(Japanese Note) 

　 Dhaka, November 8,1995

　Sir,

　I have the honour to refer 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 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 to the execution of the Project for thee Eradication of Poliomyelitis (hereinafter referred to as "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 three hundred and six million yen (306,000,000) (hereinafter referred to as "the Grant").

2. The Grant will be made available during the period between the date of coming into force of the present arrangements and March 31, 1996, unless the period is extended by mutual agreement between the authorities concerned of the two Governments.

3. The Grant will be used by the Government of the People's Republic of Bangladesh properly and exclusively for the purchase of the products and the services listed below:

(a) polio vaccine and equipment necessary for the execution of the Project; and

(b) services necessary for the transportation of the products referred to in (a) above to ports in 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 the United Nations Children's Fund (hereinafter referred to as "the Fund") for the Purchase of the products and services referred to in paragraph 3. Such contracts shall be verified by the Government 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 Fund who is the party 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 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 by the Fund;

(c) to accord the personnel or persons concerned of the Fund 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

(e) to bear all the expenses, other than those covered by the Grant, necessary for the execution of the Project.

(2) With regard to the shipping and marine insurance of products purchased under the Grant, the Government of the People's Republic of Bangladesh will refrain from imposing any restrictions that may hinder fair and free competition among the shipping and marine insurance companies.

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

7. 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 extend to you the assurance of my high consideration.

　 (Signed) Shuhei Takahashi
Charge d'Affaires, a.i. of Japan to the People's Republic of Bangladesh 

　 Mr. M. Fazlur Rahman
Additional Secretary
Economic Relations Division
Ministry of Finance of the People's Republic of Bangladesh

(Bangladesh Note) 

　 Dhaka, November 8,1995

　 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 extend to you the assurance of my high consideration.

　 (Signed) M. Fazlur Rahman
Additional Secretary Economic Relations Division Ministry of Finance of the People's Republic of Bangladesh

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