Selanjutnya
PROTOCOL
on the agreement concerning pending
financial matters concluded between
the Government of the Republic of
Indonesia and the Government of the
Hungarian People's Republic
Representatives of the Government of
the Republic of Indonesia /hereinafter referred to
as the Indonesian Party/ and the Government of the
Hungarian People's Republic /hereinafter referred
to as the Hungarian Party/ after having exchanged
credentials found in good order, carried on negotiations
from the 11th to the 16th September 1967 in Budapest.
In the course of the negotiations the Indonesian Party
declared that it attaches importance to the fulfilment
of the payment obligations dealt with in the present
Protocol and assumes responsibility for their fulfilment.
At the request of the Indonesian Party, the Hungarian
Party agreed to the rescheduling of the said payment
obligations. As a result of the negotiations the
following agreement has been reached:
ｾｨ･＠
Article 1
A/
Both Parties stated that the Indonesian firms
and other legal persons have outstanding payment
obligations to Hungarian firms guaranteed or secured
I
I
- 2 -
by the Bank Negara Indonesia, in the total value of
approx. US ｾ＠ 13 . 6 million out of which the short-term
obligations amount to approx. US $ 3.4 million and
the long- term obligations to approx. US ｾ＠ 10.2 million ,
which obligations originate from goods delivered and
services rendered to Indonesian firms . The above amounts
are subject to final reconciliation by the Bank Negara
Indonesia and the National Bank of Hungary to be carried
out within 60 days from the date of signing of the
present Protocol .
Bl
II
II
II
Ii
,:
Both Parties agreed that apart from the obligations
as stated in Para . A/ under a valid contract concluded
between the respective Indonesian and Hungarian firms
45 railway carriages and spare parts are to be delivered ,
the countervalue of which amounting to approx. US ｾ＠ 2 . 7
million will be settled in the frame of the arrangement
provided for in Article 2 of the present Protocol .
C/
Further the Parties agreed that under a valid
contract between the respective Indonesian and Hungarian
firms the delivery for completion of a bulb glass factory
is pending with the countervalue amounting to approx .
US $ 140 . 000 which will also be settled in the frame
of the arrangement provided for in Article 2 of the
present Protocol . It has been agreed, however, that the
Indonesian Party may exclude from the frame of the
present arrangement the settlement of this amount, subject
to written notification to this effect to be received
by the Hungarian Party within 60 days from the date of
signing of the present Protocol.
I
- 3Article 2
Both Parties agreed that the Bank Negara Indonesia
undertakes to fulfil in its own name the payment obligations
as mentioned in Article 1, according to the following
I
terms and conditions:
Al
11 The total amount of the Indonesian firms '
short-term obligations referred to in Para. 'Al
of Article 1 will be divided into two parts in
proportion of 113 to 213 . The part of 113 shall
be paid together with interests on the date of
the 30th September 1968. The part of 213 together
with interests shall be paid on the date of the
30th September 1969.
21 The interests will be calculated at the
rate of 4 per cent p.a. on the amount of 95 %
of the outstanding short-term obligations as
from the date of their maturity up to the date
of 30th September 1968 and 30th September 1969
respectively.
Bl
The long-term obligations referred to in Para.
Al, Bl and Cl of Article 1 making totally
approx. US ｾ＠ 13 million shall be settled as
follows:
ll The amount to cover 20 per cent of Part B
of the railway carriage contract concluded
between the Hungarian Railway Carriage and
Machine Works and the Department of Land
Communication of the Republic of Indonesia
II
- 4 I
will be paid from the Indonesian export proceeds
not yet transferred by the National Bank of
Hungary . The payment relating to the 38 carriages
and spare parts already delivered is to be
effected on the date of the enteri ng into force
of the present Protocol. The payment relating
to the 45 carriages and spare parts to be
delivered is to be effected on the dates of
their shipments.
2/
The remaining part of the Indonesian export
proceeds not yet transferred by the National Bank
of Hungary to Indonesia and the interest as per
Article 6 will be utilised by the National Bank
of Hungary to reduce the principal amount of
outstanding long-term obligat ions.
3/
The remaining principal aillount of the long- term
obligations mentioned in Para. A/ , Bf and C/ of
Article 1, and the capitalized interest as
mentioned in sub-para. 5/ bel ow will be divided
into six parts payable according to the following
progressive schedule:
12 . 5%
12 . 5%
15%
20%
20%
20%
of
of
of
of
of
of
the
the
the
the
the
the
respective
respective
respective
respective
respective
respective
amount
amount
amount
amount
amount
amount
30th
30th
30th
30th
30th
30th
June
June
June
June
June
June
1970
1971
1972
1973
1974
1975
4/
The interest on the long- term obligations up
to the date of 30th June 1970 will be calculated
at the rate and according to the stipulations of
the respective individual contracts .
