(Japanese Note)

Dar es Salaam, February 19, 2001

Excellency,

	I have the honour to refer to the recent negotiations between the representatives of the Government of Japan and of the Government of the United Republic of Tanzania that were held on the basis of the conclusions reached during the consultations between the representatives of the Government of the United Republic of Tanzania and of the Governments of the creditor countries concerned held in Paris on January 21, 1997.  I have further the honour to confirm the following understanding reached in the course of the said negotiations:

1.	A debt relief measure in the form of rescheduling will be taken in accordance with the relevant laws and regulations of Japan by Japan Bank for International Cooperation (hereinafter referred to as "the Bank").

2.	The debts to be rescheduled consist of the debts referred to in sub-paragraph (1) below (hereinafter referred to as "the Rescheduled Debts I") and the debts referred to in sub-paragraph (2) below (hereinafter referred to as "the Rescheduled Debts II") which the Government of the United Republic of Tanzania owes to the Bank:

(1)	(a)	For the debts previously rescheduled pursuant to the arrangements made by the Notes exchanged between the Government of Japan and the Government of the United Republic of Tanzania on April 6, 1988 concerning the debt relief measures with respect to the debts the Government of the United Republic of Tanzania owed to the Overseas Economic Cooperation Fund (hereinafter referred to as "the Fund"),

(i) the principal and interest having fallen due on or before November 30, 1996, and not paid, and the late interest on such principal and interest having accrued on or before November 30, 1996, the breakdown of which is shown in the List 1 attached hereto; and

(ii) the principal and interest having fallen due between December 1, 1996 and December 31, 1997, both dates inclusive, and not paid, the breakdown of which is shown in the List 2 attached hereto.

(b)	For the debts previously rescheduled pursuant to the arrangements made by the Notes exchanged between the Government of Japan and the Government of the United Republic of Tanzania on June 5, 1990 concerning the debt relief measures with respect to the debts the Government of the United Republic of Tanzania owed to the Fund,

(i) the interest having fallen due on or before November 30, 1996, and not paid, and the late interest on such interest having accrued on or before November 30, 1996, the breakdown of which is shown in the List 3 attached hereto;

(ii) the interest having fallen due between December 1, 1996 and December 31, 1997, both dates inclusive, and not paid, the breakdown of which is shown in the List 4 attached hereto;

(iii) the interest having fallen due between January 1, 1998 and December 31, 1998, both dates inclusive, and not paid, the breakdown of which is shown in the List 5 attached hereto; and

(iv) the interest having fallen due between January 1, 1999 and November 30, 1999, both dates inclusive, and not paid, the breakdown of which is shown in the List 6 attached hereto.

(c)	For the debts previously rescheduled pursuant to the arrangements made by the Notes exchanged between the Government of Japan and the Government of the United Republic of Tanzania on September 11, 1992 concerning the debt relief measures with respect to the debts the Government of the United Republic of Tanzania owed to the Fund, excluding the debts referred to in (b) of sub-paragraph (1) of paragraph 2 of the said Notes,

(i) the interest having fallen due between December 1, 1996 and December 31, 1997, both dates inclusive, and not paid, the breakdown of which is shown in the List 7 attached hereto;

(ii) the interest having fallen due between January 1, 1998 and December 31, 1998, both dates inclusive, and not paid, the breakdown of which is shown in the List 8 attached hereto; and

(iii) the interest having fallen due between January 1, 1999 and November 30, 1999, both dates inclusive, and not paid, the breakdown of which is shown in the List 9 attached hereto.

(d)	For the debts previously rescheduled pursuant to the arrangements made by the Notes exchanged between the Government of Japan and the Government of the United Republic of Tanzania on December 14, 1993 concerning the debt relief measures with respect to the debts the Government of the United Republic of Tanzania owed to the Fund, excluding the debts referred to in (b) of sub-paragraph (1) of paragraph 2 of the said Notes, the interest having fallen due between December 1, 1996 and June 30, 1997, both dates inclusive, and not paid, the breakdown of which is shown in the List 10 attached hereto.

(2)	(a)	For the debts previously rescheduled pursuant to the arrangements made by the Notes exchanged between the Government of Japan and the Government of the United Republic of Tanzania on April 6, 1988 concerning the debt relief measures with respect to the debts the Government of the United Republic of Tanzania owed to the Export-Import Bank of Japan (hereinafter referred to as "the JEXIM"),

(i) the principal and interest having fallen due on or before November 30, 1996, and not paid, and the late interest on such principal and interest having accrued on or before November 30, 1996, the breakdown of which is shown in the List 11 attached hereto; and

(ii) the principal and interest having fallen due between December 1, 1996 and December 31, 1997, both dates inclusive, and not paid, the breakdown of which is shown in the List 12 attached hereto.

