Selanjutnya

..ARltANG.cil1&'1fT B 1T\lEEN THE GOVBHNMENT OF THE REPUBLIC

OF INDONESIA AND THE GOV.c;H.NMJ.i,'NT OF THE STATE OF SINGAPORE FOR THE SUPPLY OF COTTON YARNS TO THE REPUBLIC OF INDONESIA, PARTIALLY AGAINST RAW carTON

TO BE ｄｾｌｉｖｅｒｂｄ＠ FROM THE UNITED STATES PL 480 PROGRAMME

The Government of the Republic of Indonesia and the

Government of the State of Singapore, desiring to make arrangements for the export of cotton yarns amounting to approximately Malayan

$ 3,420,000 from Singapore to the Republic of Indonesia, and for the

acceptance in Singapore of raw cotton of the value of U.S.$ 733,663, in partial payment (65%) for the cotton yarns so exported (the

balance (35%) to be paid in Malayan dollars) have concluded an arrarigement as set forth below.

This arrangement

was

made in the knowledge that the

Government of the United States of America have agreed to issue to the Government of the Republic of Indonesia a purchase authorization (hereinafter called PA) for raw cotton pursuant to Title I, United

States Public Law 480-83rd Congress (hereinafter referred to as PL 480), and have agreed that the Government of the Republic of

Indonesia may transfer, as needed, to the Government of the State

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of Singapore the authority to sub-authorize the PA.

For the purpose of this arrangement the rate of conversion

between the

u.s.

dollar and the Malayan dollar will be: U.S.$1=

Malayan $ 3.03

I. The Government of the State of Singapore:

A. will facilitate the export of cotton yarns manufactured

in Singapore, at competitive prices;

B. will arrange for the acceptance of raw cotton ma.de

available to the Government of the Republic of Indonesia by the United States under the PL 480 in partial payment for the FOB value of the cotton yarns exported to

importers in Indonesia under this Arrangement;

c.

will arrange for the contracting for the raw cotton

under the PA prior to 31st May, 1960 and for the

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-extended by agreement between the Government of the Republic of Indonesia and the Government o:f the United States;

D. will arrange that the raw cotton under the PA shall

be imported under the applicable regulations of the United States Department of Agriculture, and agree

that the raw cotton shall not be imported into Singapore llnless respective Letters o:f Credit for cotton yarns have been opened and further, on the understanding that the import of raw cotton will only amount to 65% of the FOB value of Letters of Credit so opened.

E. will inform the Government of the Republic of Indonesia from time to time of the net values of shipments of cotton yarns, of credits opened for raw cotton, and of the net values of actual shipments of raw cotton received;

F. recognises that the raw cotton imported from the United States of Anerica to Singapore under this arrangement will be in addition to raw cotton that would otherwise be imported from the United States of America and

countries friendly to the United States of America and it will not result in increasing the availability of raw cotton or cotton yarns to countries unfriendly to the United States of America;

G. accepts that claims in respect of deficiency in quality or quantity of cotton yarns shall be settled by

negotiations between exporters in Singapore and importers in Indonesia in accordance with normal commercial practice,

and that any deficiency in qnali ｴｾＬｲ＠ and quantity will be

made good by additional supplies of cotton yarns, or, failing . which, by remittance in Malayan dollars in favour of importers in Indonesia.

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H. (1.) if,. after one month from the date of transfer of the

authority to sub-authorise the PA for raw cotton, commercial contracts for the supply of cotton yarns have not been

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importers to a minimnm of MalavR.n $ 1. 000, 000, accepts thatthe Government of the Republic of Indonesia may

after informing the Government of the State of Singapore, be released from its undertaking under Paragraph II B below in respect of the balance of the total specified in that paragraph;

(2) In the event that the Government of the Republi c of Indonesia is prepared to suspend its right under the preceding sub-paragraph for an additional period

of one month, accepts that the Government of the Republic of Indonesia may specify a further minimum value of

contracts which shall be concluded within the additional one month.

