Selanjutnya

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..ARltANG.cil1&'1fT B 1 T\lEEN THE GOVBHNMENT OF THE REPUBLIC

OF INDONESIA AND THE GOV.c;H.NMJ.i,'NT OF THE STATE OF
SINGAPORE FOR THE SUPPLY OF COTTON YARNS TO THE
REPUBLIC OF INDONESIA, PARTIALLY AGAINST RAW carTON
TO BE ｄｾｌｉｖｅｒｂ＠
FROM THE UNITED STATES PL 480 PROGRAMME

The Government of the Republic of Indonesia and the
Government of the State of Singapore, desiring to make arrangements
for the export of cotton yarns amounting to approximately Malayan
$ 3,420,000 from Singapore to the Republic of Indonesia, and for the
acceptance in Singapore of raw cotton of the value of U.S.$ 733,663,
in partial payment (65%) for the cotton yarns so exported (the
balance (35%) to be paid in Malayan dollars) have concluded an
arrarigement as set forth below.
This arrangement was made in the knowledge that the
Government of the United States of America have agreed to issue to
the Government of the Republic of Indonesia a purchase authorization

(hereinafter called PA) for raw cotton pursuant to Title I, United
States Public Law 480-83rd Congress (hereinafter referred to as PL
480), and have agreed that the Government of the Republic of
Indonesia may transfer, as needed, to the Government of the State
of Singapore the authority to sub-authorize the PA.

.

For the purpose of this arrangement the rate of conversion
between the

u.s.

dollar and the Malayan dollar will be: U.S.$1=

Malayan $ 3.03
I.

The Government of the State of Singapore:
A.

will facilitate the export of cotton yarns manufactured
in Singapore, at competitive prices;

B.

will arrange for the acceptance of raw cotton ma.de
available to the Government of the Republic of Indonesia
by the United States under the PL 480 in partial payment
for the FOB value of the cotton yarns exported to
importers in Indonesia under this Arrangement;

c.

will arrange for the contracting for the raw cotton
under the PA prior to 31st May, 1960 and for the
shipment prior to 30th June, 1960 with the understanding
that these terminal contracting and shipping dates may be

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extended by agreement between the Government of the
Republic of Indonesia and the Government o:f the
United States;
D.

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will arrange that the raw cotton under the PA shall
be imported under the applicable regulations of the
United States Department of Agriculture, and agree

that the raw cotton shall not be imported into Singapore
llnless respective Letters o:f Credit for cotton yarns
have been opened and further, on the understanding
that the import of raw cotton will only amount to 65%
of the FOB value of Letters of Credit so opened.
will inform the Government of the Republic of Indonesia
from time to time of the net values of shipments of
cotton yarns, of credits opened for raw cotton, and
of the net values of actual shipments of raw cotton
received;

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recognises that the raw cotton imported from the United
States of Anerica to Singapore under this arrangement
will be in addition to raw cotton that would otherwise
be imported from the United States of America and
countries friendly to the United States of America and
it will not result in increasing the availability of raw

cotton or cotton yarns to countries unfriendly to the
United States of America;

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accepts that claims in respect of deficiency in quality
or quantity of cotton yarns shall be settled by
negotiations between exporters in Singapore and importers
in Indonesia in accordance with normal commercial practice,
and that any deficiency in qnali ｴｾＬｲ＠
and quantity will be
made good by additional supplies of cotton yarns, or,
failing .which, by remittance in Malayan dollars in favour
of importers in Indonesia.

H. (1.) if,. after one month from the date of transfer of the
authority to sub-authorise the PA for raw cotton, commercial

contracts for the supply of cotton yarns have not been
ccnaluded between Singapore exporters and Indonesian

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importers to a minimnm of MalavR.n $ 1. 000, 000, accepts
thatthe Government of the Republic of Indonesia may
after informing the Government of the State of Singapore,
be released from its undertaking under Paragraph II B
below in respect of the balance of the total specified
in that paragraph;
(2) In the event that the Government of the Republi c
of Indonesia is prepared to suspend its right under
the preceding sub-paragraph for an additional period
of one month, accepts that the Government of the Republic
of Indonesia may specify a further minimum value of

contracts which shall be concluded within the additional
one month.
II.

