(Japanese Note) 

　New Delhi, March 16,1995

　Madam,

　I have the honour to refer to the recent discussions held between the representatives of the Government of Japan and of the Government of India 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 Improvement of Medical Equipment at Osmania General Hospital (hereinafter referred to as "the Project") by the Government of India, the Government of Japan will extend to the Government of India, in accordance with the relevant laws and regulations of Japan, a grant up to seven hundred and fifty-seven million yen (757,000,000 ) (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 15, 1996, unless the period is extended by mutual agreement between the authorities concerned of the two Governments.

3. (1) The Grant will be used by the Government of India properly and exclusively for the purchase of the products of Japan or India and the services of Japanese or Indian 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 Indian physical or juridical persons in the case of Indian nationals.):

(a) vehicles necessary for the execution of the Project and services necessary for the procurement thereof;