(b)	For the debts previously rescheduled pursuant to the arrangements made by the Notes exchanged between the Government of Japan and the Government of the United Republic of Tanzania on September 11, 1992 concerning the debt relief measures with respect to the debts the Government of the United Republic of Tanzania owed to the JEXIM,

(i) the interest having fallen due on or before November 30, 1996, and not paid, and the late interest on such interest having accrued on or before November 30, 1996, the breakdown of which is shown in the List 13 attached hereto;

(ii) the interest having fallen due between December 1, 1996 and December 31, 1997, both dates inclusive, and not paid, the breakdown of which is shown in the List 14 attached hereto;

(iii) the interest having fallen due between January 1, 1993 and December 31, 1998, both dates inclusive, and not paid, the breakdown of which is shown in the List 15 attached hereto; and

(iv) the interest having fallen due between January 1, 1999 and November 30, 1999, both dates inclusive, and not paid, the breakdown of which is shown in the List 16 attached hereto.

(c)	For the debts previously rescheduled pursuant to the arrangements made by the Notes exchanged between the Government of Japan and the Government of the United Republic of Tanzania on December 14, 1993 concerning the debt relief measures with respect to the debts the Government of the United Republic of Tanzania owed to the JEXIM,

(i) the interest having fallen due on or before November 30, 1996, and not paid, and the late interest on such interest having accrued on or before November 30, 1996, the breakdown of which is shown in the List 17 attached hereto; and

(ii) the interest having fallen due between December 1, 1996 and June 30, 1997, both dates inclusive, and not paid, the breakdown of which is shown in the List 18 attached hereto.

(3)	(a)	The total amount of the Rescheduled Debts I will be one billion five hundred twenty-seven million nine hundred twenty-five thousand six hundred and thirty-eight yen (1,527,925,638).

(b)	The total amount of the Rescheduled Debts II will be one billion six hundred four million six hundred fifteen thousand four hundred and fifty-nine yen (1,604,6l5,459)

	(4)	Modifications may be made to the total amount referred to in sub-paragraph (3) above and to the Lists 1 to 18 attached hereto by agreement between the authorities concerned of the Government of Japan and of the Government of the United Republic of Tanzania, after the final verification to be made by the authorities concerned of the Government of the United Republic of Tanzania and the Bank.

3.	The terms and conditions of the rescheduling will be stipulated in rescheduling agreements to be concluded between the Government of the United Republic of Tanzania and the Bank, which will contain, inter alia, the following principles:

(1)	(a)	Each of the debts referred to in (a), (b) and (c) of sub-paragraph (1) of paragraph 2, and (a) and (b) of sub-paragraph (2) of paragraph 2 will be paid in forty-eight (48) semi-annual installments beginning on December 1, 2014, in accordance with the payment schedule shown in the Annex I attached hereto.

(b)	Each of the debts referred to in (d) of sub-paragraph (1) of paragraph 2, and (c) of sub-paragraph (2) of paragraph 2 will be paid in six (6) semi-annual installments beginning on December 1, 2001, in accordance with the payment schedule shown in the Annex II attached hereto.

	(2)	(a)	(i)	The rate of interest on the Rescheduled Debts I will be one point zero per cent (1.0%) per annum.

(ii) The rate of interest on the Rescheduled Debts II will be six point three per cent (6.3%) per annum.

(b)	The rate of interest referred to in (a) above will be applied from December 1, 1996 for the debts referred to in (a)(i) and (b)(i) of sub-paragraph (1) of paragraph 2, and (a)(i), (b)(i) and (c)(i) of sub-paragraph (2) of paragraph 2, and from each due date mentioned in the Lists 2, 4, 5, 6, 7, 8, 9, 10, 12, 14, 15, 16 and 18 attached hereto for the debts referred to in (a)(ii), (b)(ii), (b)(iii), (b)(iv), (c)(i), (c)(ii), (c)(iii) and (d) of sub-paragraph (1) of paragraph 2, and (a)(ii), (b)(ii), (b)(iii), (b)(iv) and (c)(ii) of sub-paragraph (2) of paragraph 2.

4.	If the representative of the Government of the United Republic of Tanzania and the representatives of the Governments of the creditor countries concerned come to a new conclusion in connection with reorganization of the Tanzanian debts including the debts covered by the present arrangements, consultations will be held between the Government of Japan and the Government of the United Republic of Tanzania, in order to discuss the matter of continuation or modification of the present arrangements.

	I should be grateful if Your Excellency would confirm the foregoing understanding on behalf of the Government of the United Republic of Tanzania.