II. The Government of the Republic of

Indonesia:-A. will transfer to the Government of the State of Singapore the authority to sub-authorize the PA for raw cotton

equivalent to the value of U

.s.$

733, 663-, as soon as

possible after the Government of the Republic of Indonesia has received the PA;

B. will arrange for the import of cotton yarns from Singapore and will issue licences and/or make allocations to importers in Indonesia as soon as possible after the coming into

effect of this Arrangement, provided that sixty-five (65) percent of the total FOB value of the exported cotton yarns

shall be equivalent to

u.s.$

733,663 worth of raw cotton.

Such licences shall be valid only for Singapore and shall be distinguished - from ordinary import authorizations by notation: "For P.L.480 Transactions only" . •

The import licences and/or allocations shall be valid until 30th June 1960 but this date may be extended pari passu with the terminal dates for the contracting for, and shipment of, raw cotton from the United States mentioned in paragraph IC above ;

C • will arrange that importers in Indonesia of co.tton yarns complete their purchase contracts with exporters in

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-that such purchase contre,cts call for a shipment date as early as possible and mutually convAnient;

D. will solely be responsible for the deposit to the account

of the Government ｯｾ＠ the United States of America of the

Rupiah equivalent of U.S. dollar disbursement as required under the P.L.480 Agreement between the Governments of the Republic of Indonesia and the United States ·of America and und er the P.A.

E . will recomend to the Government of the United States of

America a reasonable extension of the P.A. in the event that the fulfilment of the arrangement as mentioned in paragraph IC above is prevented by some occurrence, as there are: railway and natural catastrophies, fire,

explosions, strike, lock-out, war, riot, civil commotion as well as other events which will generally be recognised as cases of "force majeur", over which the Government of . the State of Singapore has no control;

F. recognises that the cotton yarns imported :from Singapore to Indonesia under this arrangement will be in addition to the cotton yarns that would otherwise be imported from the United States of America and countries friendly to the United States of America.

III. General Stipulations

A. Any residual amount of sub-a uthorization a gainst the PA

in the neighbourhood of u.S. $1,000 after taking into account adjustment refunds made, for which the Urtited States cannot reasonably be expected to make shipment, shall be settled, without delay, by the Government of the Republic of Indonesia to the :foreign exchange bank of Singapore in cash.

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-Done in duplicate, in the English language, at

Djakarta, this ･ｩｧｨｾ･･ｮｴｨ＠ day of November,

1959.-For the Government of the Republic of Indonesia:

Signed

( 's 11 _{ｄｾ＠ 0 N 0 )}

Acting Secretary-General, Department of Foreign Affairs.

For the Government of the

ｓｴ｡ｴｾｾ＠ Singapore:

Signed

(ABU BAUrff BIN PAWANCHEE)

?ermanent Secretary,

Commerce

&

Industry Division,

Ministry of Finance.

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PROCEDURE

A. For cotton yarns thet will be imported by the Republic of Indonesia

ｬｾ＠ The Government of the Republic of Indonesia wl 11 1 ssue

import licences and/or make allocations to its importers

for the FOB value of the cotton yarns.

Ｒｾ＠ Importers in Indonesia wl 11 place orders for the cotton

yarns with exporters in Singapore and open Malayan dollars

irrevocable sight L9tters of Credit in favour of exporters

in Singapore to aover

the

purchases • . All contract prices

shall be expressed in Malayan dollars. The Malayan dollars

irrevocable sight Letters of Credit w111 be opened

immediately after conclusion of the relevant contract and

advised through the foreign exchange bank of Singapore.

Ｓ ﾷ ｾ＠ EJtPorters in Singapore wi 11 ship the cotton yarns and draw

drafta against the Malayan dollars irrevocable sight L9ttera

of Credit.

Tbe drafts shall be drawn separately (a) for manufacturing

charges expressed in Malayan dollars representing the aum

ot

_{thirty-fl ve (}

35)

_{percent ef the contract prices for}

exported cotton yarns, and (b) for raw cotton in partial

payment for exported cotton yarns expressed in Malayan

dollars representing the sum of sixty-five

(65)

percent

-of the contract prices for exported cotton ｹ｡ｲｮｳｾ＠

Ｔｾ＠ The foreign exchange bank of ｓｩｾ｡ｰｯｲ･＠ will negotiate

draf'ts drawn by the exporters.

