カッセオ・@

Aooowtt

a

ッイゥQエQッ。セ@

tJ:om

th•

Central

Ja.r.ik

ot

Iadonoaia

ooatira1q l>otb u..uao,1one,

1.e.

"r•U71nG

'he

a.out

ot

bJlah

tu41

4•poelte4

1a

th•

s,.olal

JSaDk

.loeoan1i ud

ill•

uoui ot

Rupiah tvade traAete""4

u -·

tnamae•t'•

セ@

aneaue Aooown.

(f

I

DA

WO oキセオ@ *Cft• thAt the Rtap1ah tunda

ar1•1na

t»oa

th•

.tooa

a14

pant

and

4epos1iea in

'1lo

lovommnt

ot

XDaone•u•e

toau.1

aennue

Aooount

vUl.

bo ezpe.n4e4

on eooaoaio• e4v.oa,1oaa1 or teelmloal 4nelo:snent

proteo'••

·th• oッGヲ・イq。ッョセ@

ot

In4oneela

w1l.l

aupplJ

at

. 1 ...

t

IUUlUll.1'

at the

h4

ot

each tieo.i 7ear (March

'l)

a

ッ・イゥエエゥ」。セ@

b:om

the

DJ.rector General of .rinanoe,

De-セエ@ ·d

Jina.not•

·w1oauna

ihe uae to vhloh

tbctae

awplah

.tut•

ban • •

llU4'•

(8)

!h•

Ml

value ot 1be 'aUooat1on or \ilhtat nour and

ekia

llilk

pewder ia

to

l:te abipped rrom

the Canadio.n

JOrt parlor

S.P'l••'b•r

'°•

1970.

(t)

!be

OoYerwnt

ot

Canada and the GoverDDent or lndoneoia,

vith

rofennoe to the

grant

セ@

I

2.5 million

(Canad.inn)

ot

vh••t

a.ou and

t

o.s

au

llon (O&aadian)

or ekJ.m

m1l1c

powder

1

. will \Uld•rtake al.l

roaeonable precaution• to

prevent 41erupiioD o! normal

t.ra.de

in

\#heat

1'l.our and

ln

•kim

so1lk powder. In pa.rticule.r, the Government of

Xndoneeia un4ertakea

(a)

to

enaure

that thero to no

eqort

ot

vheat

:flour and aldl:l milk power durina the

laport

period

atx aontba

セッャャッカゥョウ@

the arrival

ot

the

le.et

•hiPNnt related to

thS.a.

agreemont (opea11'1oall.y

セ@

the

オウセ@

marketing roquirc::iont noted below) and

4uring an,y euboeqaent

セ。イ@

1n

which

whoat

flour

ana

okim

milk

povder is

Qューッイエセ、@

purauant to

thin

OAchrutgeJ
(8)

4

-(b) not to d ivert e hi p!'-ent of Can ;J.cU :m whont f lour e.nd ekim milk Powder destined for Indonesi a. to any other oountrys and (c) to ensure supplies エゥォセ 、・@

available as aid shall be in a ddition to, a nd not in lieu. o f , t he co.:mle rcia l ope!.·n tiono whi ch c o uld reoso:la bly h£.ro been 。 クNAGセ 」 エ・、@ in the nbsc ice of such ouppliea.

Any modif ication oi the above undertn1: i n.s;s ::nu st be approved by the Government of Canada and the Govar nnent of

Indoneein."

I have the honour t o conf irm tha t tho propos ed flrrangements a.o deaori bcd in your Note are nccepta l)le to my Government and t o agree that Your Excellency •a Note nnd t his reply shall be r egar ded as constituting and 。 ァイ・・ セ・ョ エ@ between our two Governments w1th effect f'ro m the date of this Note.

Please, Exoellenoy, acoept the renewGd asourancee of my highest oonai dora tion.

Signed

セOゥDCO maiL ik@

G「セ

イ@

of Fore i gn

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