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

(Signed)	Keitaro Sato
Ambassador Extraordinary
and Plenipotentiary of Japan
to the United Republic
of Tanzania

His Excellency
Mr. Basil P. Mramba
Minister for Finance
of the United Republic
of Tanzania

ANNEX I

	0.53%	on	December 1,	2014

	0.56%	on	June 1, 	2015

	0.59%	on	December 1, 	2015

	0.62%	on	June 1, 	2016

	0.65%	on	December 1, 	2016

	0.68%	on	June 1, 	2017

	0.71%	on	December 1, 	2017

	0.75%	on	June 1, 	2018

	0.79%	on	December 1, 	2018

	0.83%	on	June 1,　　	2019

	0.87%	on	December 1, 	2019

	0.91%	on	June 1,	　　　　2020

	0.96%	on	December 1, 	2020

	1.00%	on	June 1, 	2021

	1.05%	on	December 1, 	2021

	1.11%	on	June 1, 	2022

	1.16%	on	December 1, 	2022

	1.22%	on	June 1,	　　　　2023

	1.28%	on	December 1,	2023

	1.34%	on	June 1, 	2024

	1.41%	on	December 1, 	2024

	1.48%	on	June 1, 	2025

	1.56%	on	December 1, 	2025

	1.63%	on	June 1, 	2026

	1.72%	on	December 1, 	2026

	1.80%	on	June 1, 	2027

	1.89%	on	December 1, 	2027

	1.99%	on	June 1, 	2028

	2.08%	on	December 1, 	2028

	2.19%	on	June 1, 	2029

	2.30%	on	December 1, 	2029

	2.41%	on	June 1, 	2030

	2.53%	on	December 1, 	2030

	2.66%	on	June 1,　	2031

	2.79%	on	December 1, 	2031

	2.93%	on	June 1,	　　　　2032

	3.08%	on	December 1, 	2032

	3.23%	on	June 1,	　　　　2033

	3.40%	on	December 1, 	2033

	3.57%	on	June 1, 	2034

	3.74%	on	December 1, 	2034

	3.93%	on	June 1, 	2035

	4.13%	on	December 1, 	2035

	4.33%	on	June 1, 	2036

	4.55%	on	December 1, 	2036

	4.78%	on	June 1, 	2037

	5.02%	on	December 1, 	2037

	5.26%	on	June 1,	　　　　2038

ANNEX II

	16.0%	on	December 1,	2001

	16.0%	on	June 1, 	2002

	16.0%	on	December 1, 	2002

	16.0%	on	June 1, 	2003

	16.0%	on	December 1, 	2003

	20.0%	on	June 1,　	2004

(Tanzanian Note)

Dar es Salaam, February 19, 2001

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 the Government of the United Republic of Tanzania the understanding set forth in Your Excellency's Note.

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

(Signed)	Basil P. Mramba
Minister for Finance
of the United Republic
of Tanzania

His Excellency
Mr. Keitaro Sato
Ambassador Extraordinary
and Plenipotentiary of Japan
to the United Republic
of Tanzania

(Japanese Note)

Dar es Salaam, February 19, 2001

Excellency,

	I have the honour to refer to the recent negotiations between the representatives of the Government of Japan and of the Government of the United Republic of Tanzania that were held on the basis of the conclusions reached during the consultations between the representatives of the Government of the United Republic of Tanzania and of the Governments of the creditor countries concerned held in Paris on January 21, 1997.  I have further the honour to confirm the following understanding reached in the course of the said negotiations:

1.	(1)	The present arrangements will apply to the total amount of the following principal of and rescheduling interest on the commercial debts insured by the Government of Japan, which are contracted before June 30, 1986 between the debtors concerned resident in the United Republic of Tanzania on the one hand and the creditors concerned resident in Japan (hereinafter referred to as "the Creditors") on the other (hereinafter referred to as "the Rescheduled Commercial Debts"):

(a)	With respect to the commercial debts previously rescheduled in accordance with the arrangements made by the Notes exchanged between the Government of Japan and the Government of the United Republic of Tanzania on April 6, 1988 concerning the debt relief measures in respect of Tanzanian commercial debts (hereinafter referred to as "the Previous Notes I"),

(i) the principal and rescheduling interest having fallen due on or before November 30, 1996 and not paid;

(ii) the late interest on the debts referred to in (i) above, having accrued on or before November 30, 1996 and not paid; and

(iii) the principal and rescheduling interest having fallen due between December 1, 1996 and December 31, 1997, both dates inclusive, and not paid.

