(Japanese Note)

　Skopje, November 29, 1995

　Excellency,

　I have the honour to refer to the recent discussions held between the representatives of my Government and of your Government 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 my Government the following arrangements:

1. For the purpose of contributing to the execution of the project for Upgrading Medical Equipment (hereinafter referred to as "the Project") by your Government, my Government will extend to your Government, in accordance with the relevant laws and regulations of Japan, a grant up to five hundred and fifty million yen (550,000,000) (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 November 28, 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 your Government properly and exclusively for the purchase of the products of my country or your country and the services of my country's nationals or your country's nationals listed below:

(a) equipment necessary for the execution of the Project and services necessary for the installation thereof; and

(b) services necessary for the transportation of the products referred to in (a) above to your country and those for internal transportation therein.
(The term nationals whenever used in the present arrangements means:

(i) in the case of my country's nationals, physical persons possessing the nationality of my country or juridical persons controlled by physical persons possessing the nationality of my country; and

(ii) in the case of your country's nationals, physical persons possessing the nationality of your country or juridical persons of your country.)

(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 services of nationals who are neither my country's nationals nor your country's nationals.

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

5.(1) My government will execute the Grant by making payments in Japanese yen to cover the obligations incurred by your Government 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 your Government in an authorized foreign exchange bank of Japan designated by your Government 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 my Government under an authorization to pay issued by your Government 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 my government and to pay to my country's 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 your Government or its designated authority.

6.(1) Your Government will take necessary measures:

(a) to ensure prompt unloading and customs clearance and internal transportation in your country of the products purchased under the Grant;

(b) to exempt my country's nationals from customs duties, internal taxes and other fiscal levies which may be imposed in your country with respect to the supply of the products and services under the Verified Contracts.

(c) to accord my country's 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 your country 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, your Government 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 from your country.

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 Excellency's Note in reply confirming on behalf of Your Government the foregoing arrangements shall be regarded as constituting an agreement between the two Governments, which will enter into force on the date of Your Excellency's reply.

　I avail myself of this opportunity to renew to Your Excellency the assurance of my highest consideration.

　(Signed) Tsuyoshi Kurokawa
Ambassador Extraordinary and Plenipotentiary of Japan to the Former Yugoslav Republic of Macedonia

　His Excellency
Mr. Stevo Crvenkovski
Minister of Foreign Affairs of the Former Yugoslav Republic of Macedonia

(Macedonian Note)

　Skopje, November 29, 1995

　Excellency,

　I have the honour to acknowledge the receipt of Your Excellency's Note of today's date, which reads as follows:

"(Japanese Note)" 

　I have further the honour to confirm on behalf of my Government the foregoing arrangements and to agree that Your Excellency's 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 renew to Your Excellency the assurance of my highest consideration.

　(Signed) Stevo Crvenkovski
Minister of Foreign Affairs of the Former Yugoslav Republic of Macedonia

　His Excellency
Mr. Tsuyoshi Kurokawa
Ambassador Extraordinary and Plenipotentiary of Japan to the Former Yugoslav Republic of Macedonia