(Japanese Note) 

　Jakarta, May 2,1995

　Excellency,

　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 Republic of Indonesia 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 Strengthening Road Transport Environment Management (hereinafter referred to as "the Project") by the Government of the Republic of Indonesia, the Government of Japan will extend to the Government of the Republic of Indonesia, in accordance with the relevant laws and regulations of Japan, a grant up to five hundred and twenty-five million yen (525,000,000) (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. (1) The Grant will be used by the Government of the Republic of Indonesia properly and exclusively for the purchase of the products of Japan or the Republic of Indonesia and the services of Japanese or Indonesian 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 Indonesian physical or juridical persons in the case of Indonesian nationals.)