Selanjutnya

JAP.1m TO THE REPUBLIC OF l DONFSI , P/R'.:'I AI1IY A1 ｉｬｾｓＧｔＧ＠ RA: ｃｏｔｾ＠ ON TO Bl<' Di:':LIV":'RFD lT TL ':.'I--'E

mrrr"''!)

3': S • }RICUI/1." JAL ':'R J)E

DEVE;LOP!'.ENT AND 4. IST J'CE Cr:' PRO';.Rli' 'E .

The Governw.ent of the Rrpublic of Indonesia and the Government of Japan ,

desiring to make arrangements for the exportati on of cotton ya.l'ns amountine

to approximately U .. S

.,316,Li.61 , 000

froI!l Japan to

the

Republic of Indonesia , and

for the acceptance in Ja:::-ian of rm, cotton of the value of

-u.s .,310, 700, 000

in

partial payment (65 per cent) for the cotton yarns so exported (the bo.lMcc ,

35

per cent to be paid in U

.s .

dollars) have conc:!.udcd. o.n arro.nclement as set forth below.

This Arrange .ent was made in the lmowledge that the ;ovornnwnt of the

Un:ted States of /.merica has agreed to issue to the ｾｯｶ･ｲｭＺＺ･ｮｴ＠ of the Republic

of Indor.esia a ｰｵｲ｣ｬｾｳ･＠ author.i.zntion (hereina.:f'ter called the

PA)

for raw

cotton pursuant to ':'itle

I ,

United States Agricultt>ral

Trade

Develo ment and

Assistance Act , as amended (lereinafter refeITed to as the Act) , and bas

agr eed that the Government of the Republic of Indonesic may transfer , as needed,

to the Ｚ［Ｎｯｶｾｲｮｭ･ｮｴ＠ of

Jap,n the

authority to i::.sue sub-authorizations under

the Pl .•

I .

The Gover nment of Japan

A.

will fqcilitate the exportation to

the

Republic of Indonesia of cotton y rns manufactured in

Jnpan

at competitive prices and accor d.i.ng to

agr eed qualities;

B. v.ri.11

aITange f or t he acceptance of r aw cotton

made

available to ｾ ｨ･＠

Government of the Republi c of Indone sia by the United States of

J)me1:ica W1der the Act in partial payment f or the

F.o.-B.

va l ue of t he

cot ton ｹ ｡ｲｮｾ＠ exported to impor'ters jn tile Re:public of Indonesia under

this Ar•.' aneeme11 t ;

c.

'7ill arra.nee for the contractine for the raw cotton under the PA rri.or

to

November

30, 1963, o.nd

will

arran8e

for the sh.i.pme.nt prior

to

December 31 ,

1963,

with the unde ·st ndine tna"; these term-· nal contract:.ng

and shipplne d.:> f es :n'ly be extended by agreement bE'tl1een the ';ovPrnment of the Republ·i c of TndonE'sia and the t;overll' E. nt of *'he Fni tod States

of /imeri.ca.;

D. will al.Tc ｲｾ･＠ ｴﾷＱｾｴ＠ the ra\, cotton m1der the Pl> sha.1:' .. be i"lported undPr

the c. plicnble ro..,ulations of the United St tes Departi.ent of'

/\f!:rlcul tuPe , and agl'ecs th·tt tiie raw cotton shall not be imported into

J'l.'lan unless rG&. ect · V"' Let• ers of Cree..-· t for cot' 011 yt>.rns have be n

11

2

-imported under the PA Ytlll be

65

per cent of the F.O.B. value of the

cotton yarns for which the Letters of Credit are opened ;

E. will inform the Goverument of the Republic of Indonesia from time to

time of the net values of shipaents of cotton yarns , of Letters of

Credit opened for raw cotton, and of the net values of ravr cotton

actually shipped to Japan;

F. recosnizes that the raw cotton imported from the United States of

A.lfierica to Japan under this Arr:ineement will be additional to ra1:

cotton that would othe:Mt-.i.se be imported from the United States of

.llJnerica and countr.i.es friendly to the United States of America;

G. accepts that claims in respect of deficiency in quality and/or quantity

of cotton yarns shall be settled by nesotiat.i.ons between exporters in

Japan and importers in the ReIJubl:i c of Indonesia in accordance with

normal commercial practice, and thnt ｡Ｎｾｹ＠ deficiency in quality nnd/or quanti:tY will be made eood by additionel supplies of cotton yerns, or, '

failing that, by renittancc in U.S. dollars in favour of :i.mportel'S in

the ｾｰｵ｢ｬｩ｣＠ of Indonesia;

H.

