(Japanese Note)


						Antananarivo, March 1, 2007


Excellency,

	With reference to the Notes exchanged between the Government of Japan and the Government of the Republic of Madagascar on July 10,1990, May 31, 1991, September 18, 1998 and June 4, 2004 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, the French Republic, the Federal Republic of Germany, the Republic of Italy, the United Kingdom of Great Britain and Northern Ireland and the 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 Development Association and the International Monetary Fund respectively on October 18 and 21, 2004 that the Republic of Madagascar has met necessary conditions to receive comprehensive debt relief under the Enhanced Heavily Indebted Poor Countries Initiative and to the recent negotiations between the representatives of the Government of Japan and of the Government of the Republic of Madagascar that were held on the basis of the conclusions reached during the consultations between the representatives of the Government of the Republic of Madagascar and of the Government of the creditor countries concerned held in Paris on November 16, 2004, 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 July 1, 1983 between the Government of the Republic of Madagascar, its public sectors or other debtors concerned resident in the Republic of Madagascar on the one hand and the creditors concerned resident in Japan on the other, and which were covered by the guarantee of the Government of the Republic of Madagascar (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 October 1, 2004; 

		(ii)	all the rescheduling interest and the late interest having accrued on or before September 30, 2004 and not paid; and

		(iii)	all the rescheduling interest and the late interest having accrued between October 1, 2004 and the day preceding the date of exchange of the present Notes, both dates inclusive.

	(2)	The total amount of the debts referred to in (i) and (ii) of sub-paragraph (1) above is estimated at eight billion eight hundred and fourteen million twenty-two thousand and seventy-three yen (\ 8,814,022,073).

	(3)	The rates of the rescheduling interest and the late interest on the Debts accrued between October 1, 2004 and the day preceding the date of exchange of the present Notes, both dates inclusive, are shown in the ANNEX attached hereto.

	(4) Modifications may be made to the total amount 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 Madagascar.

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

3.	The Government of the Republic of Madagascar 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 Madagascar, 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 the present 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 Madagascar 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) Tadaharu Chichii
						Ambassador Extraordinary
						and Plenipotentiary of Japan
						to the Republic of Madagascar








His Excellency
Mr. Marcel Ranjeva
Minister of Foreign Affairs
of the Republic of Madagascar

(Malagasy Note)


						Antananarivo, March 1, 2007


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 Republic of Madagascar the foregoing arrangement and to agree that Your Excellency’s Note and this Note in reply shall constitute an agreement between the two Governments, which shall enter into force on the date of this Note in reply.

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








					   (Signed) Marcel Ranjeva
						Minister of Foreign Affairs
						of the Republic of Madagascar








His Excellency
Mr. Tadaharu Chichii
Ambassador Extraordinary
and Plenipotentiary of Japan
to the Republic of Madagascar