(Japanese Note)

　Dhaka, March 20, 1995 

　Sir,

　I have the honour to refer to the resolution 165 dated March ll, 1978 of the Third Part of the Ninth Special Session of the Trade and Development Board of the United Nations Conference on Trade and Development regarding debt and development problems of developing countries and to the recent discussions held between the representatives of the Government of Japan and of the Government of the People's Republic of Bangladesh concerning Japanese economic cooperation to be extended to the People's Republic of Bangladesh 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. Noting the debts of the Government of the People's l. Republic of Bangladesh under the loan agreement concluded in accordance with the Notes exchanged between the Government of Japan and the Government of the People's Republic of Bangladesh on the dates enumerated in the list attached to this Note, the Government of Japan will extend to the Government of the People's Republic of Bangladesh, in accordance with the relevant laws and regulations of Japan, a grant of seven billion nine hundred and forty five million three hundred and seventy thousand yen (￥7,945,370,000) (hereinafter referred to as "the Grant") for the purpose of contributing to the development of the economy of the People's Republic of Bangladesh and the enhancement of the welfare of its people. 

2.(I) The Grant and its accrued interest will be used by the Government of the People's Republic of Bangladesh properly and exclusively for the purchase of products enumerated in a list to be mutually agreed upon between the authorities concerned of the two Governments and services incidental to such products, provided that those products are produced in eligible source countries. 

(2)  The list mentioned in sub-paragraph (I) above will be subject to modifications which may be agreed upon between the authorities concerned of the two Governments. 

(3)  The scope of the eligible source countries mentioned in sub-paragraph (I) above will be agreed upon between the authorities concerned of the two Governments.

3.(I) The Government of the People's Republic of Bangladesh will open a yen ordinary deposit account at an authorized foreign exchange bank of Japan in the name of the Government of the People's Republic of Bangladesh (hereinafter referred to as "the Account" ) within fourteen days after the date of coming into force of the present arrangements and will notify in writing the Government of Japan of the completion of the procedure for opening the Account within seven days after the date of the opening of the Account . 

(2)  The sole purpose of the Account is to receive the payment in Japanese yen by the Government of Japan referred to in paragraph 4 as well as to make payments necessary for the purchase of the products and services referred to in sub-paragraph (I) of paragraph 2 , and such other payment as may be agreed upon by the authorities concerned of the two Governments . 

4.  The Government of Japan will execute the Grant by making payment Grant by making payment in Japanese yen of the amount referred to in paragraph I to the Account during the period between the date of receipt of the written notification referred to in sub-paragraph (1) of paragraph 3 and 31 March, 1995, unless the period is extended by mutual agreement between the authorities concerned of the two Governments. 

5.(I) The Government of the People's Republic of Bangladesh will take necessary measures: 

(a)  to use the Grant and its accrued interest period after the Grant is executed; 

(b)  to ensure that customs duties, internal taxes and other fiscal levies which may be imposed in the People's Republic of Bangladesh with respect to the purchase of the products and services referred to in sub-paragraph (I) of paragraph 2 shall not be borne by the Grant; 

(c)  to ensure that the products purchased under the Grant be maintained and used properly and effectively 
for the development of the economy of the People's Republic of Bangladesh and the enhancement of the welfare of its people; and 

(d)  to submit to the Government of Japan a report prepared in a written form acceptable to the Government of Japan on the transactions on the Account together with copies of contracts, vouchers and other documents concerning the relevant transactions without delay when the Grant and its accrued interest are completely drawn in accordance with the provisions of sub-paragraph (2) of paragraph 3 or upon request by the Government of Japan . 

(2)  The products purchased under the Grant shall not be re-exported from the People's Republic of Bangladesh. 

6. 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 Note in reply confirming on behalf of the Government of the People's Republic of Bangladesh 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) Yoshihisa Kuroda Charg6 d'Affaires, a.i. of Japan to the People's Republic of Bangladesh 

　Dr. Saadat Husain Additional Secretary Economic Relations Division Ministry of Finance of the People's Republic of Bangladesh 

List 

l. March 29, 1974 

2. March 28, 1975 

3. May ll, 1976 

4. April 5, 1977 

5. December 20, 1977 

6. July 28, 1978 

7. January 30, 1979 

8. November 9, 1979 

9. September 15, 1980 

lO. December 15, 1980 

11. April 6, 1981 

12. July 20, 1981 

13. September 20, 1982 

14. November 11, 1983 

15. August 14, 1984 

16. June 7, 1985 

17. March 31, 1986 

18. January 18, 1987 

19. June l, 1987 

(Bangladesh Note)

　Dhaka, March 20, 1995 

　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 People's Republic of Bangladesh 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 renew to you the assurance of my high consideration. 

　(Signed) Saadat Husain Additional Secretary Economic Relations Division Ministry of Finance of the People's Republic of Bangladesh 

　Mr. Yoshihisa Kuroda Charge d'Affaires, a.i. of Japan to the People's Republic of Bangladesh