(1)

if, after one month from the date of transfer of the authority to

issue sub-authorizations under the PA for re.YT cotton, conunercial

contracts for the supply of cotton yarns have not been concluded

!

between exporters in Japan and importers in the Republic of Indonesia

to a minimum of 1:

.s

.,34.,

115 ,OOO, accepts that the G-overnment of the "

Republic of Indonesia may, after inf'ormine tLe Goverrunent of .Tapan,

be released fron its undertaking under pru:·'l.::;raph II.B. belo\7 in respect

of the balance of the ｾｯｴ｡ｬ＠ specified in that paragraph;

(2) in the event the"'.: the Government of the ｾ･ｰｵ｢ｬｩ｣＠ of Indonesia is

prepared to suspend its right under the precedine sub-para.graph tor

an additional period of one month, accepts that the Government of' the

Republic of Indonesia oo.y specify a further minimum-value of contracts

which shall be concluded i'ithin the additional one month.

II. The Govez·nment of the Republic of Indonesia

A. \rill transfer to the Governmeut of Japan the authority to issue

sub-authorizations under the PA for ra\'7 cotton equivalent to the value of

ｵＮｳＮｾＱＰＬＷＰＰＬＰＰＰ＠ as soon as possible after the Government of the

Republic of Indonesia has received the PA;

B. will arrange for the import tion of cotton yarns f:r·on Japan and vrill

issue licences and/or make ｾｬｬｯ｣｡ｴｩｯｮｳ＠ to importers ｾｮ＠ the Republic of

Indonesia as soon as possible after the comi.ne into eff oct of this

.Ar.cant,;ement, provided that

65

per cent of the total F.O.B. value of the

:

exrorted cotton yr rns shPll be in ihe ae...,Te..;ate ･ｦＡｵﾷｶｾｬ･ｮｴ＠ to U.S.

ｾＱ＠ O, 700,000 wo1·th of rew cotton.

Such licences shall be V£.lid only fo1· Japan and shall be

distine;uished fl:·om ordir.ary itlport authoriza.t:i ons ly the notv. tion:

"For PL 4£C '.:'r·,11so.ctiors only". The i.rr.port licences ana/or allocations

slwll be vcliC: until Octolcr 31, 196.?, but th.;_s dete may be extended

ruri passu w:i:O. the tf.rn.:!rsl dDtes for the contra.ctine; for, and shipment

of, ra.Vl cotton f 1-on1 the Fni ted 3tates of /lf.l('rica mm tioned in :iaraer·e.:pl.t

I.C. above;

I

c.

ID.J.l arrr.nt;e t!-o.t iL,::ortfrs in the P.E.."1bli.c of Trc1on<>sic. of cotton Y',rns , complete thr :i r purch.-,se contracts 'l7i th ex;iorters i.r. Ja.pen as c:q ..

edi-tiously a.s possibJ e, and ,·rill arTanee that such :iurchase contr,,.cts call for a ｳｬｲｩＮｰｾ･ｮｴ＠ date as early as possib:e and ｮｵｴｵｾｬｬｹ＠ convEnirnt;

ｾ Ｎ＠ will soli:>1y be rns::;>onsible for tho deposit to the account of the

3-0vernrent of f-Jle Uri tea ｓｴｾｴ･ｳ＠ of .Ame1·ice. of the Rt:piah equivalent of

TT

.s.

clollar cL.5 bursoment as rE r:u i..red under the N:;ricul tural CoIJI:odi ties

Ｎａｧｲ･･ｾ･ｾｴ＠ op 19fi2, as amended, ｢ｾｴＱ＠ een the Governments of the Republic

of Indonesia end of the Cnited Stctes of America ｾｮ､＠ under the PA;

E. will recornr:lcnd to the ';.over1L'Tlent of the United States of Amel:'ica a reesoPable ex'l:Pnsfon of the PA in the event that the fulf .:lment of' the

arrengement as mi:;ntioned in raragraph I

.c.

above is pre ... ·ented by 'lny

occurrence such as n"tural c.s,tastrorhes, firo , explosions, strike,

lock-out , r1:tr, riot, civil com: otion as wel:' as other evei-1,s v;h.i ch Ｂｾ＠ 11

ｾ･ｮ･ｲ｡ｬｬｹ＠ be deE'mcd as ｣｡ｾｲｮｳ＠ of' ''force m;: je•.1re" ovC'r Hhic1 the Gove=rnment of ,Teran has no control;

F.

recocnizcs th.-t the cotton yr.rns imported from Jrp::n to the Republic of

Inc.:<.ne:;ia undE:r th.is Ar··anec:i€:;nt vr.i.11 be aC::., ... i tional to the cotton J .. , rns

thnt would otherl'Tise be imported from the United States of America and

cow1t'l"ies friendly to the l'n.i ted States of Arner-lea .