5.;

The t'oreign exchange bank of Singapore will forward the

drafts and relevant documents to the foreign exchange

6.

The :t'oreign exchange bank o:r Indonesia wi 11 make reimbursement

to the :t'oreign exchange bank o:r Singapore in Malayan dollars

:t'or the sum o:r draf'ts :t'or manu:t'acturing charges, the amount

o:r which corresponds to that as stipulated in paragraph 3(a)

in this Procedure, and credit the sum o:r drafts for raw cotton

in partial payment for exported cotton yarns, the amount of

which corresponds to that as stipulated in paragraph 3(b) of

this Procedure, to the Malayan dollar Escrow Account in the

name of the foreign exchange bank of Singapore.

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The amounts in the Malayan dollar Escrow Account wi 11 be

debited only in accordance with the terms stipulated in the

paragraph B.8.(i).

ｂｾ＠ For the United States raw cotton that will be imported

by Singapore

1. The United States Department of Agriculture

(Commodity Credit Corporation) wi 11 issue Letters of

Commitment to the United States bank nominated by the

foreign exchange bank of Indonesia in respect of the

u.s.

dollar Letters o:r Credit to be opened under the PA by the

foreign exchange bank of Singapore.

2. Importers in Singapore will place orders for the raw cotton

with exporters in the United States.

3.

The :t'oreign exchange bank o:r Singapore will open

u.s.

dollar

Letters o:r Credit in i'avour of the raw cotton exporters and

advise them through the United States bank holding Letters o:r

Comm! tm.ent which have been issued.

4.

Exporters in the United States wi 11 ship the raw cotton and

draw dra:t'ts against the

u.s.

dollar Letters o:r Credit.

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-exporters in the United States in

u.s.

dollars and will forward

documents of title to the .foreign exchange bank of Singapore.

6.

The United States Department of Agriculture (Commodity Credit

Corporation) will make reimbursement for the payment by the

United States bank.

7.

The United States bank will notify the foreign exchange bank of

Indonesia and request it to deposit an equivalent amount of .

Rupiah to the Special United States Account, and the foreign

exchange bank of Singapore will confirm.

8.

The foreign exchange bank of Indonesia wi 11

( i ) debit the Malayan dollar Escrow Account in the name of

the foreign exchange bank of Singapore the amounts of the

u.s.

dollar drafts; (at the rate of exchange

u.s.$

1 = Malayan

$

3.03 )

(ii ) credit the Special United States Government Account with

appropriate amounts of Rupiahs.

9. (

1 ) the foreign exchange bank_ of Singapore wi 11 make payment

to importers of raw cotton of all

u.s.

dollar sums remitted

by the United States shippers in respect of shipments deficient

in quall ty or quantity (or in respect of other claims as

specified in the ｐａＩｾ＠

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( ii ) The United States bank will report to the Commodity 1

Credit Corporation at the end of each calendar quarter the total

amount of such U

.s.

dollar sums remitted during the quarters.

(iii ) On demand by the United States bank, the foreign

exchange bank of Singapore wi 11 pay to the United States bank

.for the account of Comm.odi ty Credit Corporation a sum in

u.s.

dollars equal to the total amount of the

u.s.

dollars sums

remitted during the ｱｵ｡ｲｴ･ｲｾ＠

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-(iv') On receipt of the ｵｾｳＮ＠ dollar payment from the foreign

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exchange bank of Singapore the United States Department of

Agriculture w.l.11 issue a P.l for raw cotton to the same

u.s.

dollar value to the Government of the Republic of Indonesia

who 'Wi 11 as soon as possible transfer all author! ty

to

sub-authori se it to the Government of the State of Singapore. This

P.A w.l.11 authorise replacement of cotton w.l.thout a deposit in

local currency, and United States Department of .Agriculture

would look to Singapore for settlement of any claims which

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might arise under the refund PA. Only ninety-five

(95)

percent

of the invoice value will be financed under the refund PA. I

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