- 5 5/ The interests accrued up to the date of 30th
June 1970 will be capitalized and paid according to
the schedule of sub-para. 3.
6/ From 30th June 1970 up to 30th June 1975 the
still outstanding amounts of principals and
capitalized interests will bear an interest of
4 per cent per annum which shall be paid yearly
together with the due instalments.
Article 3
In order to secure the payments according to
Article 2 , the Bank Negara Indonesia will issue
promissory notes within 45 days after the entering
into force of the present Protocol, undertaking
payments in its own name to the National Bank of
Hungary.
All promissory notes will be issued in US $.
Payment obligations covered by these promissory notes
and outstanding in currencies other than US $ shall
be converted into US $ at the IMF parity rat es of
the currencies concerned prevailing at the date of
the issue of the promissory notes.
These promissory notes shall comply with the
legal requirements of the Indonesian law regarding
Bills of Exchange.
In fulf ilment of the payments of these promissory
notes at their maturity dates the Bank Negara Indonesia
shall put at the disposal of the National Bank of
Hungary the respective amounts at a correspondent bank
- 6 -
of the National Bank of Hungary to be designated by
the latter.
The receipt of these promissory notes by the
National Bank of Hungary will release the Bank
Negara Indonesia from its former payment obligations.
The drafts and other documents securing the previous
payment obligations of the Bank Negara Indonesia
will be substituted by the aforementioned promissory
notes.
Article 4
Should the official par value of the US dollar
to the fine gold /being at present 1 US $ equal to
0.888671 gram fine gold/ be modified before the
maturity dates of the outstanding promissory notes,
the amount of these promissory notes will be
proportionately adjusted and replaced by the Bank
Negara Indonesia for new ones the amounts of which
shall represent the same gold value as the old ones
were representing as before the change in the official
par value of the US $ to the fine gold.
Article 5
A Banking Arrangement for the implementation
of the provisions of the present Protocol will be
concluded between the Bank Negara Indonesia and the
National Bank of Hungary within 30 days from the
entering into force of the present Protocol. The
Republic of Indonesia guarantees herewith the transfers
on the maturity dates of the amounts due in accordance
with the agreement contained in the present Protocol
- 7 and in accordance with the Banking Arrangement
to be made for its implementation and also guarantees
to grant the necessary licences.
Article 6
The Indonesian export proceeds not yet
transferred to Indonesia by the National Bank of
Hungary and to be utilised in accordance with
Article 2 will bear interest at the rate of
4 per cent p . a . as from the date when they became
due for payment up to the dates when payments
according to Article 2 , Para . Bl shall be
effected.
Article 7
The present Protocol does not cover the
existing contracts relating to the fluorescent
tube factory and the welding electrode factory ,
implementation of which has so far not been
effected by the respective Hungarian firms on
account of non-fulfilment of payment obligations
by the respective Indonesian firms .
Article 8
The present Protocol shall enter into force
after the approval of the Government of both
Contracting Parties . Th e Parties will immediately
11
- 8 I
notify each other about the approval.
"
DONE and signed in Budapest on the 16th of
September 1967 in two originals in English language,
both texts being equally authentic.
..
FOR THE GOVERN1VIENT OF
THE REPUBLIC OF INDONESIA
Signed
/Ismael M. Thajeb/
II
II
FOR THE GOVERNMENT OF THE
IDJNGARIAN PEOPLE'S REPUBLIC
Signed
/Dr. Bela Szalai/
I hereby certify that the Government of the
Hungarian People's Republic has authorized
Dr . Be la SZALAI, Deputy Minister of Foreign
Trade , to ac t on behalf of the Hungarian Party
i n the course of the economic negotiat i ons
between the Hungarian People ' s Republic and
the Republic of Indonesia, as ·well as to sign
in the name of the Government of the Hungarian
People's Republic the agreement to be concluded
as a result of the negotiations .
Budapest, 8th September , 1967.
