(Japanese Note)

　Kathmandu, June 29, 1993

　Dear Dr. Pant,

　With reference to the Exchange of Notes dated May 26, 1992 concerning Japanese economic cooperation to be extended with aview to strengthening friendly and cooperative relations between Japan and the Kingdom of Nepal, I have the honour to refer to the recent discussions held between the representatives of the Government of Japan and of His Majesty's Government of Nepal, and to propose on behalf of the Government of Japan, in accordance with paragraph 2 of the above-mentioned Exchange of Notes, the following arrangements:

　For the purpose of contributing to the execution of the project for reconstruction of bridges (phase II) in Kathmandu by His Majesty's Government of Nepal, the Government of Japan will extend to His Majesty's Government of Nepal a grant up to four hundred and thirty-three million yen (433,000,000) during the period between the date of coming into force of the present arrangements and March 31, 1994, unless the period is extended by mutual agreement between the authorities concerned of the two Government

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

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

　(Signed) Chuichi Ito
Ambassador Extraordinary and Plenipotentiary of Japan to the Kingdom of Nepal

　Dr. Thakur Nath Pant
Secretary Ministry of Finance of the Kingdom of Nepal

(Nepalese Note)

　Kathmandu, June 29, 1993

　Excellency,

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

"(Japanese Note)"

　I have further the honour to confirm on behalf of His Majesty's Government of Nepal the foregoing arrangements and to agree that Your Excellency's 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 renew to Your Excellency the assurance of my highest consideration.

　(Signed) Thakur Nath Pant
Secretary Ministry of Finance of the Kingdom of Nepal

　His Excellency
Mr. Chuichi Ito
Ambassador Extraordinary and Plenipotentiary of Japan to the Kingdom of Nepal