(Japanese Note)

　Dakar, July 18, 1989

　Excellency,

　I have the honour to refer to the recent discussions held between the representatives of the Government of Japan and of the Government of the Republic of the Gambia concerning Japanese economic cooperation to be extended with a view to strengthening friendly and cooperative relations between the two countries, and to propose on behalf of the Government of Japan the following arrangements:

1. For the purpose of contributing to the execution of the project for rehabilitation of Kotu Power Station (hereinafter referred to as "the Project") by the Government of the Republic of the Gambia, the Government of Japan will extend to the Government of the Republic of the Gambia, in accordance with the relevant laws and regulations of Japan, a grant up to two hundred sixty million yen (260,000,000) (hereinafter referred to as "the Grant").

2. The Grant will be made available during the period between the date of coming into force of the present arrangements and March 31, 1990, unless the period is extended by mutual agreement between the authorities concerned of the two Governments.

3. The Grant will be used by the Government of the Republic of the Gambia properly and exclusively for the purchase of the products of Japan or the Gambia and the services of Japanese or Gambian national listed below: (The term nationals whenever used in the present arrangements means Japanese physical persons or Japanese juridical persons controlled by Japanese physical persons in the case of Japanese nationals, and Gambian physical or juridical persons in the case of Gambian nationals.)

(a) equipment and services necessary for the rehabilitation of the diesel engine generator set at Kotu Power Station (hereinafter referred to as "the Facilities"); and

(b) services necessary for the transportation of the products referred to in (a) above to ports in the Republic of the Gambia, and those for internal transportation therein.

4. The Government of the Republic of the Gambia or its designated authority will enter into contracts in Japanese yen with Japanese nationals for the purchase of the products and services referred to in paragraph 3. Such contracts shall be verified by the Government of Japan to be eligible for the Grant.

5.(1) The Government of Japan will execute the Grant by making payments in Japanese yen to cover the obligations incurred by the Government of the Republic of the Gambia or its designated authority under the contracts verified in accordance with the provision of paragraph 4 (hereinafter referred to as "the Verified Contracts") to an account to be opened in the name of the Government of the Republic of the Gambia in an authorized foreign exchange bank of Japan designated by the Government of the Republic of the Gambia or its designated authority (hereinafter referred to as "the Bank").

(2) The payments referred in sub-paragraph (1) above will be made when payment requests are presented by the Bank to the Government of Japan under an authorization to pay issued by the Government of the Republic of the Gambia or its designated authority.

(3) The sole purpose of the account referred to in sub-paragraph (1) above is to receive the payments in Japanese yen by the Government of Japan and to pay to the Japanese nationals who are parties to the Verified Contracts. The procedural details concerning the credit to and debit from the account will be agreed upon through consultation between the Bank and the Government of the Republic of the Gambia or its designated authority.

6.(1) The Government of the Republic of the Gambia will take necessary measures:

(a) to secure a lot of land necessary for the rehabilitation of Kotu Power Station and to clear the site;

(b) to provide facilities for distribution of electricity, water supply and drainage and other incidental facilities outside the site;

(c) to ensure promt unloading and customs clearance at ports of disembarkation in the Republic of the Gambia and internal transportation therein of the products purchased under the Grant;

(d) to exempt Japanese nationals from customs duties, internal taxes and other fiscal levies which may be imposed in the Republic of the Gambia with respect to the supply of the products and services under the Verified Contracts;

(e) to accord Japanese nationals whose services may be required in connection with the supply of the products and services under the Verified Contracts such facilities as may be necessary for their entry into the Republic of the Gambia and stay therein for the performance of their work;

(f) to ensure that the Facilities rehabilitated and the products purchased under the Grant be maintained and used properly and effectively for the execution of the Project; and

(g) to bear all the expenses, other than those covered by the Grant, necessary for the execution of the Project.

(2) With regard to the shipping and marine insurance of products purchased under the Grant, the Government of the Republic of the Gambia will refrain from imposing any restrictions that may hinder fair and free competition among the shipping and marine insurance companies.

(3) The products purchased under the Grant shall not be re-exported from the Republic of the Gambia.

7. The two Governments will consult with each other in respect of any matter that may arise from or in connection with the present arrangements.

　I have further the honour to propose that this Note and Your Excellency's Note in reply confirming on behalf of the Government of the Republic of the Gambia the foregoing arrangements shall be regarded as constituting an agreement between the two Governments, which will enter into force on the date of Your Excellency's reply.

　I avail myself of this opportunity to extend to Your Excellency the assurance of my highest consideration.

　(Signed)Sadamu Fujiwara
Charge d'Affaires a.i. of Japan to The Gambia

　His Excellency
Alhaji Abdoulie Suleyman M'Boob 

　High Commissioner of the Republic of The Gambia

(Gambian Note)

　Dakar, July 18, 1989

　Sir,

　I have the honour to acknowledge the receipt of your Note of today's date, which reads as follows:

"(Japanese Note)"

　I have further the honour to confirm on behalf of the Government of the Republic of the Gambia the foregoing arrangements and to agree that your Note and this Note shall be regarded as constituting an agreement between the two Governments, which will enter into force on the date of this reply.

　I avail myself of this opportunity to extend to you the assurance of my high consideration.

　(Signed)Alhaji Abdoulie Suleyman M'Boob
High Commissioner of the Republic of The Gambia

　Mr.Sadamu Fujiwara
Charge d'Affaires a.i. of Japan to The Gambia