Selanjutnya

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Tfie bvemment e2 the Rapubl ic'of Iadones i a and the

J%ovemment bf Japan

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daeilin& t a make a m g e m n t s f o r the

Japan t o the
Republic
of ~ o & s f a , ani far tb aoce@.anc'e i n Jaian
. . of .
e m @ oB cotton t e x t f l e a

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d/&r yarns. from

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raw cotson of t h e vdue of U.9, dollars 10,500,000 in
parCiaJ-paymnt foi* tbe cottsn textiles and/o~yarns so
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gz@exp&

1 . *,4&&etk
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($he b a l w r t t o be paid i n stjarling) haoc concluded

as set forth below,

c

This"kmngement was niads in the knowledge that the

GQW-mc

& the Uhitea States of

&erica have agreed ta

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rik

af a s t u q shipment of a w ,

B-

cow3an;

0. (1) i f , a f t e r one aonth f rt%nthe date of t r a n s f e r of &e
autho-rity t o sub-auf;horine the PA f o r raw iotton, coaamereial contracts f o r the supply of cotton t e x t i l e s
and/or yarns have not been concluded' between Japanese
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exporters and Xqlvnesian importars t o a minimum ,of
ae,cepts t h a t t h e Bowrrnnent of the Re

fi,800,00,

of
,

~ o n e s i may,,
a
a f t e r informing t h e EoVerment of

Japan, be released -f&m i t s u d e r t a k i n g under Parag
I1.B.

belm in respeet

of

t h e balance of the t o t a l

p e eif ied fn t h a t paragraph;
( 2 ) b the event t h a t t h e t;overnnmqt of the B6

t.o suspend its right under t h e

Iadonesda i s prepared

preci=ding sub-paragrapti f o r an aa:ditfonal pefiod of

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one nronth, accepts t h a t the Government of the mpubfic
,

.,

of kdonesia my specify a further ininimwn value 6f
e o n t r a c ~ swhit& sha3.1. be concluded within the additional
-

one month;

H. recrsgniaes t h a t the raw cotton imported from the United

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States of dmerioa t o Japm under t h i s Arrangem

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be i n addition .to raw cotton t h a t would otherwise be
,

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imporfed from the United States of hmrica and countri
f z b n d l g . t o the United s t a t e s of America.

11. The Government o f the Republic
of k d anes3.a
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A. will transfer t o t h e Government of Japan the authsri+iy

t o sub-authorize t h e PA f o r raw m t t o n equivalent t o
the d u e of

U. S. dollare .LO., fia);'000 as soon as the

Government of tibe Republic of M onesia w i l l . have
received the PA;

B. w i l l m a n g e f o r t h e import d cotton t e x t i l e a and/or
y~rnsf m m Jap m and will i . u e I i c n e e s and/or n l c e

allocations t o importers i n b d i n e a i a as soon as

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POSdble a f t e r t h e cclming, i n t o effect of this Arrangement

p o d d e d that ( 5 5 ) p ) r c n t of t h e t o t & FOB v a e of
the exported cotton textus andfir ( 6 5 ) percent aP the

t-el

FOB value af the exported cotton y a m shall be

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cotton.
Suoh liacnces s h a l l be valid only i n J a p a and

&all be distin@ighed. from or&nary ireport mthorizat-

imm by the notat ion: "For PL 480 Transqotions enlyn.

The import licence@and/or thlocrations s h a l l be

valid u n t i l September 30, 196ds but t h i s date may be-

extended

passu with t h e terminal dates f o r the

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8.

contracting f o r , a d shipment of raw cotton frem
t h e United S t a t e s mentianed i n paragraph I.C. above;

C. dl1 arrange that importers i n I n d ~ n e s i aof cotton
t e x t i l e s and/or yarns coaplete t h e i r purchase
hentracts with exporters i n Japan as expeditiously

as possible, and w i l l arrange t h a t such purchase
centracts call f o r a shipgent date as e a r l y as is

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it
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possible and mt ually convenient;

D. w i l l s o l e l y be responsible f o r t h e deposit t o tihe

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account of t h e Government of the United S t a t e s o f
W r i c a of the Rupiah equivalent of U.S.

d o l l a r dis-

bursellrent as required under the PL 480 Agrewent

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between t h e Governments of t h e Bepublic of Indorresia

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aad of the United S t a t e s of America and under t h e PA;
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C

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& w i l l recolmmend t o t h e Govelr~mentof t h e United S t a t e s

of America a reasonable extension of t h e PA, i n the
event t h a t fulfilment of t h e arrangement as mentioned

i n paragraph I.C,

.I.

is prevented by some occurrence

1.

over which the G o ~ ~ r n m e of
n t Japan has no control;
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8.

