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MEMORANDtn-I OF UNDERSTANDING
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND
THE GOVERNMENT OF CANADA
FOR THE
INDONESIA FISHERIES DEVELOPMENT PROJECT

The Government of the Republic of Indonesia and the Government of Canada,
wishing to cooperate in the Indonesia Fisheries Development Project,
have agreed to the following:

ARTICLE I

Responsible Authorities
1.

The Government of the Republic of Indonesia designates the Directorate
General of Fisheries and the Agency for Agriculture Research and
Development of the Department of Agriculture (hereinafter referred to
as "DGF/AARD") as the Institutions responsible for the implementation

of its obligations under this Memorandum.

2.

The Government of Canada designates the Canadian International Development Agency (hereinafter referred to as "CIDA") as the Agency responsible for the implementation of its obligations under thisMemorandum.

ARTICLE II

The

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1.

Project

The two parties to this Memorandum shall cooperate in the Indonesia
Fisheries Development Project, hereinafter referred to as "the
Project", as described in Annex "A" of this Memorandum.

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Objective of the Project
2.

The primary objectives of the Project are to determine and develop
the fishery resources potential of the Natuna and Sangihe areas and
to formulate pilot development projects to exploit this potential.

ARTICLE III
Execution of the Project

1.

The Government of the Republic of Indonesia and the Government of
Canada agree to complete the Project within approximately two and a
half years of the commencement of work as set out in Annexes "A",

"B", "C" and "D" of this Memorandum.

These Annexes, which constitute

an integral part of this Memorandum, provide :
(a)

a description of the background and scope of the Project;

(b)

the responsibilities and obligations of the Government of the
Republic of Indonesia and the Government of Canada; and

(c)

the terms and conditions of the financial contribution of the
Government of Canada.
Plan of Operations

2.

CIDA shall submit to DGF/AARD a document entitled "Plan of Operations"

which shall include:

a description of the Project;

schedule of the activities required to implement it;
chart;

an outline and
an organization

and a definition of the roles and responsibilities of the

Project participants.

This Plan of Operations shall be discussed and

agreed to by CIDA and DGF/AARD and shall be utilized as a working
document throughout the

3.

life of the rroject.

The participation of the Government of Canada in the Project described
in Annex "A" of this Memorandum does not commit the Government of

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Canada to participating in subsequent follow-on projects or further

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phases of the present Project.

ARTICLE IV
Financial Contribution of the Government
of the Republic of Indonesia
The Government of the Republic of Indonesia, through DGF/AARD, will bear
the cost of providing suitable counterpart personnel and the cost of the
necessary administrative assistance and local support as specified in
Annex "C" of this 1-iemorandum.
Financial Contribution of the Government of Canada
1.

The Government of Canada, through CIDA, will contribute an amount not
to exceed one million three hundred thousand Canadian dollars
($CDN 1,300,000) in untied grant funds for the purpose of providing
technical expertise and training awards, and the purchase of fishing
equipment to carry out the Project as outlined in the Plan of Operations

2.

The financial contribution of the Government of Canada will be paid
into a Trust Fund account designated by the Food and Agriculture
Organization of the United Nations (hereinafter referred to as "FAO").
Upon completion of the Project and submission of financial statements,
any uncommitted funds will be returned by FAO to the Government of
Canada .

ARTICLE V
ImplementatioE:
The two Governments and their designated agents shall ensure that this
Memorandum is carried out with due diligence and efficiency and each shall
furnish the other all such information as shall be reasonably requested.

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ARTICLE VI
Communications
Any communications or documents given, made or sent by either Government
or their designated agent pursuant to this Memorandum or Annexes hereto

shall be in writing and shall be deemed to have been duly given, made or
sent to the party to which it is addressed at the time of its delivery by
hand, mail, telex, cable or radiogram at its respective address, namely:
For Indonesia:

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For Canada:

Mailing address:
Original to :

Direktur Jenderal Perikanan
Departemen Pertanian
Jalan Salemba Raya 16
Jakarta Pusat

Cable address:

DITJENIKAN

Copy to:

Badan Penelitian dan
Pengembangan Pertanian
Pasar Minggu
Jakarta Selatan

Mailing address: The President
Canadian International Development Agency
200, Promenade du Portage
Hull, Quebec
KlA OG4
Cable address:

CIDA HULL

ARTICLE VII
Evaluation
Periodic evaluations of the Project will be carried out as agreed upon by

CIDA, DGF/AARD and FAO.

ARTICLE VIII
General Provisions
1.

This Memorandum shall become effective on the date of signature and
shall expire upon completion of the Project or on any date mutually
agreed upon by both parties .

It supersedes any previous arrangement

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concerning this Project made between the Government of the Republic of
Indonesia and the Government of Canada.
2.

This Memorandum does not constitute an international treaty .

It is

intended only to set out the administrative responsibilities of the
two Governments in relation to the implementation of this Project
within the framework of technical cooperation between the two countries.
3.

Any dispute arising out of the interpretation or implementation of this
Memorandum shall be settled amicably by consultation or negotiation
between the two Governments .

4.

This Memorandum may be amended at any time with the mutual consent of
the two parties by an Exchange of Letters .

IN WITNESS WHEREOF, the undersigned, on behalf of their respective
Governments, have signed this Memorandum.

SIGNED in Jakarta on

ｒｅｐｵｾｉｃ＠

ｆｏｒＮｾ＠

GOVERN}ffiNT OF THE
OF INDONESIA

Signed

Soedarsono Hadisapoetro
Minister of Agriculture

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in duplicate .

