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MEMORANDUM OF UNDERSTANDING
BETWEEN
THE GOVERNMENTS OF INDONESIA, MALAYSIA AND SINGAPORE
ON THE ONE PART
AND
THE MALACCA STRAIT COUNCIL FOR AND ON
NON GOVERNMENTAL

ASSOCIATIONS

ON

THE

BEHALF OF THE JAPANESE
OTHER

PART


FOR THE

ESTABLISHMENT AND OPERATION OF A REVOLVING FUND TO COMBAT OIL
POLLUTION FROM SHIPS IN THE STRAITS OF

MALACCA AND SINGAPORE

WHEREAS the Straits of Malacca and Singapore is a

'

major

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waterway for international navigation;
AND WHEREAS the Malacca Strait Council for and on behalf
of the Japanese Non-Governmental Associations (hereinafter
referred to as the Japanese side) is desirous of assisting the
three Coastal States of Indonesia, Malaysia and Singapore

combating oil pollution from ships and for this purpose

in
has

offered to donate to the three Coastal States ·a sum of Yen 400
million to constitute a revolving fund;
AND WHEREAS the three Coastal States have agreed to accept
the donation from the Japanese side in accordance with the undestanding set out hereunder.
Now this Memorandum records the understanding as follows
1.

The sum of Yen 400 million (hereinafter referred to as
the sum} shall constitute a revolving fund to be known
as the straits of Malacca and Singapore Revolving FUnd
(hereinafter referred to as the FUnd) to be maintained,
administered and operated in accordance with the arrangement described in the attached Annex.

The three Coastal


States may, however, accept additional sums for the Fund
from sources other than those mentioned above.

.
j

...
...

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2.

The Fund shall be maintained and operated by the three Coastal
States on a rotational basis as specified in

4

paragraph


of

the attached Annex.
3.

On the signing of this Memorandum, the

Japanese

duly transfer the Sum to an account designated

side

by the Coastal

State. first maintaining and operating the Fund for
behalf of the three Coastal States in accordance
graph 2 above.

shall

and

with

on

para-

This transfer shall take place not later than

31st March, 1981.
4.

Should any question arise which is not dealt with
Memorandum or the attached

Annex the same shall

in
be


this
resolved

by consultation among the parties.
IN WITNESS WHEREOF the representatives of the parties have hereunto
set their hands.
eleventh

Do'ne this

day

of

February

' 1981.

Signed


Signed

...................................
( for the Government of Indonesia )

Signed


セ ᄋセM

'\Ior the Government of Malaysia )

Signed
• • • • • • • • • • • • • tfl


ᄋ⦅N@

•••••••••••••••


( for the T.1ernment of Singapore )

(for the Malacca Strait
Council for and on behalf
of the Japanese Non
Governmental Associations)

..
.ANNEX

ARRANGEMENT FOR ESTABLISHMENT OF A REVOLVING FUND TO
MITIGATE OIL POLLUTION OF THE セarine@
ENVIRONMENT
IN THE STRAITS OF セNalc@
A.T\JD S INGl'.PORE

1.

PURPOSE


The purpose of the Revolving Fund is to enable jointly
or independently the Governments of Indonesiag Malaysia and
Singapore to take immediate remedial action against oil pollution
caused by s_h!Ps in the Straits of Malacca and Singapore.

2.

SCOPE OF APPLICATION
The Fund shall be used only for the specific purpose of

facilitating immediate anti-pollution operationsand shall be
utilized in the event of any incident of oil pollution caused
ships whether accidental or intentional.

3.

「セ@

QUANTUM OF FUND


The quantum of the Revolving Fund shall initially be
400.000,000 Yen contributed by the Japanese-non-governmental
associations. Its may also include any further donations from
other sources and any interest that may accrue to the Fund.

4.

ADMINISTRATION AND OPERATION

The administration and operation of the Fund shall be
undertaken by an Authority appointed by the Littoral States of
Indonesia, Malaysia and Singapore on a rotational basis in the
alphabetical orderu for a period of 5 years each.



1J

2


5.

RElOLVING FuND

5.1.

Composition

comitGセe@

There shall be a Revolving Fund Committee (hereinafter
called the Committee) constituted by one representative from
each Littoral State.

Representatives shall be Senior Officials

administratively or operationally connected or involved with
marine pollution matters.

The State responsible for the

administration and operation of the Fund shall provide the
Chairman of the

cッョセゥエ・N@

50 2.

The Power to Make Rules

5. 2 .L

The Committee shall make ru.les and regulations relating

to the carrying out of its functions and responsibilities.

5.2.2.

Without prejudice to the generality of the foregoing

provision -t-he CommH '::\'-2!e 1 s power to make rules shall include the
power to make
(i)

rules and procedures for the conduct of the business
of the Committee;

(ii)

rules relating to and procedures for the disbursement
of the Fund;

(iii)

rules relating to the meeting of the administrative
and operational cost of the Fund,

(iv)

rules relating to the periodic promulgation of
information to the Member States concerned on the status
of the Fund and the activities of the Committee.

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6

4

PROCEDURES FOR THE UTILIZATION OF THE FUND

6.1.
The Government of the Littoral State which requires
any advance from the Fund shall through its representative in
the Committee 1 submit a written application to the Chairman of
the Committee.
The written application shall contain a summary
of the incident and the amount and purposes for which the advance
is required.
6.2.
Payment of the advance by the Authority administering
the Fund shall only be effected with the written approval of
the Committee.
6.3.
Within three months of the completion of an
anti-pollution operation the recipient state shall submit a
properly authenticated statement of accounts of the advance
used to. the Committee.
6.4.
The administrative cost for the operation of the Fund
can be met from the interest earned from the Fund.

7.

REPAYMENT TO THE FUND

7.1.
Without prejudice to its right to claim compensation
for loss or damage the State that receives the advance shall
take all necessary action to recover its expenses and upon :Jreceipt

L

of any compensation money that State shall promptly first repay .
the advance taken from the Fund.
7.2.

There shall be no interest charged en the advance.

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セ@

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8.

MISCELLANEOUS PROVISIONS

8.1.
All other matters pertaining to the Fund shall be
governed in accordance with the laws of the State administering
the Fund.
The detailed procedure for the administration and
operation of the Fund shall be made known to the other two
States and the Malacca Strait Council.
8.2.
The Fund shall be audited annually and an audited
statement of accounts shall be furnished to the other two
States and the Malacca Strait Council.
000

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