Selanjutnya

Tfie

bvemment

e2

the

Rapubl ic

'of

Iadones

i a

and

the

*

.

J%ovemment bf

Japan

daeilin&

t

a make

a m g e m n t s f o r the

.

e m @

oB

.

cotton t e x t f l e a

d/&r

yarns.

from

Japan

t o

the

Republic

of

~ o & s f a , ani far tb aoce@.anc'e

i n

Jaian

of

. .

.

- .

.

raw cotson

of t h e

vdue

of

U.9,

dollars 10,500,000

in

parCiaJ-paymnt foi*

tbe

cottsn

t e x t i l e s

and/o~

yarns so

, ' .

- gz@exp&

($he

b a l w r t t o

be

paid

i n stjarling)

haoc

concluded

1 .

*,4&&etk

a s

set

forth

below,

_c

-

This"kmngement

was

niads

in

the

knowledge

that

the

-

-

2 '-

.

r.

.

-

I

:<3:

I . - - ,

.

:

.

-

.

..

.r

Exdonesia

by

the

United

S t a t e s

under

PL

480

in

I

p a r t i a l

payaent

f o r the

FOB value

of

t h e

cotton

1

t e x t i l e s

and/or

.

yarns

exported

t o

importers

i n

I n d a n k l a

under

@is.

Arrangement

;

1

C;

w i l l

arrange

f o r

t h e

contracting

f o r

t h e

raw

cotton

I1

under

the

PA

p r i o r

t o

October

31,

1964and

f o r

t h e

11

shipment

p r i o r

t o

~ovember

30,

1960,

with

t h e

under-

il

standing

t h a t

these termimd

contracting

and

shipping

d a t e s

may

be

extended

by

agree=*

between

the

Govem-

I I

lrrent

of

t h e

Eepublie

ef

Indonesia

and

tha

Government

Of

the

United

States;

D.

w i l l arrange

t h a t

t h e

r a w

cotton

under

t h e

PA

s h a l l be

I

imported

under

t h e

applicable

regulations

of

t h e

United

S t a t e s

Department

at'

Agriculture,

and

agree

t h a t

the

I

.

-

-

raw

cotton

s h a l l

not

be

imported

t o

Japan

unless

I .-a - 2

.

. . .

reslpective

L e t t e r s

of

Credit f o r

cotton

t e x t i l e s

and/or

y a m

have been

opned,

with

the

understanding

t h a t

t h e

' ' -

..

r-e

CS m

cotton

te

be

imported

w i l l be

(55)

percent

1

.

:

u d j o r . 1 6 5 ) percent

of the fetal-Cnt

a b I ( B v ~ 1 u e

al

I

,~

' . W~ '*:

~ e t t e l g

of

&edit

o p k d

f o r

cotton

$&$&I*

and/or

-

. .: ',.I. . ,

.

.'

I

I

yams

m ? p ~ c t i v e l , y ;

E.

a c c e s s

t h a t

claims

i r i

respect

or

quantity

of

cotton

texkctiles

and/or

yarns

s h a l l

be

1

i

s e t t l e d

by

negotiations

between

exportera

i n

Japan

and

Importers

i n

Indonesia

i n

accordance

with

normal

corn-

. .

.

II

mercial

practice,

and

t h a t &y

daficiency

i n . q u a l i t y

'r

'

i

. ,

..

of

cotton

textile.@

a r d i t i r x a , m

o r ,

fairing

t h a t ,

by

,

r e q t a r t e e

i n

s t e r l i n g .

i n favour

of

impofierrr

i n

hdameeia;

E.

w i l l

infoza

the

Bovttmvnt

of

the

~epubliic

of

friem

.time

t o tiw?

of

the

ne6

value

of

s h i p e n t of

>

-cotton %exbiles

and/or

yams,

of

crediks

opened

f o r

rik

c o t t ~ ~ , ,

and

of

tb

net

B-

af

a s t u q

shipment

of

a w

,

cow3

an;

0.

