(Japanese Note)

　St. John's November 18, 1997

　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 Antigua and Barbuda 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 construction of Fish Landing and Distributing Facilities in Saint John's (hereinafter referred to as "the Project") by the Government of Antigua and Barbuda, the Government of Japan will extend to the Government of Antigua and Barbuda, in accordance with the relevant laws and regulations of Japan, a grant up to one billion two hundred and eighty million yen (1, 280,000,000) (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 17, 1998, 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 Antigua and Barbuda properly and exclusively for the purchase of the products of Japan or Antigua and Barbuda and the services of Japanese or Antigua and Barbuda's 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 Antigua and Barbuda's physical or juridical persons in the case of Antigua and Barbuda's nationals.)

(a) products and services necessary for the construction of quay, cold store and other related facilities (hereinafter jointly referred to as "the Facilities");

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

(c) vehicle necessary for the execution of the Project and services necessary for the procurement thereof; and

(d) services necessary for the transportation of the products referred to in(a),(b)and(c)above to ports in Antigua and Barbuda, and those for internal transportation therein.

(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),(b)and(c)of sub-paragraph(1)above, which are products of countries other than Japan or Antigua and Barbuda and the services of the kind mentioned in(a),(b),(c)and(d)of sub-paragraph(1)above, which are services of nationals of countries other than Japan or Antigua and Barbuda.

4. The Government of Antigua and Barbuda or its designated authority will enter into contracts in Japanese yen with Japanese nationals 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 Antigua and Barbuda 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 Antigua and Barbuda in an authorized foreign exchange bank of Japan designated by the Government of Antigua and Barbuda 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 Antigua and Barbuda 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 Japanese 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 the Government of Antigua and Barbuda or its designated authority.

　I have further the honour to propose that this Note and Your Excellency's Note in reply confirming on behalf of the Government of Antigua and Barbuda 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 extend to Your Excellency the assurance of my highest consideration.

　(Signed) Yasuhiko Tanaka
Ambassador Extraordinary and Plenipotentiary of Japan to Antigua and Barbuda

　The Honourable
Mr. Lester Bird
Prime Minister of Antigua and Barguda

(Antigua and Barbuda's Note)

　St. John's, November 18, 1997

　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 the Government of Antigua and Barbuda 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 extend to Your Excellency the assurance of my highest consideration.

　(Signed) Lester Bird
Prime Minister of Antigua and Barguda

　His Excellency
Mr. Yasuhiko Tanaka
Ambassador Extraordinary and Plenipotentiary of Japan to Antigua and Barbuda