III. ｾ･ｮ･ｲ｡ｬ＠ Provisions:

A.

Any residual cmow1t of the sub-authorizations issued undPr the

PA

in

tl.e neighbourhood of

u.s.,31,000

for which the 'Tnited States of /incrica

cannot reasonably be e:>.7ectea to make shipment , sh."l11 be settled,

ｷｾ＠ thout delay, by the Governr1cnt of the Renublic of Indoncs"io. to the

desienated !'ort.ien excharGe bC!llk of Japan in cash .

B. Commercial contr i.cts for the delivery of tho cotton yarns shrll be

mede on tErms and conditions to be ｮ･ｾｯｴｾ｡ｴｅＺ､＠ ｢･ｴｩｾ･ｮ＠ exporters in

Jc.pPn and ir1rortcrs in tl:e Rerubl:c o'f: Indonesia.

C. The annexed Procr-dure sb:.11 be rt.gfll'ded as a ｰｾｲｩＬ＠ o:' tMs Arrane;ement.

D. '"h..: s Arraneement shtl: come into force on the date of sii::nnture.

4

-I n 1litness v.11ereof, the undersigned , being duly authorized , have signed the present .Arr angenent .

Done in duplica t e , in tho Engl i sh l angua!).e, at ｄｪｮｬＺｾｴｯＮ Ｌ＠ this

t·rrenty-third. day of September,

1963.

For the Govern: ent of the

Republic of Indonesia :

Signed

-cI.Jill.J ADI ,

Deputy f'or Econoraic Relations

to the lunister for Foreign Affairs .

Fo::.· the 3-0vernment of

J::i.pan :

Signed

Dll IIIReC i''liRiJUCHI ,

Ambassador Extraordinary

1 . The Government of' the Republic of Indonesia vrill issue :import licences

and/or make allocations to its :iJnpoi·ters for the

J!' . O.B.

value of the cotton

yarns .

2 . Impoi·ters in the Republic of Indonesia Yiill place orders for the cotton

yarns ID.th exporters in Japan and open U.S. dollar irrevocable Letters of

Credit in favour of exporters in Japan to cover the ptu·chases . All contract

prices shall

oe

e:;.rpres::;ed in U.S. dollars . The Letters of Credit i·1ill be opened immediately after conclus:l.on of the relevant contract and advised

through the desisnated foreien e;=chant,;e bank of Japan .

3.

Exporters in Je.pan nill ship the cotton yarns and draw drefts ｡ｾ｡ｩｮｳｴ＠ the Letters of Credit . The ､ｲｾｴｳ＠ shnll be dravm separately (a) for

mr:nufactu-ring cha.rc;es expressed in 'G .S. aollars representing the sum of 35 per cent of

the contract prices for e:;...rported cotton yams , and (b) for i·aw cotton in

partial ps,yment for exported cotton yarns ex.pressed in U .8. dollars repre-sentine the sill!l of

6.5

per cent of the contract prices for exported cotton

yerns .

4 . The desi.'."Ildeo. fo1·eign exchange bank of' Japan will pay the draf'ts drawn by

the expo rte :r·s •

5 .

The designated foreisn exchange bf'.nk of Japan vr.i..11 forwa1·d the docUI:lents required under the Letters of' Creeit concerned to the designated foreign

exchange bmk of the .1.lepublic of Indonesia .

6.

The designated f'o1·ei5n exchange bank of the Republic of' Indonesj_a will make reinburse.'Ilent to the designated foreif;n exchange bank of' ｊ｡Ｎｰｾｮ＠ in U

.s.

dollars for the sum of drafts for manuf\.,cturing charges, the amow1t of which

corresponds to that as stipulated in parecraph A.3 . (a) of this Procedure ,

and credit the sum of drafts f'or raw cotton in parti?l pa.ymen.t f'o?: exported

cotton yarns, the amount of Tihich corresponds to that as stipulated in

paragraph A. ).(b) of this Procea.ure , to 'me U. S. dollar Escrow Account in

the nvme of the designated foreign exch::nt;e bank of ｊ｡ｾ｡ｮ Ｎ＠

7.

The amounts in the U.S. dollar Escrow Account will be debited only in accordance Tiith the provisions of po.i·agraph B. 8 . (i) below .

