(Japanese Note)

La Paz, February 17, 2006

Excellency,

	With reference to the Notes exchanged between the Government of Japan and the Government of the Republic of Bolivia on October 25, 1990, January 29, 1996, July 14, 1997 and May 31, 2000 concerning debt relief measures (hereinafter referred to as “the Previous Notes”), to the statement issued at Okinawa on July 21, 2000 by the heads of State and Government of Japan, Canada, French Republic, Federal Republic of Germany, Republic of Italy, United Kingdom of Great Britain and Northern Ireland and United States of America regarding one hundred per cent cancellation of eligible commercial debts of the Heavily Indebted Poor Countries, to the approval given by the International Monetary Fund and the International Development Association on June 8, 2001 that the Republic of Bolivia has met necessary conditions to receive comprehensive debt relief under the Enhanced Heavily Indebted Poor Countries Initiative and to the recent negotiations between the representative of the Government of Japan and the Government of the Republic of Bolivia that were held on the basis of the conclusions reached during the consultations between the representatives of the Government of the Republic of Bolivia and of the Government of the creditor countries concerned held in Paris on July 10, 2001, I have the honour to propose on behalf of the Government of Japan the following arrangement:

1.	(1)	The present arrangement will apply to the total amount of the following principal, rescheduling interest and late interest of the commercial debts with a repayment period of more than one year insured by the Government of Japan, which were contracted before December 31, 1985 between the Government of the Republic of Bolivia, its public sectors or other debtors concerned resident in  the Republic of Bolivia on the one hand and the creditors concerned resident in Japan (hereinafter referred to as “the Creditors”) on the other, and which were covered by the guarantee of the Government of the Republic of Bolivia (hereinafter referred to as “the Debts”):

	For the commercial debts previously rescheduled pursuant to the arrangements made by the Previous Notes;

(i)	all the principal outstanding as of July 1, 2001;

(ii)	all the rescheduling interest (including late interest) having accrued on or before July 1, 2001 and not paid; and

(iii)	all the rescheduling interest (including late interest) having accrued between July 2, 2001 and the previous day of the date of exchange of this Note, both dates inclusive.

(2)	The total amount of the debts referred to in 
sub-paragraphs (1)(i) and (ii) above is estimated at seven billion ninety-two million five hundred and sixty-five thousand four hundred and fifty-four yen (\7,092,565,454) for the debts contracted in Japanese yen and two million seven hundred and seventy-three thousand five hundred and ninety-three dollars and fifty cents for the debts contracted in United States dollars ($2,773,593.50).

(3)	The rate of interests of the rescheduling interests (including late interests) on the Debts accrued between July 2, 2001 and the previous day of the date of exchange of this Note, both dates inclusive, are shown in the ANNEX attached hereto.

(4)	Modifications may be made to the total amounts referred to in sub-paragraph (2) above by mutual consent between the authorities concerned of the Government of Japan and the Government of the Republic of Bolivia.

2.	The debts referred to in sub-paragraphs (1)(i), (ii) and (iii) of paragraph 1. will be cancelled upon the date of entry into force of this arrangement.

3.	The Government of the Republic of Bolivia shall, in accordance with the result of the consultations between the two Governments, take necessary measures to reduce poverty and to foster economic and social development of the Republic of Bolivia, taking into account the fact that the Debts will be cancelled.

4.	It is confirmed that the terms and conditions of the contracts concerned not mentioned in this arrangement will remain applicable, unless otherwise agreed upon by the parties to the contracts concerned.

5.	The two Governments shall consult with each other in respect of any matter that may arise from or in connection with the present arrangement.

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 Bolivia the foregoing arrangement shall constitute an agreement between the two Governments, which shall enter into force on the date of Your Excellency’s Note in reply.

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

 (Signed)  	Mitsunori Shirakawa
					Ambassador Extraordinary
					and Plenipotentiary of Japan
					to the Republic of Bolivia

His Excellency
Mr. David Choquehuanca Céspedes
Minister of Foreign Affairs 
and Worship of the Republic 
of Bolivia

ANNEX



Column 1	Column 2	Column 3	Column 4	Column 5
Currency
of the Debt	
Date of the Notes exchanged (E/N) between the
Government of
Japan and the
Government of the Republic of Bolivia
	Debt referred to in the E/N in Column 2	Rate of rescheduling interest	Rate of late interest
Japanese yen	January 29, 1996	 1.(1)(a), (b)		1.7138%	8.70%
		 1.(1)(c)		5.8000%	
	  July     14, 1997	 1.(1)(a), (b)		1.5041%	8.50%
		 1.(1)(d), (e)		1.8780%	
		 1.(1)(c)		2.2518%	
	  May      31, 2000	 1.(1)(a), (c)		1.0810%	8.36%
		 1.(1)(e)		1.3231%	
		 1.(1)(b)		1.5652%	
		 1.(1)(d)		1.6459%	
US dollar	January 29, 1996	 1.(1)(a), (b)		1.7908%	8.90%
		 1.(1)(c)		6.7000%	
	  July     14, 1997	 1.(1)(a), (b)		1.6621%	
		 1.(1)(c),
 (d), (e)		2.0481%	
	  May      31, 2000	 1.(1)(a), (c)		1.1836%	8.70%
		 1.(1)(e)		1.4337%	
		 1.(1)(d)		1.5171%	
		 1.(1)(b)		1.9340%