F. recogniws t h a t t h e cotton t e x t i l e s and/or yarns
lmpor$ed from Japan t o h d o n e s i a under

this Arrange-

ment w i l l be i n addition t o the cotton t e x t i l e s

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and/or yarns t h a t would otherwise be imported from the
United S t a t e s of b r i c a and other countries f r i e n d l y
t o the United S t a t e s of h l l c a .
r

111,

General s t i p u l a t i o n s

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& Any resfdual amount of sub- authorization against t h e
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PA in the neighbourho od of $ 1,000 after takin e: into

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account adjustment refunds made, for wh±h

the United

State s can not reasonably be expecte d to make shipment ,
shall be s ettled, without delay, by the Government of
the Republic of Ind om s ia to the foreitJl exchanee bank
of J apan i n sterling cash.

B. Commercial contracts for the delivery of the cotton

1:

textiles and/or yarns shall be made on terms to be
negotiated between exporters in J apan and i mporters in
Indonesia .

c.

The annexed Procedure shall be re garded as a part of
this Arran gement .

IN WTINESS WHEREOF, the undersigned , being duly authorized ,

have sit,ned the present Arrancement .
DONE in duplicate , i n the English lane;uage, at Djakarta,

this

twe nt y-nint h

day of December,

For the Government of the
Republic of Irxi onesia:

Signed

1959.

For the Government of
Japan:

Signed

I

R. SOEWrro KOESOEMOWIDAGDO

Secretary-General,
Departroont of Foreign Affairs.

,,

TAKIO ODA
Ambas sador Extraordina ry
and Plenipotentiary.

P R O C B D U R E

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For cottofi textiles and/or yarns t h a t ~ ~ ~ ~ . u p o r t e d

A.

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!he Government of the Republic of M o n e s i a

w i l l issue

import licences and/or nmke a l l o c a t i o n s t o its importers
8

f o r the FOB value of the cotton t e x t i l e s and/or yarns.
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-porters

2.

11

i n Indmesia will place orders f o r the cotton

t e x t i l e s and/or yarns with exporters i n Japan and open

11

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a t e r l i n g irrevocable si&t L e t t e r s of Credit i n favour

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of exporters i n Japen t o cover the purchases. A l l c o n t r a B
prices s h a l l be expressed i n s t e r l i n g . The s t e r l i n g irrevocable s i g h t L e t t e r s of Credit w i l l be opened immediately
a f O e r conclusion of the relevant contract and advised

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through the foreign exchauge bank of Japan.

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Exporters in Japan w i l l s h i p t h e cotton t e x t i l e s and/or
"

yarns and draw d r a f t s against the s t e r l i n g irrevocable
s i g h t L e t t e r s of C r e d i t . The d r a f t s s b l l be drawn se~ r a t e l y(a) f o r manufactudng charge

expressed i n

s t e r l i w representing respectively t h e sum of (35

per- -

eent of t h e contract prices f o r exported cotton yarns
and/or t h e sum of (45) percent of t h e contract p r i c e s
f o r exported cotton t e x t i l e s , and (b) f o r raw cotton*

in partial payment f o r exported cotton t e x t i l e s and/or'
yarns emressed i n s t e r l i n g representing respectively
t h e a m of (65) percent of t h e contract prices f o r
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exported cotton yarns and/or th.e sum of (55) percent o f
t h e centract prices f o r exported cotton t e x t i l e s .

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4.

The f a r e i g n exchange bank of Japan w i l l negotiate
d r a f t s drawn by the exporters.

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5.

The foreign exchange bank of Japan w i l l forward tb
drafts and r e l e v a n t documents t o t h e f o r e i g n exchange

bank of Indanesia.

6.

The foreign exchange bank of Indanesia w i l l make re-

I1

s t e r l i n g f o r tke q u a o f d r a f t s f o r manufacturing charges,

I1

the mount of which corresponds t o t h a t as s t i p u l a t e d in

1

imbursement t o the foreign exchange bank of Japan in

paragraph 3.

(a) in t h i s Procedure, and c r e d i t the sum of

drafts f o r raw cotton i n partial payment Tor exported

in t h i s Procedure, t o t h e S t e r l i n g %crew Account .lnthe

7.

'?he s t e r l i n g anmmts in t h e S t e r l h g Eacrarw ~ c c o m w
t ill

in paragrag& B. 8. (i).
.. . . . . ..
. ....