B. For the United Stat es ran cotton ｴｨ｡ｾＮＲｾＱＱ＠

_Ee

ｾＰＱ ﾷ ｴｾＵＡＮＮＲｬ＠ ,Ta.E:!l •

1. The United States Department of' Agriculture ( Cornmodi ty Credit Corpor·ation) rill issue Letters of CommitEent to the United States bank nominated by the

designated foreign exchringe bank of tr..e Republic of Indonesia in respect of

the U.S . dollar Letters of Credit to be opened under the PA by the

desig-nated foreign exch::nge bank of .;apan .

....

2

-the United States of fll!lerica.

3.

The designated foreign exchmge bank of Japan will open U.S. dollar Letters

of Credit in favour of the raw cotton exporters and advise them through the

United States bank holding Letters of Commitment Vihich have ｢･ｾｮ＠ issued. 4. Exporters in the United States of .America will ship the raw cotton and draw

drafts against the U.S. dollar Letters of Credit.

5.

The United States bank will negotiate the drafts and pay exporters in the United States of .America in U

.s.

dollars and will forvrard shipping documents

to the designated foreign exchange bal'lk of Japan.

6.

The United States Department of Agriculture (Commodity Credit Corporation) will make reimbursement for 95 per cent or less of the invoice value of each shipment financed by the United. States bank, while the remaining

5

per cent or more will be for the account of the importers in Jap::!.Il. In the agregate Collllilodity Credit Corporation will finance up to the full dollar amount

authorized in the PA. Any claims resulting from the shipments vd.11 be settled directly between the importers in Japan and the exporters in the United

States of .. unerica.

7.

The United States bank will notify the designated foreign exchange bank of the Republic of Indonesia and request it to deposit an amount of Rupiah equivo.lent to the U

.s.

dollar amount reimbursed by Commodity Credit

Corporation to the Special United vtates Government Account, and. the designated foreign exchange bank of Japan Yd.11 confirm ti.e amount to be debited to its

U.S.

dollar Escrow Account as provided in paragraph B.8.(i) beloVT.

8. The designated f orei8n excha.nee bank of the Republic of Indonesia vd.11

(i) debit the U.S. dollar Escrow Account in the name of the designated foreign exchange bank of Japen wi. th the amounts of the U

.s.

dollar dra.fts₁

(ii) ｣ｲｾ､ｩ＠ t the Special United States Government Account vd. th appropriate

amounts of Rupiahs.

---Excellency,

I ho.ve the h nour -!.o refer to the ne ｯｴｩ｡ｴｾ＠ ons bet\·een the representati v es

of the Goverrunent of J ::an and of the GovenL"lent of the RPpubl ic of :ndonesia

leadinz up to the sigrr'ng today of the Arrangement bet een the G-ovcrnment of

Japan and the Government of the Repub ic of Indonesia fo1· the Supply of Cotton

Yt ms f' om Japan to the Republtc of Indonesia , p."rtio."'ly against Raw Cotton to

be clel i.vered under the 'United

St·

tes At;ricul tural 'l'ro.de Dcvelopi ent and

Assistance Act Progr"' :me , and to confirm, on beho.l"' of the Govern:'lent of J pan, tne followin.., unders ti ndin...;s reached durln the course of the negoti<>tions .

I . The ｾｯｶ･ ｲ ｮｭ･ｮｴ＠ of the Republic of Indonesia \7i ll make no object· on to the formation of tr de bodies by the exporters in Japan in connection

vr.i. tl1 the exportation of cotton y .rns tmder the Arran0 ement r.iEntloned above .

II . The desienated orei n exchan e bank of Japan and the desi0natcd

fore · gn exchan...,e bank of the Republic of Indonesia centioned in the said

Ar ·aneement and the Procedure annexed thereto are tie Bank of ｾｯｫｹｯ Ｌ＠ Osaka

and the Bank Indonesia , Dja.1_{mrta, re::;pectively .}

I shall be grateful for your coni'irma ti on of the ･Ｎ｢ｯｶｅ Ｍ ｾ･ｮｴｩｯｮ･､＠

understand.inss on behalf of the ｇｯｶ･ｲｮＮｾ･ｮｴ＠ of the Republic of Indonesia .

I avail myself o. this opportunity to renew to 'our Excellency the

assurance of my hiehest

consideration.-Signed

.-- DR. HIROO FUR mcHI '

His ｅｾｻｃｯｬｬ･ｮ｣ｹ＠ lr.:AR.JADI ,

Deputy for Economic .tte:ations

to the Minister for Foreign .Affairs .

.AI!lbnssador Extraordinary and