MEMORANDUM OF UNDERSTANDING BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA AND
THE GOVERNMENT OF CANADA
The Government of the Republic of Indonesia and the Government of Canada,
Desiring to strengthen economic co-operation between their two countries on the basis of mutual interests, and
taking into account the friendly relations existing between their countries,
Have decided for the purposes of assisting in t he development of the Indonesian economy and facilitating trade between Indonesia and Canada, following the signing of this Understanding, to enter into negotiations for the purpose of concluding agreements to establish i n Canada credit facilities aggregating Two Hundred Million Dollars ($200,000,000) Canadian to assist Indonesia to purchase Canadian goods and services on the following basis:
1. The facilities would be made available to Indonesia to the extent of Twenty-Five Mi llion Dollars ($25,000,000) by the Canadian International Development Agency
(hereinafter referred to as "CIDA") in addition to present CIDA program allocations, and to the extent of One Hundred and Seventy-Five Million Dollars ($175,000,000) by the Export Development Corporation (hereinafter
referred to as "EDC") and Canadian financial institutions. 2. The funds which would be made available by CIDA
(herein-after referred to as the "CIDA facility") would be
advanced in accordance with a development loan agreement to be entered into between the Government of the
Republic of Indonesia represented by the Ministry of
Foreign Affa irs and the Government of Canada and the funds which would be made available by EDC and Canadian
3. Projects to be financed from these facilities would be subject to agreements between the respective parties. Canadian suppliers would be given priority for the pro-curement of goods and services for such projects.
4. The CIDA facility would be utilized for the acquisition of Canadian goods and services and the EDC facility would be utilized for the purchase of Canadian capital goods, services and local costs.
5. The CIDA facility and the EDC facility would be committed on a pro rata basis and the parties would co-operate to the fullest extent to achieve utilization of the facilities on such a basis.
DONE in duplicate at Ottawa on the third day of July, nineteen hundred and seventy-five.
Signed
For the Government of the Republic of Indonesia
Signed