(b)	With respect to the commercial debts previously rescheduled in accordance with the arrangements made by the Notes exchanged between the Government of Japan and the Government of the United Republic of Tanzania on June 5, 1990 concerning the debt relief measures in respect of Tanzanian commercial debts (hereinafter referred to as "the Previous Notes II"),

(i) the rescheduling interest having fallen due on or before November 30, 1996 and not paid;

(ii) the late interest on the debts referred to in (i) above, having accrued on or before November 30, 1996 and not paid;

(iii) the principal and rescheduling interest having fallen due between December 1, 1996 and December 31, 1997, both dates inclusive, and not paid;

(iv) the principal and rescheduling interest having fallen due between January 1, 1998 and December 31, 1998, both dates inclusive, and not paid; and

(v) the principal and rescheduling interest having fallen due between January 1, 1999 and November 30, 1999, both dates inclusive, and not paid.

(c)	With respect to the commercial debts previously rescheduled in accordance with the arrangements made by the Notes exchanged between the Government of Japan and the Government of the United Republic of Tanzania on September 11, 1992 concerning the debt relief measures in respect of Tanzanian commercial debts (hereinafter referred to as "the Previous Notes III"), excluding the debts referred to in (d) of sub- paragraph (1) of paragraph 1 of the Previous Notes III,

(i) the rescheduling interest having fallen due on or before November 30, 1996 and not paid;

(ii) the late interest on the debts referred to in (i) above, having accrued on or before November 30, 1996 and not paid;

(iii) the principal and rescheduling interest having fallen due between December 1, 1996 and December 31, 1997, both dates inclusive, and not paid;

(iv) the principal and rescheduling interest having fallen due between January 1, 1998 and December 31, 1998, both dates inclusive, and not paid; and

(v) the principal and rescheduling interest having fallen due between January 1, 1999 and November 30, 1999, both dates inclusive, and not paid.

(d)	With respect to the commercial debts previously rescheduled in accordance with the arrangements made by the Notes exchanged between the Government of Japan and the Government of the United Republic of Tanzania on December 14, 1993 concerning the debt relief measures in respect of Tanzanian commercial debts (hereinafter referred to as "the Previous Notes IV"), excluding the debts referred to in (c) of sub-paragraph (1) of paragraph 1 of the Previous Notes IV,

(i) the principal and rescheduling interest having fallen due on or before November 30, 1996 and not paid;

(ii) the late interest on the debts referred to in (i) above, having accrued on or before November 30, 1996 and not paid; and

(iii) the principal and rescheduling interest having fallen due between December 1, 1996 and June 30, 1997, both dates inclusive, and not paid.

	(2)	The Rescheduled Commercial Debts consist of debts contracted in Japanese yen and in United States dollars.

(a)	The total amount of the debts referred to in (a)(i) of sub-paragraph (1) above is estimated at seventeen billion three hundred five million three hundred seventy-two thousand six hundred and forty-three yen (17,305,372,643) for the debts contracted in Japanese yen and four hundred eighteen thousand three hundred and ninety United States dollars and thirty-two cents ($418,390.32) for the debts contracted in United States dollars.

(b)	The total amount of the debts referred to in (a)(ii) of sub-paragraph (1) above is calculated in accordance with the method of calculation shown in Annex I attached hereto.

(c)	The total amount of the debts referred to in (a)(iii) of sub-paragraph (1) above is estimated at two billion one hundred seventy-seven million one hundred fifty-eight thousand seven hundred and sixty-nine yen (2,177,158,769) for the debts contracted in Japanese yen and fifty-two thousand two hundred and nine United States dollars and seventeen cents ($52,209.17) for the debts contracted in United States dollars.

(d)	The total amount of the debts referred to in (b)(i) of sub-paragraph (1) above is estimated at one billion nine hundred sixty-two million seven hundred thousand three hundred and fifty-two yen (1,962,700,352) for the debts contracted in Japanese yen and three hundred fifty-five thousand seven hundred and forty-seven United States dollars and seventy-three cents ($355,747.73) for the debts contracted in United States dollars.

(e)	The total amount of the debts referred to in (b)(ii) of sub-paragraph (1) above is calculated in accordance with the method of calculation shown in Annex I attached hereto.

(f)	The total amount of the debts referred to in (b)(iii) of sub-paragraph (1) above is estimated at five billion two hundred sixty-three million three hundred fifty-six thousand one hundred and sixty-five yen (5,263,356,165) for the debts contracted in Japanese yen and eight hundred seventeen thousand one hundred and four United States dollars and eighty-four cents ($817,104.84) for the debts contracted in United States dollars.

(g)	The total amount of the debts referred to in (b)(iv) of sub-paragraph (1) above is estimated at three billion five hundred forty million four hundred fifty thousand seven hundred and thirty-four yen (3,54O,45O,734) for the debts contracted in Japanese yen and five hundred twenty-two thousand one hundred and ninety-two United States dollars and thirteen cents ($522,192.13) for the debts contracted in United States dollars.

