Japanese Note)

　Dar es Salaam, Janauary 17, 1997

　Excellency,

　I have the honour to refer to the recent discussions held between the representativesGovernment of Japan and the Government of the United Republic of Japan concerning Japanese economic cooporation 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 Bridges of Trunk Road (hereinafter referred to as "the project" ) By the Government of the United Republic of Tanazania, the Government of Japan will extend to the Government of the United Republic of Tanzania, in accordance with the six hundred and twenty-five million yen (625,000,000)(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 January 16, 1998 ,unless the period is extended by mutual agreement between the authorities concernedof the two Governments.

3.(1) The Grant will be used by the Government of the United Republic of Tanzania properly and exclusively for the purchase of the products of Japan or the United Repubilc of Tanazania and the services of Japanese or Tanzanian nationals listed below: Z(The term nationals whenever used in theb present arrangement means Japanese physical persons or Japanese juridical persons controlled by Japanese physical persons in the case of Tanzanian nationals.)

(a) products and services necesary for the construction of the bridges and related facilities (hereinafter joinly referred to as "the Facilities") ; and 

(b) services necessary for the transportation of the products referred to in (a) above to ports in the United Republic of Tanzania, and those for internal transportation therein.

(2) Nowithstanding the provisions of sub-paragraph Grant may be used 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 products of countries other than Japan or the United Republic of Tanzania and the services referred to in paragraph 3. Such contracts shall be verified by the Governement of Japan to be eligible for the Grant.

4. The Government of the United Repbulic of Tanzania 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 paragrah 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 the United Repubilc of Tanzania or its desinated 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 Governement of the ecchange bank of Japan desinated by the Government of the United Republic of Tanzania or its desinated authority (hereinafter referred to as "the Bankk").

(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 the United Republic of Tanzania or its desinated 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 Governement of Japan and to pay to the Japanese nationals who are parties to the Verfied 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 the United Republic of Tanzania or its desinated authority.

6.(1) The Govenrment of the United Republic Tanzania will take necessary measures:

(a) to secure lots of lands necessary for the construction of the Facilities and to clear the sites; 

(b) to provide facilities for distribution of electricity, water supply and drainage and other incidental facilities outside the site;

(c) to ensure prompt unloading and customs clearance at ports of disembarkation in the United Republic of Tanzania and internal transportation therein of the products purchesed under the Grant;

(d) to exempt Japanese nationals from customs duties, internal taxes and other fiscal levies which may be imposed in the United Republic of Tanzania with respect to the supply of the products and services under the Verified Contracts;

(e) to accord Japanese 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 the United Republic of Tanzania and stay therein for the performance of their works;

(f) to ensure that the Facilities constructed under the Grant be maintained and used properly and effetively for the execution of the Project.

(g) 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 purchsed under the Grant, the Government of the United Republic of the Tanzania will refrain from and free competition among the shipping and marine insurance companies.

(3) The products purchased under the Grant shall not be re-exported from the United Republic of Tanzania.

7. The two Governments will consult with each other in respect of any matter that may arise from or in connecetion 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 the Government of the United Republic of Tanzania the foregoing arrangements shall be regarded as sonstituting an agreement between the two Governments, which will enter into force on the date of Your Excellency's reply.

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

　(signed) Shintaro Sasaki 
Ambassador Extraordinary
and Plenipotentiary of Japan 
to the United Republic 
of Tanzania 

(Tanzanian Note)

　Dar es Salaam, January  17, 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 the United Republic of Tanzania 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) Daniel N. Yona 
 Minister for Finance of the United Republic of Tanzania

　His Excellency 
Mr. Shintaro Sasaki 
Ambassador Extraordinary 
and Plenipotentiary of Japan 
to the United Republic 
of Tanzania