(1)

i f ,

a f t e r

one

aonth

f rt%n

the

date

of

t r a n s f e r

of

&e

autho-rity

t o

sub-auf;horine the

PA

f o r raw iotton,

coaa-

mereial

contracts

f o r

the supply

of

cotton

t e x t i l e s

and/or

yarns

have

not

been

concluded' between

Japanese

' -

exporters

and

Xqlvnesian

importars

t o

a

minimum

,of

fi,800,00,

ae,cepts

t h a t

t h e

Bowrrnnent

of

the

Re

of

~ o n e s i a

may,,

a f t e r

informing

t h e

EoVerment

of

,

Japan,

be

released

-f&m

i t s

u d e r t a k i n g

under

Parag

I1.B.

belm

in

respeet

of

t h e

balance

of

the

t o t a l

p e

eif

ied

f

n

t h a t

paragraph;

( 2 )

b

the

event

t h a t

t h e t;overnnmqt

of

the

B6

Iadonesda

i s

prepared

t.o

suspend

i t s

right

under

t h e

preci=ding

sub-paragrapti

~ ~

f o r

an

aa:ditfonal pefiod

of

-

:

one

nronth,

,

accepts

t h a t

the

Government

of

the mpubfic .,

of

kdonesia my

specify

a

further

ininimwn

value

6f

e o n t r a c ~ s

whit&

sha3.1.

be

concluded

within

the

additional

-

one

month;

I

S t a t e s

of

dmerioa

t o

Japm

under

t h i s

Arrangem

-

be

i n

addition

. t o

raw

cotton

t h a t

would

otherwise

be

,

--

imporfed

from

the

United

S t a t e s

of h m r i c a

and

countri

E

. .

f z b n d l g .

t o

the

United

s t a t e s

of

America.

' I

-

'

11.

The

Government

o f

the

Republic

-

of

k d

anes3.a

.

,.

>

1

A.

will

t r a n s f e r

t o

t h e

Government

of

Japan

the

authsri+iy

t o

sub-authorize

t h e

PA

f o r

raw

m t t o n

equivalent

t o

the

d u e

of

U.

S.

dollare

.LO.,

fia);'000

as soon

a s

the

Government

of

tibe

Republic

of

M

onesia

w i l l .

have

1

received

the

PA;

B.

w i l l

m a n g e

f o r

t h e

import

d

cotton

t e x t i l e a

and/or

y~rns

f

m m

Jap

m

and

will

i . u e

I i c n e e s

and/or

n l c e

'

%

1

allocations

t o

importers

i n

b d i n e a i a

as

soon

a s

POSdble

a f t e r

t h e

cclming,

i n t o

e f f e c t

of

this Arrangement

1

p o d d e d

that

( 5 5 )

p ) r c n t

of

t h e t o t &

FOB

v a e

of

'1

the

exported

cotton

t e x t u s

andfir

( 6 5 )

percent

aP

the

I

t-el

FOB

value

af

the

exported

cotton

y a m shall

be

I

cotton.

Suoh

liacnces

s h a l l

be

valid

only

i n

J a p a and

I

&all

be

distin@ighed.

from or&nary

ireport

mthorizat-

imm

by

the

notat

ion:

"For

PL

480

Transqotions

enlyn.

The

import

licence@

and/or

thlocrations

s h a l l

be

valid

u n t i l

September

30, 196ds

but

t h i s

date

may

be

-

I

t e x t i l e s

and/or

yarns

coaplete

t h e i r

purchase

'

.

i t

. -

5

-

8 .

contracting

f o r , a d

shipment

of

raw

cotton

frem

t h e

United

S t a t e s

mentianed

i n

paragraph

I.C.

above;

C.

dl1

arrange

that

importers

i n

I n d ~ n e s i a

of

cotton

hentracts

with

exporters

i n

Japan

as

expeditiously

4

L ₁₁₁₁

.

as

possible,

and

w i l l

arrange

t h a t

such

purchase

.