(h)	The total amount of the debts referred to in (b)(v) of sub-paragraph (1) above is estimated at one billion eight hundred fifty-five million three hundred fifty-five thousand eight hundred and sixty-eight yen (1,855,355,868) for the debts contracted in Japanese yen and two hundred fifty-five thousand two hundred and eighty-nine United States dollars and eleven cents ($255,289.11) for the debts contracted in United States dollars.

(i)	The total amount of the debts referred to in (c)(i) of sub-paragraph (1) above is estimated at two hundred thirty-five million two hundred twenty-five thousand nine hundred and ninety-three yen (235,225,993) for the debts contracted in Japanese yen and four thousand two hundred and seventy-one United States dollars and forty-six cents ($4,271.46) for the debts contracted in United States dollars.

(j)	The total amount of the debts referred to in (c)(ii) of sub-paragraph (1) above is calculated in accordance with the method of calculation shown in Annex I attached hereto.

(k)	The total amount of the debts referred to in (c)(iii) of sub-paragraph (1) above is estimated at three hundred forty-seven million nine hundred thirty one thousand one hundred and thirty-eight yen (347,931,138) for the debts contracted in Japanese yen and five thousand eight hundred and ninety-three United States dollars and seventy-one cents ($5,893.71) for the debts contracted in United States dollars.

(l)	The total amount of the debts referred to in (c)(iv) of sub-paragraph (1) above is estimated at five hundred eighty-nine million eighty-one thousand nine hundred and seventy-five yen (589,081,975) for the debts contracted in Japanese yen and nine thousand and eighty-seven United States dollars and seventy-four cents ($9,087.74) for the debts contracted in United States dollars.

(m)	The total amount of the debts referred to in (c)(v) of sub-paragraph (1) above is estimated at three hundred ninety-three million nine hundred seventeen thousand two hundred and four yen (393,917,204) for the debts contracted in Japanese yen and five thousand nine hundred and sixty-seven United States dollars and sixty-five cents ($5,967.65) for the debts contracted in United States dollars.

(n)	The total amount of the debts referred to in (d)(i) of sub-paragraph (1) above is estimated at six hundred fifty-one million eight hundred eighty-four thousand nine hundred and fifty-four yen (65l,884,954) for the debts contracted in Japanese yen and fifteen thousand three hundred and twenty-nine United States dollars and ninety-nine cents ($15,329.99) for the debts contracted in United States dollars.

(o)	The total amount of the debts referred to in (d)(ii) of sub-paragraph (1) above is calculated in accordance with the method of calculation shown in Annex I attached hereto.

(p)	The total amount of the debts referred to in (d)(iii) of sub-paragraph (1) above is estimated at one hundred seventy-two million nine thousand one hundred and eighty-seven yen (172,009,187) for the debts contracted in Japanese yen and four thousand and two United States dollars and sixty-seven cents ($4,002.67) for the debts contracted in United States dollars.

	(3)	Modifications may be made to the total amounts referred to in sub-paragraph (2) above by agreement between the authorities concerned of the Government of Japan and of the Government of the United Republic of Tanzania, after the final verification to be made by the authorities concerned of the two Governments.

2.	(1)	The Government of the United Republic of Tanzania will notify the Government of Japan, through the Central Bank of the United Republic of Tanzania, of the amount and dates of payments which will be made in order to settle the Rescheduled Commercial Debts in accordance with the payment scheme as set out in sub-paragraph (4) below (hereinafter referred to as "the Payment Scheme").

	(2)	The Government of the United Republic of Tanzania will pay the total amount of the Rescheduled Commercial Debts to the Creditors in the currency or currencies designated in the contracts concerned through the Central Bank of the United Republic of Tanzania in accordance with the Payment Scheme.

	(3)	The Government of Japan will take possible measures, within the scope of the relevant laws and regulations in force in Japan, to facilitate the settlement of the commercial debts concerned by the payment to be made in accordance with the Payment Scheme.

	(4)	Each of the debts composing the Rescheduled Commercial Debts will be paid in accordance with the following scheme:

(a)	The debts referred to in (a), (b) and (c) of sub-paragraph (1) of paragraph 1 will be paid in sixty-one (61) semi-annual installments beginning on June 1, 2001 in accordance with the payment schedule shown in Annex II attached hereto.

(b)	The debts referred to in (d) of sub-paragraph (1) of paragraph 1 will be paid in six (6) semi-annual installments beginning on December 1, 2001 in accordance with the payment schedule shown in Annex III attached hereto.

3.	(1)	The Government of the United Republic of Tanzania will pay to the Creditors, interest to be calculated as described in sub-paragraph (3) below on each of the commercial debts concerned to the extent that they have not been settled, in accordance with the following schedule:

(a)	the first payment of interest will be made on June 1, 2001, and

(b)	the consecutive payments of interest after the first payment will be made on June 1 and December 1, each year.