FOR THE GOVERNMENT OF CANADA

Signed

W. H. Montgomery
Ambassador of Canada

ANNEX A

TO THE MEMORANDUM OF UNDERSTANDING FOR THE
INDONESIA FISHERIES DEVELOPMENT PROJECT

1.0 Background to the Project
1.1

The geographical area of the Project is in the water around
the islands of Natuna in the South China Sea and Sangihe in
North Sulawesi .

These waters are thought to contain substantial

stocks of pelagic and demersal species, as well as crustacea
and molluscs.

There are already many over exploited fishing

grounds in Indonesia but these untapped island areas offer
considerable opportunities for fishermen, subject to a
confirmation of the resource potential and the establishment
of an adequate marketing network.
1 .2

As a first step to developing this potential, it is necessary
to conduct resource studies to determine the extent of important
commercial species and the most effective catching methods that
can be adapted to small and medium-sized fishing operations;
it is also necessary to determine the types of small-scale
fish farming suitable for these areas.

1.3

The Government of the Republic of Indonesia requested that CIDA
provide the services of FAO to carry out the Project in the two
specified areas and formulate a detailed proposal for further
development of demonstration projects .

2.0

Scope of the Project
2.1

The scope of the Project shall include the following:
(1)

determination of fishery resource potential of the Natuna
and Sangihe areas (by exploratory fishing, acoustic surveys,
aquaculture surveys and aquaculture trials);

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(2)

formulation of pilot development projects for the two

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Project areas .

Both pilot projects will focus on

demonstration fishing, fish farming and marketing and
will be based on the results obtained by the activities
incl uded in 2.1(1) above;
(3)

on-the-job training of Indonesian counterparts, fishermen ,
extension worker s and fish farmers throughout the course
of the Project;

(4)
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and

development of Indonesia's capability to carry out fish
resource surveys independently by institutional training
and on-the-job training of Indonesian fisheries experts .

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,-ANNEX B
TO THE ME110RANDUM OF UNDERSTANDING FOR THE
INDONESIA FISHERIES DEVELOPMENT PROJECT

1. 0

Responsibilities and Obligations of the Government of Canada

1 .1

The Government of Canada shall, through CIDA:
(1)

provide funds for the services of FAO in accordance
with Annex "D" of this Memorandum to carry out the
Project as described in the Plan of Operations;

(2)

and

review quarterly progress reports from FAO and participate on the Project Steering Committee.

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ANNEX C
TO THE MEMORANDUM OF UNDERSTANDING FOR THE
INDONESIA FISHERIES

1.0

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PROJECT

Responsibilities and Obligations of the Government of the Republic
of Indonesia
The Government of the Republic of Indonesia shall, through designated
authorities, in accordance with the existing laws and regulations of
the Republic of Indonesia:
(1)

provide all equipment, materials and supplies together with
services and labour required to complete the Project which are

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not provided by FAO or CIDA;
(2)

provide qualified Indonesian counterpart staff as required to
implement the Project;

(3)

assist in recruiting local experts and make the necessary effort
to ensure that they are assigned to the Project for the period
of time required to carry out the Project surveys related to
their field of work.

These local experts may qualify for

training awards associated with the Project;
(4)

provide, without charge, in Semarang and at the Project sites,
transportation and drivers for Project personnel while on
official Project business, such facilities being provided for
personal use as available and as agreed to with DGF/AARD;

(5)

provide, without charge, appropriate office accommodation for
the staff, in Semarang, and at both Project sites, together
with necessary furnishings (including typewriters), clerical
staff, typists, domestic telephone and postal services and
any other office facilities required to implement the Project;

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(6)

provide, without charge, an appropriate fishing vessel and
a research vessel including registration, licenses, servicing,
and a budget to cover operating costs of both vessels for
the duration of the Project;

(7)

inform the Project personnel of all laws and regulations which
may affect their work;

(8)

provide access to those parts of Indonesia as reasonably
required to enable the Project personnel to carry out their
responsibilities;

(9)

ensure that appropriate accommodation is available, at
reasonable rates, to Project personnel in Semarang and at
both Project sites;

(10) review FAO quarterly progress reports and participate on the
Project Steering Committee;
(11) establish a counterpart fund to cover the local costs incurred
in the execution of the Project.

Payments from this fund will

be made subject to approval of the Government of the Republic
of Indonesia; and
(12) participate, with CIDA and FAO, in consultations regarding the
revenues received from the sale of fish caught as a result of
Project activities.

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ANNEX D

TO THE MEMORANDill1 OF UNDERSTANDING FOR THE
INDONESIA FISHERIES DEVELOPMENT PROJECT

1.1

CIDA will provide a financial contribution to FAO to carry out the
Project activities as agreed to in the Plan of Operations.

This

Project is to be carried out under the terms and conditions of the
agreements to be signed between the Government of Canada and FAO and
between FAO and the Government of the Republic of Indonesia .
1.2

The financial contribution of the Government of Canada will be paid
into a Trust Fund account designated by FAO.

Upon completion of the

Project and submission of financial statements, any uncommitted funds
will be returned by FAO to the Government of Canada.

1.3

The Terms and Conditions of the financial contribution are:
(a)

that the Government of the Republic of Indonesia requests the
services of FAO to implement the Project;

(b)

that FAO and the Government of Canada enter into an administrative
arrangement covering the ends and purposes of this contribution;

(c)

that, subject to the agreement of CIDA, on the completion of
the Project, all equipment purchased for the Project from the
Trust Fund shall become the property of the Government of the
Republic of Indonesia;

(d)

and

that should either party to the Memorandum of Understanding
between FAO and the Government of the Republic of Indonesia
terminate the Memorandum during the lifetime of the Project
over which the Canadian contribution is allocated, this
Memorandum of Understanding between the Government of the
Republic of Indonesia and the Government of Canada shall be
subject to renegotiation.