-

'r

centracts

c a l l f o r

a

shipgent

date

as

e a r l y

as

is

Y

I

possible

and

mt

ually

convenient;

D.

w i l l s o l e l y

be

responsible

f o r

t h e

deposit

t o

tihe

.

account

of

t h e Government

of

the

United

S t a t e s

o f

I .C

W r i c a

of

the

Rupiah

equivalent

of

U.S.

d o l l a r

dis-

.

ti

.m

bursellrent

as

required

under

the PL

480

Agrewent

between

t h e

Governments

of

t h e

Bepublic

of

Indorresia

.

I

>

_aad

of

the

United

S t a t e s

of

America

and

under

t h e

PA;

-

&

w i l l

recolmmend

t o

t h e

Govelr~ment

of

t h e

United

S t a t e s

.

.

C

of

America

a

reasonable

extension

of

t h e PA,

i n

the

event

t h a t

fulfilment

of

t h e

arrangement

as

mentioned

i n

paragraph

I.C,

is

prevented

by

some

occurrence

.I

.

over

which

the

G o ~ ~ r n m e n t

of

Japan has

no

control;

1 .

1

F.

recogniws

t h a t

t h e

cotton

t e x t i l e s

and/or

yarns

8.

-

lmpor$ed

from

Japan

t o

h d o n e s i a

under

this

Arrange-

ment

w i l l

be

i n addition

t o

the

cotton

t e x t i l e s

.- .

r

I

and/or

yarns

t h a t

would

otherwise

be

imported

from

the

:

/

United

S t a t e s

of

b r i c a

and

other

countries

f r i e n d l y

t o

the

United

S t a t e s

of

h l l c a .

I

Y

L

111,

General

s t i p u l a t i o n s

r

& Any

resfdual

amount

of

sub- authorization

against

t h e

1

11

I

1:

I

,,

6

-PA in the neighbourho od of $ 1,000 after takin e: into

account adjustment refunds made, for wh±h the United

State s can not reasona bly be expecte d to make shipment ,

shall be s ettled, without delay, by the Government of

the Republic of Ind om s ia to the foreitJl exchanee bank

of J apan i n sterling cash.

B.

Commercial contracts for the delivery of the cotton textiles and/or yarns shall be made on terms to be

negotiated between exporters in J apan and i mporters in

Indonesia .

c.

The annexed Procedure shall be re garded

as a

part of

this Arran gement .

IN WTINESS WHEREOF, the undersigned , being duly authorized ,

have sit,ned the present Arrancement .

DONE in duplicate , i n the English lane;uage, at Djakarta,

this twe nt y-nint h day of December,

1959.

For the Government of the For the Government of

Republic of Irxi onesia: Japan:

Signed

Signed

R. SOEWrro KOESOEMOWIDAGDO Secretary-General,

TAKIO ODA

Ambas sador Extraordina ry

and

Plenipotentiary. Departroont of Foreign Affairs.

I

P R O C B D U R E

-

_'

A.

_{For cottofi}

textiles

_and/or

yarns

_{t h a t ~ ~ ~ ~ . u p o r t e d}

- '

I

' , %

L

!he Government of the Republic of M o n e s i a

w i l l

issue L

L '

import licences and/or nmke a l l o c a t i o n s t o

its

importers 8

11

-.

Exporters in Japan

w i l l

s h i p t h e cotton t e x t i l e s and/or .I " yarns and draw d r a f t s against the s t e r l i n g irrevocable

s i g h t L e t t e r s of

C r e d i t .

The d r a f t s

s b l l

be drawn se-

C'

.

~ r a t e l y (a) f o r manufactudng charge expressed i n

I . '

f o r the

FOB

value of the cotton t e x t i l e s and/or yarns.

I 2. -porters

i n

Indmesia

will

place orders f o r the cotton

t e x t i l e s and/or yarns with exporters i n Japan and open - ,

11

a t e r l i n g irrevocable

si&t L e t t e r s

of Credit i n favour

I

I

of exporters i n

Japen

t o cover the purchases. A l l c o n t r a B prices s h a l l be expressed i n s t e r l i n g . The s t e r l i n g

irre-

vocable s i g h t L e t t e r s of Credit

w i l l

be opened immediately a f O e r conclusion

of

the relevant contract and advised

through

the

foreign exchauge bank of Japan.