(2)	(a)	The rate of interest on the debts referred to in (a)(i) and (ii) of sub-paragraph (1) of paragraph 1, applied for the period between December 1, 1996 and the previous day of the date of exchange of the present Notes, both dates inclusive, will be seven per cent (7%) per annum for the debts contracted in Japanese yen, and seven point five per cent (7.5%) per annum for the debts contracted in United States dollars.

(b)	The rate of interest on the debts referred to in (a)(i) and (ii) of sub-paragraph (1) of paragraph 1, applied from the date of exchange of the present Notes will be one point seven three nine five per cent (1.7395%) per annum for the debts contracted in Japanese yen, and two point zero one nine four per cent (2.0194%) per annum for the debts contracted in United States dollars.

(c)	The rate of interest on the debts referred to in (a)(iii) of sub-paragraph (1) of paragraph 1, applied for the period between each original due date and the previous day of the date of exchange of the present Notes, both dates inclusive, will be seven per cent (7%) per annum for the debts contracted in Japanese yen, and seven point five per cent (7.5%) per annum for the debts contracted in United States dollars.

(d)	The rate of interest on the debts referred to in (a)(iii) of sub-paragraph (1) of paragraph 1, applied from the date of exchange of the present Notes will be one point seven three nine five per cent (1.7395%) per annum for the debts contracted in Japanese yen, and two point zero one nine four per cent (2.0194%) per annum for the debts contracted in United States dollars.

(e)	The rate of interest on the debts referred to in (b)(i) and (ii) of sub-paragraph (1) of paragraph 1, applied for the period between December 1, 1996 and the previous day of the date of exchange of the present Notes, both dates inclusive, will be three point five per cent (3.5%) per annum for the debts contracted in Japanese yen, and four point five per cent (4.5%) per annum for the debts contracted in United States dollars.

(f)	The rate of interest on the debts referred to in (b)(i) and (ii) of sub-paragraph (1) of paragraph 1, applied from the date of exchange of the present Notes will be three point four three seven two per cent (3.4372%) per annum for the debts contracted in Japanese yen, and three point eight one four five per cent (3.8145%) per annum for the debts contracted in United States dollars.

(g)	The rate of interest on the debts referred to in (b)(iii), (iv) and (v) of sub-paragraph (1) of paragraph 1, applied for the period between each original due date and the previous day of the date of exchange of the present Notes, both dates inclusive, will be three point five per cent (3.5%) per annum for the debts contracted in Japanese yen, and four point five per cent (4.5%) per annum for the debts contracted in United States dollars.

(h)	The rate of interest on the debts referred to in (b)(iii), (iv) and (v) of sub-paragraph (1) of paragraph 1, applied from the date of exchange of the present Notes will be three point four three seven two per cent (3.4372%) per annum for the debts contracted in Japanese yen, and three point eight one four five per cent (3.8145%) per annum for the debts contracted in United States dollars.

(i)	The rate of interest on the debts referred to in (c)(i) and (ii) of sub-paragraph (1) of paragraph 1, applied for the period between December 1, 1996 and the previous day of the date of exchange of the present Notes, both dates inclusive, will be four point seven per cent (4.7%) per annum for the debts contracted in Japanese yen, and five point seven per cent (5.7%) per annum for the debts contracted in United States dollars.

(j)	The rate of interest on the debts referred to in (c)(i) and (ii) of sub-paragraph (1) of paragraph 1, applied from the date of exchange of the present Notes will be three point four three seven two per cent (3.4372%) per annum for the debts contracted in Japanese yen, and three point eight one four five per cent (3.8145%) per annum for the debts contracted in United States dollars.

(k)	The rate of interest on the debts referred to in (c)(iii), (iv) and (v) of sub-paragraph (1) of paragraph 1, applied for the period between each original due date and the previous day of the date of exchange of the present Notes, both dates inclusive, will be four point seven per cent (4.7%) per annum for the debts contracted in Japanese yen, and five point seven per cent (5.7%) per annum for the debts contracted in United States dollars.

(l)	The rate of interest on the debts referred to in (c)(iii), (iv) and (v) of sub-paragraph (1) of paragraph 1, applied from the date of exchange of the present Notes will be three point four three seven two per cent (3.4372%) per annum for the debts contracted in Japanese yen, and three point eight one four five per cent (3.8145%) per annum for the debts contracted in United States dollars.

(m)	The rate of interest on the debts referred to in (d)(i) and (ii) of sub-paragraph (1) of paragraph 1, applied for the period between December 1, 1996 and the previous day of the date of exchange of the present Notes, both dates inclusive, will be eight per cent (8%) per annum for the debts contracted in Japanese yen, and nine per cent (9%) per annum for the debts contracted in United States dollars.