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The United States Department of & r i c u l t u r e (Caamodfty
Credit Corporationj w i l l i s s u e Lel;ters af Golimdtment t o

bank of Indonesia' in respect o f t h e d o l l a r Letters of
Credit t o be opened under the PA by t h e

for&

exchange

bank of Japan.

.

b

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Impok.t;ers i n Japan w i l l place orders f o r t h e raw cottoa,

2.

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with exporters i n t h e United States.

3.

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btters of C r e d i t i n f a v m r of t h e r a w cotton exporters
and adgise them through the United States bank holding
l e t t e r s of C
7.

4.

8

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The f o m i g ~
exchange bank of Jqaa w i l l apen d o l l a r

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~ issued.
n t

Exporters Sn the Unlted S t a t e s w i l l s h i p the r a w c o t t o n

and draw drafts against the ' d o l l m Letters of Credit,

5.

The United Statesbankw921negotiate t h e d r a f t s a d pay
exportem i a t h e United S t a t e s i n dollars and w i l l forwar
docuiaents of t i t l e t o the f o m i g u exchange bank of Japan

6.

The Unkted States Department of ~ g s i c u l t u r e(Commodity
Credit Corporation) w i l l make reimbursement f o r the
payment by t h e United States bank.

7.
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'ShePni~dStat~bankwillnotifytbeforeignexchangar

bank of Indonesia arnd replest it t o deposit an equivalent
'

mount of Rupiah

td t h e

Special United States Account,

and the f o m i g n exchange bank of Japan will confirm.

$

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( i ) debit; the 6 t e r l i n g '&craw Account. i n t h e name of
the Pweign exchange bear& of Japan the amounts of
the d o l l a r d r a f t s at the rate of exchange 1 pound
s t e r l i n g = 2.8 U.S.

dollars,

( i i ) c r e d i t tb Special United States Gownunent Acc0un.t;
with appropriate amounts of fbpiah*
( i ) The foreiga exchange bank of Japan w i l l

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The fomigu exchange be* of Indonesia w i l l

Pay-

d t t e d by %he United States shippers in respect

Of

s

the quarter.
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(iii)On demand by the United States bank t h e f o r e i s
" &change bank of Japan w i l l pay t o the United Statea

bank f o r the account of Comodity Credit Corporation

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.'F a sum in dollars equal t o the Cotal amount of thea,
~

-change

b@

of Japan, United Stqtes Department, o f

authority to sub-authori~e it t o the Government of

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December

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29, 1959.

w,= -4
Exaellency,

I have t h e honour t o r e f e r t o our negotiations
leading up t o t h e signing of t h e .brangement betw
Govermnt of Japan a @ t h e Government; of t h e Republic '

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of Iadonesia f o r t h e Supply af Cottm Textiles and/or

Yarns t o t h e .Bepublie of Indonesia, p a r t i a l l y against

.'

Raw Cotton t o be delivered from the United S t a t e s of
Arnerica under the United S t a t e s PL 180 Programme csn t h i s
day, and t o confiw, on behalf of t h e Govermment o f

8.

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Japan, t h e following understanding reached during t h e

.

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course of the negotiations.
I. The Government of t h e RepubZic of Indoneah

an objection t o t h e formation of t r a d e

will not

,'

bodies by the exportem i n Japan in conrre&ion with tbq .

-

exportation of cotton t e k i l e s and/or yarns under th&a

brrangement.
X
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with f i f e i a c e t o II.E.

of t h e ~ r r a n g e m n t ,

% m e occurrencs Dver which t h e Gove-ent

lb&-ou%, war, r i o t , c i v i l csmotion as w e l l as other
even%s which w i l l generally ke recogniaed as cases o f

;. .-.

H i s Excellency
.
R. S o m i t o &esoenaridagdo
Secretary-General
Department of ~ o r e i g i~ f a i r s- .

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catastmphes, f i r e , explosion, strikeC

force rqjeure.

8

of Japan has ..

n o contmln s h a l l be deemed t o r e f e r t o such events as

railway and nat&

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XU. Tha foreign oxchango bunk of

&na@ng* bank of Indonesia muntionod i n tha Procadurn of

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t he siid h~rsang&nt arc the Bankc of Tokyo, Oscrka isnd the
'

TndcmeaLa,, Djakarta, r o ~ p c + t i s c l ~ .

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fV. In case there should bo an incrcaau i n the t o t d .
pirw

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cotton whioh i s iwrimg~dby the Govommunt

ro'an.trios under

th6

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Japan
aid the foreign
.
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PL 480 Agmmant with the Unit&

[n&.msip.ugrees eo r&.w& 75.per~fin%
ef the &cr~&:aod
. ,
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amun%
~~. .
at 'raw :@gtton
.
for Japan.

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