I

s t e r l i w representing respectively t h e sum of

(35

per- -

eent of t h e contract prices f o r exported cotton yarns and/or t h e sum of (45) percent

of

t h e contract p r i c e s f o r exported cotton t e x t i l e s , and

(b)

f o r raw cotton*

in

partial

payment f o r exported cotton t e x t i l e s and/or'

yarns emressed i n s t e r l i n g representing respectively

-

- t h e

a m

of (65) percent

of

t h e contract prices f o r

exported cotton yarns and/or th.e

sum

of (55) percent o f

4.

The

f a r e i g n

exchange

bank

of

Japan

w i l l

negotiate

d r a f t s

drawn

by

the

exporters.

1

5.

The

foreign

exchange

bank

of

Japan

w i l l

forward

tb

drafts

and

r e l e v a n t

documents

t o

t h e

f o r e i g n

exchange

bank

of

Indanesia.

I

6.

The

foreign

exchange

bank

of

Indanesia

w i l l

make

re-

11

imbursement

t o the

foreign

exchange

bank

of

Japan

in

II

s t e r l i n g f o r

tke

q u a o f

d r a f t s

f o r

manufacturing

charges,

1

the

mount

of

which

corresponds

t o t h a t

as

s t i p u l a t e d

in 1

paragraph

3.

(a)

in

t h i s

Procedure,

and

c r e d i t

the

sum

of

drafts

f o r

raw

cotton

i n

partial

payment

Tor

exported

in

t h i s

Procedure,

t o

t h e

S t e r l i n g

%crew

Account

.ln

the

7.

'?he s t e r l i n g

anmmts

in

t h e

S t e r l h g

Eacrarw ~ c c o m t

w i l l

in

paragrag&

B.

8.

(i).

. . . . . . . . . . .

1

.

The

United

States

Department

of & r i c u l t u r e

(Caamodfty

Credit

Corporationj

w i l l

i s s u e

Lel;ters

af

Golimdtment

t o

bank

of

Indonesia'

in

respect

o f

t h e

d o l l a r

Letters

of

Credit t o

be

opened

under

the

PA

by

t h e

f o r &

exchange

bank

of

Japan.

b

-

I

2.

Impok.t;ers

i n Japan

w i l l

place

orders

f o r

t h e

raw

cottoa,

a

+

..

3.

The f o m i g ~

exchange

bank

of

Jqaa

w i l l

apen

d o l l a r

I

btters

of

C r e d i t

i n

f a v m r

of

t h e

r a w

cotton

exporters

_,

and

adgise them

through

the

United

States bank

holding

l e t t e r s

of C

~

i

~

issued.

n

t

7. 8

4.

-

Exporters

Sn

the

Unlted

S t a t e s

w i l l

s h i p

the

r a w

c o t t o n

and

draw

drafts

against

the ' d o l l m

Letters

of

Credit,

5.

The

United

Statesbankw921negotiate

t h e d r a f t s

a d

pay

exportem

i a

t h e

United

S t a t e s

i n

dollars

and

w i l l

forwar

docuiaents

of

t i t l e

t o

the

f o m i g u

exchange

bank

of

Japan

6.

The

Unkted

States

Department

of

~ g s i c u l t u r e (Commodity

Credit

Corporation)

w i l l

make

reimbursement

f o r

the

payment

by

t h e

United

States

bank.

7.

' S h e P n i ~ d S t a t ~ b a n k w i l l n o t i f y t b e f o r e i g n e x c h a n g a r

bank

of

Indonesia

arnd

replest it

t o

deposit

an

equivalent

I

'

'

mount

of

Rupiah

td

t h e

Special

United

States Account,

and

the

f o m i g n

exchange

bank

of

Japan

will

confirm.

$

-

The

fomigu

exchange

be*

of

Indonesia

w i l l

. .