(n)	The rate of interest on the debts referred to in (d)(i) and (ii) of sub-paragraph (1) of paragraph 1, applied from the date of exchange of the present Notes will be eight point two per cent (8.2%) per annum for the debts contracted in Japanese yen, and eight point nine per cent (8.9%) per annum for the debts contracted in United States dollars.

(o)	The rate of interest on the debts referred to in (d)(iii) of sub-paragraph (1) of paragraph 1, applied for the period between each original due date and the previous day of the date of exchange of the present Notes, both dates inclusive, will be eight per cent (8%) per annum for the debts contracted in Japanese yen, and nine per cent (9%) per annum for the debts contracted in United States dollars.

(p)	The rate of interest on the debts referred to in (d)(iii) of sub-paragraph (1) of paragraph 1, applied from the date of exchange of the present Notes will be eight point two per cent (8.2%) per annum for the debts contracted in Japanese yen, and eight point nine per cent (8.9%) per annum for the debts contracted in United States dollars.

	(3)	The amount of interest to be paid will be calculated by multiplying the amount of the debt unsettled by the product of the number of the days the debt has not been settled and the daily interest rate.  The daily interest rate is calculated respectively by dividing the rate of interest referred to in sub-paragraph (2) above by three hundred and sixty-five (365).  The illustration in the form of numerical formula of the method of calculation mentioned above is shown in Annex IV attached hereto.

	(4)	In case where any payment under the Payment Scheme as set out in sub-paragraph (4) of paragraph 2, or the payment schedule of interest as set out in sub-paragraph (1) above, is delayed, the Government of the United Republic of Tanzania will pay the late interest accruing from the overdue amount at the rate of nine point two per cent (9.2%) per annum for the debts contracted in Japanese yen and nine point nine per cent (9.9%) per annum for the debts contracted in United States dollars.

	(5)	The interest paid will be exempted from all taxes and duties of the United Republic of Tanzania.

4.	The Government of the United Republic of Tanzania will pay bank charges incidental to the settlement of the commercial debts concerned.

5.	It is confirmed that the terms and conditions of the contracts concerned not specifically referred to in this Note will remain applicable, unless otherwise agreed upon by the parties to the contracts concerned.

6.	If the Government of the United Republic of Tanzania accords to creditors resident in any third country terms and conditions more favourable than those referred to in sub-paragraph (4) of paragraph 2 with regard to debt relief measures, the Government of the United Republic of Tanzania will forthwith accord to the Creditors the terms and conditions not less favourable than those accorded to creditors resident in such third country.

7.	If the representative of the Government of the United Republic of Tanzania and the representatives of the Governments of the creditor countries concerned come to a new conclusion in connection with reorganization of the Tanzanian debts including the debts covered by the present arrangements, consultations will be held between the Government of Japan and the Government of the United Republic of Tanzania, in order to discuss the matter of continuation or modification of the present arrangements.

	I should be grateful if Your Excellency would confirm the foregoing understanding on behalf of the Government of the United Republic of Tanzania.

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

(Signed)	Keitaro Sato
Ambassador Extraordinary
and Plenipotentiary of Japan
to the United Republic
of Tanzania

His Excellency
Mr. Basil P. Mramba
Minister for Finance
of the United Republic
of Tanzania

ANNEX I

	Numerical formula of the method of calculation of the amount of late interest

I = A x D x R x 1/365

I :	The amount of late interest

A :	The amount of the debt unsettled

D :	The number of the days the debt has not been settled

R :	The rate of late interest (per annum)

(NOTE)

(1)	D is equal to the number of the days from each original due date stipulated in the Previous Notes I, II, III and IV to November 30, 1996, both dates inclusive.

(2)	(i)	With respect to the late interest referred to in (a)(ii) of sub-paragraph (1) of paragraph 1, R is seven per cent (7%) per annum for the debts contracted in Japanese yen, and seven point five per cent (7.5%) per annum for the debts contracted in United States dollars.

(ii) With respect to the late interest referred to in (b)(ii) of sub-paragraph (1) of paragraph 1, R is three point five per cent (3.5%) per annum for the debts contracted in Japanese yen, and four point five per cent (4.5%) per annum for the debts contracted in United States dollars.

(iii) With respect to the late interest referred to in (c)(ii) of sub-paragraph (1) of paragraph 1, R is four point seven per cent (4.7%) per annum for the debts contracted in Japanese yen, and five point seven per cent (5.7%) per annum for the debts contracted in United States dollars.