I Peter M6D /
First Deputy Minister
of Foreign Affa irs
of the Hungarian People's Republic
'11a.."'lusitom, ho y a I1a yar Nepkoztarsas ;,:) Ko,..·m..mya felho..talmazta Dr . u:6ALAI B0 la Ｚ･ｾＱｬｫ｣＠
eol{ede lr.i mini...,zterllel ｾＭ･ｴｳ＠
urat , no y
on the agreement concerning pending
financial matters concluded between
the Government of the Republic of
Indonesia and the Government of the
Hungarian People's Republic
Representatives of the Government of
the Republic of Indonesia /hereinafter referred to
as the Indonesian Party/ and the Government of the
Hungarian People's Republic /hereinafter referred
to as the Hungarian Party/ after having exchanged
credentials found in good order, carried on negotiations
from the 11th to the 16th September 1967 in Budapest.
In the course of the negotiations the Indonesian Party
declared that it attaches importance to the fulfilment
of the payment obligations dealt with in the present
Protocol and assumes responsibility for their fulfilment.
At the request of the Indonesian Party, the Hungarian
Party agreed to the rescheduling of the said payment
obligations. As a result of the negotiations the
following agreement has been reached:
ｾｨ･＠
Article 1
A/
Both Parties stated that the Indonesian firms
and other legal persons have outstanding payment
obligations to Hungarian firms guaranteed or secured
I
I
- 2 -
by the Bank Negara Indonesia, in the total value of
approx. US ｾ＠ 13 . 6 million out of which the short-term
obligations amount to approx. US $ 3.4 million and
the long- term obligations to approx. US ｾ＠ 10.2 million ,
which obligations originate from goods delivered and
services rendered to Indonesian firms . The above amounts
are subject to final reconciliation by the Bank Negara
Indonesia and the National Bank of Hungary to be carried
out within 60 days from the date of signing of the
present Protocol .
Bl
II
II
II
Ii
,:
Both Parties agreed that apart from the obligations
as stated in Para . A/ under a valid contract concluded
between the respective Indonesian and Hungarian firms
45 railway carriages and spare parts are to be delivered ,
the countervalue of which amounting to approx. US ｾ＠ 2 . 7
million will be settled in the frame of the arrangement
provided for in Article 2 of the present Protocol .
C/
Further the Parties agreed that under a valid
contract between the respective Indonesian and Hungarian
firms the delivery for completion of a bulb glass factory
is pending with the countervalue amounting to approx .
US $ 140 . 000 which will also be settled in the frame
of the arrangement provided for in Article 2 of the
present Protocol . It has been agreed, however, that the
Indonesian Party may exclude from the frame of the
present arrangement the settlement of this amount, subject
to written notification to this effect to be received
by the Hungarian Party within 60 days from the date of
signing of the present Protocol.
I
- 3Article 2
Both Parties agreed that the Bank Negara Indonesia
undertakes to fulfil in its own name the payment obligations
as mentioned in Article 1, according to the following
I
terms and conditions:
Al
11 The total amount of the Indonesian firms '
short-term obligations referred to in Para. 'Al
of Article 1 will be divided into two parts in
proportion of 113 to 213 . The part of 113 shall
be paid together with interests on the date of
the 30th September 1968. The part of 213 together
with interests shall be paid on the date of the
30th September 1969.
21 The interests will be calculated at the
rate of 4 per cent p.a. on the amount of 95 %
of the outstanding short-term obligations as
from the date of their maturity up to the date
of 30th September 1968 and 30th September 1969
respectively.
Bl
The long-term obligations referred to in Para.
Al, Bl and Cl of Article 1 making totally
approx. US ｾ＠ 13 million shall be settled as
follows:
ll The amount to cover 20 per cent of Part B
of the railway carriage contract concluded
between the Hungarian Railway Carriage and
Machine Works and the Department of Land
Communication of the Republic of Indonesia
II
- 4 I
will be paid from the Indonesian export proceeds
not yet transferred by the National Bank of
Hungary . The payment relating to the 38 carriages
and spare parts already delivered is to be
effected on the date of the enteri ng into force
of the present Protocol. The payment relating
to the 45 carriages and spare parts to be
delivered is to be effected on the dates of
their shipments.
2/
The remaining part of the Indonesian export
proceeds not yet transferred by the National Bank
of Hungary to Indonesia and the interest as per
Article 6 will be utilised by the National Bank
of Hungary to reduce the principal amount of
outstanding long-term obligat ions.
3/
The remaining principal aillount of the long- term
obligations mentioned in Para. A/ , Bf and C/ of
Article 1, and the capitalized interest as
mentioned in sub-para. 5/ bel ow will be divided
into six parts payable according to the following
progressive schedule:
12 . 5%
12 . 5%
15%
20%
20%
20%
of
of
of
of
of
of
the
the
the
the
the
the
respective
respective
respective
respective
respective
respective
amount
amount
amount
amount
amount
amount
30th
30th
30th
30th
30th
30th
June
June
June
June
June
June
1970
1971
1972
1973
1974
1975
4/
The interest on the long- term obligations up
to the date of 30th June 1970 will be calculated
at the rate and according to the stipulations of
the respective individual contracts .
