(Japanese Note) 

　Phnom Penh, March 21,1995

　Excellency,

　I have the honour to refer to the recent discussions held between the representatives of the Government of Japan and of the Royal Government of Cambodia 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 go promotion of the economic structural adjustment efforts by the Royal Government of Cambodia as well as mitigation of the economic difficulties, including indebtedness, of the Kingdom of Cambodia, the Government of Japan will extend to the Royal Government of Cambodia, in accordance with the relevant laws and regulations of Japan, a grant of two billion and five hundred million yen (2,500,000,000) (hereinafter referred to as "the Grant").

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

(2) The list mentioned in sub-paragraph (1) 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 (1) above will be agreed upon between the authorities concerned of the two Governments.