(iv) With respect to the late interest referred to in (d)(ii) of sub-paragraph (1) of paragraph 1, R is eight per cent (8%) per annum for the debts contracted in Japanese yen, and nine per cent (9%) per annum for the debts contracted in United States dollars.

ANNEX II

	1.15%	on	June 1, 	2001

	0.24%	on	December 1, 	2001

	0.25%	on	June 1, 	2002

	0.27%	on	December 1, 	2002

	0.28%	on	June 1, 	2003

	0.30%	on	December 1, 	2003

	0.32%	on	June 1, 	2004

	0.33%	on	December 1, 	2004

	0.35%	on	June 1, 	2005

	0.37%	on	December 1, 	2005

	0.40%	on	June 1, 	2006

	0.42%	on	December 1, 	2006

	0.44%	on	June 1, 	2007

	0.47%	on	December 1, 	2007

	0.49%	on	June 1, 	2008

	0.52%	on	December 1, 	2008

	0.55%	on	June 1, 	2009

	0.58%	on	December 1, 	2009

	0.61%	on	June 1, 	2010

	0.64%	on	December 1, 	2010

	0.68%	on	June 1, 	2011

	0.71%	on	December 1, 	2011

	0.75%	on	June 1, 	2012

	0.79%	on	December 1, 	2012

	0.83%	on	June 1, 	2013

	0.88%	on	December 1, 	2013

	0.92%	on	June 1, 	2014

	0.97%	on	December 1, 	2014

	1.02%	on	June 1, 	2015

	1.08%	on	December 1, 	2015

	1.13%	on	June 1, 	2016

	1.19%	on	December 1, 	2016

	1.26%	on	June 1, 	2017

	1.32%	on	December 1, 	2017

	1.39%	on	June 1, 	2018

	1.46%	on	December 1, 	2018

	1.54%	on	June 1,	　  　　2019

	1.62%	on	December 1, 	2019

	1.70%	on	June 1, 	2020

	1.79%	on	December 1, 	2020

	1.88%	on	June 1, 	2021

	1.98%	on	December 1, 	2021

	2.08%	on	June 1, 	2022

	2.19%	on	December 1, 	2022

	2.30%	on	June 1, 	2023

	2.42%	on	December 1, 	2023

	2.54%	on	June 1, 	2024

	2.67%	on	December 1, 	2024

	2.81%	on	June 1, 	2025

	2.95%	on	December 1, 	2025

	3.10%	on	June 1, 	2026

	3.26%	on	December 1, 	2026

	3.42%	on	June 1, 	2027

	3.59%	on	December 1,	2027

	3.78%	on	June 1, 	2028

	3.97%	on	December 1, 	2028

	4.17%	on	June 1, 	2029

	4.38%	on	December 1, 	2029

	4.60%	on	June 1, 	2030

	4.84%	on	December 1, 	2030

	5.06%	on	June 1, 	2031

ANNEX III

	16.0%	on	December 1, 	2001

	16.0%	on	June 1, 	2002

	16.0%	on	December 1, 	2002

	16.0%	on	June 1, 	2003

	16.0%	on	December 1, 	2003

	20.0%	on	June 1, 	2004

ANNEX IV

	Numerical formula of the method of calculation of theamount of interest on the Rescheduled Commercial Debts

I = A x D x R x 1/365

I :	The amount of interest

A :	The amount of the debt unsettled

D :	The number of the days the debt has not been settled

R :	The rate of interest (per annum)

(NOTE)

(1)	With respect to the first payment of interest on June 1, 2001 for the debts referred to in (a)(i), (a)(ii), (b)(i), (b)(ii), (c)(i), (c)(ii), (d)(i) and (d)(ii) of sub-paragraph (1) of paragraph 1, D is equal to the number of the days from December 1, 1996 to May 31, 2001, both dates inclusive.

(2)	With respect to the first payment of interest on June 1, 2001 for the debts referred to in (a)(iii), (b)(iii), (b)(iv), (b)(v), (c)(iii), (c)(iv), (c)(v) and (d)(iii) of sub-paragraph (1) of paragraph 1, D is equal to the number of the days from -each original due date stipulated in the Previous Notes I, II, III and IV to May 31, 2001, both dates inclusive.

(3)	With respect to the consecutive payments of interest after the first payment, D is equal to the number of days from the day of the previous payment to the previous day of the payment, both dates inclusive.

(Tanzanian Note)

Dar es Salaam, February 19, 2001

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 the Government of the United Republic of Tanzania the understanding set forth in Your Excellency's Note.

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

(Signed)	Basil P. Mramba
Minister for Finance
of the United Republic
of Tanzania

His Excellency
Mr. Keitaro Sato
Ambassador Extraordinary
and Plenipotentiary of Japan
to the United Republic
of Tanzania