The Government of the Republic of Indonesia:-

A. will transfer to the Government of the State of Singapore
the authority to sub-authorize the PA for raw cotton
equivalent to the value of U.s.$ 733, 663-, as soon as
possible after the Government of the Republic of Indonesia
has received the PA;
B. will arrange for the import of cotton yarns from Singapore
and will issue licences and/or make allocations to importers
in Indonesia as soon as possible after the coming into
effect of this Arrangement, provided that sixty-five (65)
percent of the total FOB value of the exported cotton yarns
shall be equivalent to u.s.$ 733,663 worth of raw cotton.
Such licences shall be valid only for Singapore and
shall be distinguished - from ordinary import authorizations
by notation: "For P.L.480 Transactions only" . •

The import licences and/or allocations shall be valid until
30th June 1960 but this date may be extended pari passu
with the terminal dates for the contracting for, and
shipment of, raw cotton from the United States mentioned
in paragraph IC above ;
C• will arrange that importers in Indonesia of co.t ton yarns
complete their purchase contracts with exporters in
Singapore as expeditiously as possible, and will arrange

- 4 that such purchase contre,cts call for a shipment date
as early as possible and mutually convAnient;
D.

will solely be responsible for the deposit to the account
of the Government ｯｾ＠
the United States of America of the
Rupiah equivalent of U.S. dollar disbursement as required
under the P.L.480 Agreement between the Governments of
the Republic of Indonesia and the United States ·of America
and und er the P.A.

E.

will recomend to the Government of the United States of
America a reasonable extension of the P.A. in the event
that the fulfilment of the arrangement as mentioned in
paragraph IC above is prevented by some occurrence, as
there are: railway and natural catastrophies, fire,
explosions, strike, lock-out, war, riot, civil commotion
as well as other events which will generally be recognised
as cases of "force majeur", over which the Government of .
the State of Singapore has no control;

F.

recognises that the cotton yarns imported :from Singapore
to Indonesia under this arrangement will be in addition
to the cotton yarns that would otherwise be imported from
the United States of America and countries friendly to the
United States of America.

III.

General Stipulations
A.

Any residual amount of sub-a uthorization a gainst the PA
in the neighbourhood of u.S. $1,000 after taking into
account adjustment refunds made, for which the Urtited
States cannot reasonably be expected to make shipment,
shall be settled, without delay, by the Government of
the Republic of Indonesia to the :foreign exchange bank
of Singapore in cash.

B. commercial contracts for the delivery of the cotton yarns
shall be made on terms to be nee;otiated between exporters
in Singa pore and i mporters in Indon esia.

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Done in duplicate, in the English language, at
Djakarta, this ･ｩｧｨｾｮｴ＠
day of November, 1959.-

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For the Government of the
Republic of Indonesia:

Signed

!

( 's 11

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0 N 0 )

Acting Secretary-General,
Department of Foreign Affairs.

For the Government of the
ｓｴ｡ｾ＠
Singapore:

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Signed
(ABU BAUrff BIN PAWANCHEE)
?ermanent Secretary,
Commerce & Industry Division,
Ministry of Finance.

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PROCEDURE
A. For cotton yarns thet will be imported by the
Republic of Indonesia
ｬｾ＠

The Government of the Republic of Indonesia wl 11 1 ssue
import licences and/or make allocations to its importers
for the FOB value of the cotton yarns.

Ｒｾ＠

Importers in Indonesia wl 11 place orders for the cotton
yarns with exporters in Singapore and open Malayan dollars
irrevocable sight L9tters of Credit in favour of exporters
in Singapore to aover the purchases • .All contract prices
shall be expressed in Malayan dollars. The Malayan dollars
irrevocable sight Letters of Credit w111 be opened
immediately after conclusion of the relevant contract and
advised through the foreign exchange bank of Singapore.

Ｓ ﾷ ｾ＠

EJtPorters in Singapore wi 11 ship the cotton yarns and draw
drafta against the Malayan dollars irrevocable sight L9ttera
of Credit.
Tbe drafts shall be drawn separately (a) for manufacturing
charges expressed in Malayan dollars representing the aum

ot thirty-fl ve ( 35) percent ef the contract prices for
exported cotton yarns, and (b) for raw cotton in partial
payment for exported cotton yarns expressed in Malayan
dollars representing the sum of sixty-five (65) percent
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Ｔｾ＠

of the contract prices for exported cotton
The foreign exchange bank of

ｓｩｾ｡ｰｯｲ･＠

ｹ｡ｲｮｳｾ＠

will negotiate

draf'ts drawn by the exporters.