( i )

debit;

the 6 t e r l i n g

'&craw

Account.

i n

t h e name

of

..

..

the

Pweign

exchange

bear&

of

Japan

the

amounts

of

the

d o l l a r

d r a f t s at

the

rate of

exchange

1

pound

s t e r l i n g

=

2.8

U.S.

d o l l a r s ,

( i i ) c r e d i t

tb

Special

United

States

Gownunent Acc0un.t;

with

appropriate

amounts of fbpiah*

( i )

The

foreiga

exchange

bank

of

Japan w i l l

Pay-

s

the

quarter.

(iii)

On

demand

by

the

United

States

bank

t h e

f o r e i s

- "

I

-

"

&change

bank

of

Japan

_{w i l l}

pay

t o

the

United

Statea

.-

bank f o r

the

account

of

Comodity

Credit

Corporation

_ ,

-

.'F

.

a

sum

in d o l l a r s

equal

t o

the

Cotal

amount

of

thea,

~

-change

b@

of

Japan,

United Stqtes

Department,

o f

-

.

" r

,r

. .

: ,

December

29,

1959.

w,=

-4

Exaellency,

I

have

t h e

honour

t o

r e f e r

t o

our

negotiations

leading

up

t o

t h e

signing

of

t h e

.brangement

betw

Govermnt

of

Japan

a @

t h e

Government;

of

t h e

Republic

' .

of

Iadonesia

f o r

t h e

Supply

af

Cottm

Textiles and/or

.

Yarns

t o t h e

.Bepublie

of

Indonesia,

p a r t i a l l y

against

Raw

Cotton

t o

be

delivered from

the

United

S t a t e s

of

. '

8.

Arnerica

under

the

United

S t a t e s

PL

180

Programme

csn

t h i s

day,

and

t o

confiw,

on

behalf

of

t h e

Govermment

o f

.

.

Japan,

t h e

following

understanding

reached

during

t h e

_..

course

of

the

negotiations.

. .

I.

The

Government of t h e RepubZic of Indoneah

will

not

an

objection

t o

t h e formation

of

t r a d e

I

-

bodies

by

the

exportem

i n

Japan

in

conrre&ion

with

tbq

.

,

' 8

exportation

of

cotton

t e k i l e s

and/or

yarns

under th&a

';r, 8

-

'! '

brrangement.

, I ,

..

I

8

'.

.

XI

.

with

f i f e i a c e

t o

II.E.

of

t h e

~ r r a n g e m n t ,

. ,

3

% m e

occurrencs

Dver

which

t h e

Gove-ent

of

Japan

has

..

n o

contmln

s h a l l

be

deemed

t o

r e f e r

t o

such

events

as

i*

railway

and

nat&

catastmphes,

f i r e ,

explosion,

strikeC

lb&-ou%,

war,

r i o t ,

c i v i l

csmotion

as

w e l l

as

other

even%s

which

w i l l

generally

ke

recogniaed as cases o f

force rqjeure.

;.

.-.

H i s

Excellency

.

R.

S o m i t o &esoenaridagdo

Secretary-General

,

* '

.

XU.

Tha

foreign

oxchango

bunk

of

Japan _. aid

the

foreign

_-

I

&na@ng*

bank

of

Indonesia

muntionod

i n

tha

Procadurn

of

-

t

he

siid

h~rsang&nt

arc

the

Bankc

of

Tokyo,

'

Oscrka

isnd

the

TndcmeaLa,,

Djakarta, r o ~ p c + t i s c l ~ .

.

.I Y

fV.

In

case there

should

bo

an

incrcaau

i n

the

t o t d .

pirw

cotton

whioh

i s

iwrimg~d

by

the

Govommunt

-

ro'an.trios

under

th6

PL

480

Agmmant

with

the

Unit&

[n&.msip.ugrees

eo

r&.w&

75.per~fin%

ef

the

&cr~&:aod

I..

amun% ~~.

at

'raw

:@gtton

for

Japan.

.