- 5 5/ The interests accrued up to the date of 30th
June 1970 will be capitalized and paid according to
the schedule of sub-para. 3.
6/ From 30th June 1970 up to 30th June 1975 the
still outstanding amounts of principals and
capitalized interests will bear an interest of
4 per cent per annum which shall be paid yearly
together with the due instalments.
Article 3
In order to secure the payments according to
Article 2 , the Bank Negara Indonesia will issue
promissory notes within 45 days after the entering
into force of the present Protocol, undertaking
payments in its own name to the National Bank of
Hungary.
All promissory notes will be issued in US $.
Payment obligations covered by these promissory notes
and outstanding in currencies other than US $ shall
be converted into US $ at the IMF parity rat es of
the currencies concerned prevailing at the date of
the issue of the promissory notes.
These promissory notes shall comply with the
legal requirements of the Indonesian law regarding
Bills of Exchange.
In fulf ilment of the payments of these promissory
notes at their maturity dates the Bank Negara Indonesia
shall put at the disposal of the National Bank of
Hungary the respective amounts at a correspondent bank
- 6 -
of the National Bank of Hungary to be designated by
the latter.
The receipt of these promissory notes by the
National Bank of Hungary will release the Bank
Negara Indonesia from its former payment obligations.
The drafts and other documents securing the previous
payment obligations of the Bank Negara Indonesia
will be substituted by the aforementioned promissory
notes.
Article 4
Should the official par value of the US dollar
to the fine gold /being at present 1 US $ equal to
0.888671 gram fine gold/ be modified before the
maturity dates of the outstanding promissory notes,
the amount of these promissory notes will be
proportionately adjusted and replaced by the Bank
Negara Indonesia for new ones the amounts of which
shall represent the same gold value as the old ones
were representing as before the change in the official
par value of the US $ to the fine gold.
Article 5
A Banking Arrangement for the implementation
of the provisions of the present Protocol will be
concluded between the Bank Negara Indonesia and the
National Bank of Hungary within 30 days from the
entering into force of the present Protocol. The
Republic of Indonesia guarantees herewith the transfers
on the maturity dates of the amounts due in accordance
with the agreement contained in the present Protocol
- 7 and in accordance with the Banking Arrangement
to be made for its implementation and also guarantees
to grant the necessary licences.
Article 6
The Indonesian export proceeds not yet
transferred to Indonesia by the National Bank of
Hungary and to be utilised in accordance with
Article 2 will bear interest at the rate of
4 per cent p . a . as from the date when they became
due for payment up to the dates when payments
according to Article 2 , Para . Bl shall be
effected.
Article 7
The present Protocol does not cover the
existing contracts relating to the fluorescent
tube factory and the welding electrode factory ,
implementation of which has so far not been
effected by the respective Hungarian firms on
account of non-fulfilment of payment obligations
by the respective Indonesian firms .
Article 8
The present Protocol shall enter into force
after the approval of the Government of both
Contracting Parties . Th e Parties will immediately
11
- 8 I
notify each other about the approval.
"
DONE and signed in Budapest on the 16th of
September 1967 in two originals in English language,
both texts being equally authentic.
..
FOR THE GOVERN1VIENT OF
THE REPUBLIC OF INDONESIA
Signed
/Ismael M. Thajeb/
II
II
FOR THE GOVERNMENT OF THE
IDJNGARIAN PEOPLE'S REPUBLIC
Signed
/Dr. Bela Szalai/
I hereby certify that the Government of the
Hungarian People's Republic has authorized
Dr . Be la SZALAI, Deputy Minister of Foreign
Trade , to ac t on behalf of the Hungarian Party
i n the course of the economic negotiat i ons
between the Hungarian People ' s Republic and
the Republic of Indonesia, as ·well as to sign
in the name of the Government of the Hungarian
People's Republic the agreement to be concluded
as a result of the negotiations .
Budapest, 8th September , 1967.
I Peter M6D /
First Deputy Minister
of Foreign Affa irs
of the Hungarian People's Republic
'11a.."'lusitom, ho y a I1a yar Nepkoztarsas ;,:) Ko,..·m..mya felho..talmazta Dr . u:6ALAI B0 la Ｚ･ｾＱｬｫ｣＠
eol{ede lr.i mini...,zterllel ｾＭ･ｴｳ＠
urat , no y