5.; The t'oreign exchange bank of Singapore will forward the
drafts and relevant documents to the foreign exchange
bank of
ｉｮ､ｯ･ｳｩ｡ｾ＠

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6. The :t'oreign exchange bank o:r Indonesia wi 11 make reimbursement
to the :t'oreign exchange bank o:r Singapore in Malayan dollars
:t'or the sum o:r draf'ts :t'or manu:t'acturing charges, the amount
o:r which corresponds to that as stipulated in paragraph 3(a)
in this Procedure, and credit the sum o:r drafts for raw cotton
in partial payment for exported cotton yarns, the amount of
which corresponds to that as stipulated in paragraph 3(b) of
this Procedure, to the Malayan dollar Escrow Account in the
name of the foreign exchange bank of Singapore.

7• The amounts in the Malayan dollar Escrow Account

wi 11 be

debited only in accordance with the terms stipulated in the
paragraph B.8.(i).
ｂｾ＠

For the United States raw cotton that will be imported
by Singapore

1. The United States Department of Agriculture
(Commodity Credit Corporation) wi 11 issue Letters of
Commitment to the United States bank nominated by the
foreign exchange bank of Indonesia in respect of the

u.s.

dollar Letters o:r Credit to be opened under the PA by the
foreign exchange bank of Singapore.
2. Importers in Singapore will place orders for the raw cotton
with exporters in the United States.

3. The :t'oreign exchange bank o:r Singapore will open u.s. dollar
Letters o:r Credit in i'avour of the raw cotton exporters and
advise them through the United States bank holding Letters o:r
Comm! tm.ent which have been issued.

4.

Exporters in the United States wi 11 ship the raw cotton and
draw dra:t'ts against the u.s. dollar Letters o:r Credit.
The Uni.tad States bank wi 11 negotiate the draf'ts and pay

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- 3exporters in the United States in

u.s.

dollars and will forward

documents of title to the .foreign exchange bank of Singapore.

6. The United States Department of Agriculture (Commodity Credit
Corporation) will make reimbursement for the payment by the

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United States bank.

7.
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The United States bank will notify the foreign exchange bank of
Indonesia and request it to deposit an equivalent amount of .
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Rupiah to the Special United States Account, and the foreign
exchange bank of Singapore will confirm.

8. The foreign exchange bank of Indonesia

wi 11

( i ) debit the Malayan dollar Escrow Account in the name of

u.s.

the foreign exchange bank of Singapore the amounts of the

u.s.$

dollar drafts; (at the rate of exchange

1 = Malayan

$ 3.03 )
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(ii ) credit the Special United States Government Account with
appropriate amounts of Rupiahs.

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9. ( 1 ) the foreign exchange bank_of Singapore
to importers of raw cotton of all

u.s.

wi 11 make payment

dollar sums remitted

by the United States shippers in respect of shipments deficient
in quall ty or quantity (or in respect of other claims as
specified in the

ｐａＩｾ＠

( ii ) The United States bank will report to the Commodity

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Credit Corporation at the end of each calendar quarter the total
amount of such U.s. dollar sums remitted during the quarters.
(iii ) On demand by the United States bank, the foreign

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exchange bank of Singapore wi 11 pay to the United States bank
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.for the account of Comm.odi ty Credit Corporation a sum in
dollars equal to the total amount of the
remitted during the

u.s.

u.s.

dollars sums

ｱｵ｡ｲｴ･ｾ＠

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(iv')

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On receipt of the

ｵｾｳＮ＠

dollar payment from the foreign

exchange bank of Singapore the United States Department of
Agriculture w.l.11 issue a P.l for raw cotton to the same

u.s.

dollar value to the Government of the Republic of Indonesia
who 'Wi 11 as soon as possible transfer all author! ty

to sub-

authori se it to the Government of the State of Singapore. This
P.A w.l.11 authorise replacement of cotton w.l.thout a deposit in
local currency, and United States Department of .Agriculture
would look to Singapore for settlement of any claims which

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might arise under the refund PA. Only ninety-five (95) percent
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of the invoice value will be financed under the refund PA.

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