(Japanese Note) 

　Dhaka, June 26,1995

　Sir,

　I have the honour to refer to the Exchange of Notes dated October 9,1994, between the Government of Japan and the Government of the People's Republic of Bangladesh concerning Japanese economic cooperation for the execution of the Project for the Construction of Portable Steel Bridges for Rural Roads (hereinafter referred to as "the Project").

　 I have further the honour to refer to the recent discussions held between the representatives of the two Governments concerning additional Japanese economic cooperation to be extended 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. For the purpose of contributing further to the execution of the Project by the Government of the People's Republic of Bangladesh, 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 up to seven hundred and eighty-million yen (780' 000,000 ) (hereinafter referred to as "the Grant").

2. The Grant will, in accordance with the relevant laws and regulations of Japan, be made available during each of the following periods within the limit of the corresponding amount for each term, unless such period is extended by mutual agreement between the authorities concerned of the two Governments:

(1) term I

　period between the date of coming into force of the present arrangements and March 31,1996;

　thirty-eight million yen (38,000,000)

(2) term II

　period between April 1,1996 and March 31,1997;

　seven hundred and forty-two million yen (742,000,000)

3. (1) The Grant will be used by the Government of the People's Republic of Bangladesh properly and exclusively for the purchase of the products of Japan or the People's Republic of Bangladesh and the services of Japanese or Bangladesh nationals listed below: (The term nationals whenever used in the present arrangements means Japanese physical persons or Japanese juridical persons controlled by Japanese physical persons in the case of Japanese nationals, and Bangladesh physical or juridical persons in the case of Bangladesh nationals.)

(a) portable steel bridges necessary for the execution of the Project and services necessary for the procurement thereof;

(b) engineering services necessary for the installation of portable steel bridges; and (c) services necessary for the transportation of the products referred to in (a) above to ports in the People's Republic of Bangladesh.

(2) Notwithstanding the provisions of sub-paragraph (1) above, when the two Governments deem it necessary, the Grant may be used for the purchase of the products of the kind mentioned in (a) of sub-paragraph (1) above, which are products of countries other than Japan or the People's Republic Bangladesh and the services of the kind mentioned in (a),(b) and (c) of sub-paragraph (1) above, which are services of nationals of countries other than Japan or the People's Republic of Bangladesh.

4. The Government of the People's Republic of Bangladesh or its designated authority will enter into contracts in Japanese yen with Japanese nationals for the purchase of the products and services referred to in paragraph 3. Such contracts shall be verified by the Governments of Japan to be eligible for the Grant.

5. (1) The Government of Japan will execute the Grant by making payments in Japanese yen to cover the obligations incurred by the Government of the people's Republic of Bangladesh or its designated authority under the contracts verified in accordance with the provisions of paragraph 4 (hereinafter referred to as "the Verified Contracts") to an account to be opened in the name of the Government of the people's Republic of Bangladesh in an authorized foreign exchange bank of Japan designated by the Government of the people's Republic of Bangladesh or its designated authority (hereinafter referred to as "the Bank").

(2) The payments referred to in sub-paragraph (1) above will be made when payment requests are presented by the Bank to the Government of Japan under an authorization to pay issued by the Government of the people's Republic of Bangladesh or its designated authority.

(3) The sole purpose of the account referred to in sub-paragraph (1) above is to receive the payments in Japanese yen by the Government of Japan and to pay to the Japanese nationals who are parties to the Verified Contracts. The procedural details concerning the credit to and debit from the account will be agreed upon through consultation between the Bank and the Government of the people's Republic of Bangladesh or its designated authority.

6. (1) The Government of the people's Republic of Bangladesh will take necessary measures:

(a) to ensure prompt unloading and customs clearance at ports of disembarkation in the people's Republic of Bangladesh and internal transportation therein of the products purchased under the Grant;

(b) to exempt Japanese nationals from customs duties internal taxes and other fiscal levies which may be imposed in the People's Republic of Bangladesh with respect to the supply of the products and services under the Verified Contracts;

(c) to accord Japanese nationals whose services may be required in connection with the supply of the products and services under the Verified Contracts such facilities as may be necessary for their entry into the People's Republic of Bangladesh and stay therein for the performance of their work;

(d) to ensure that the products purchased under the Grant be maintained and used properly and effectively for the execution of the project; and