Selanjutnya
J\greement between the Government of the Republic of Indonesia and
the Government of the Kingdom of the Netherlands concernipg
the tinanoial problems still outstanding between the two countries
The Government of the Republic of Indonesia and the Government of the Kingdom of the Netherlands;
desirous of settling the outstanding financial problems
between the two countries;
considering that this end should be accomplished in a single,
all-inclusive agreement, whioh shall include the payment of a lump
sum;
considering that such an agreement should be baaed on principles of justice, humanity and equity;
have agreed as follovsa
Article l
1. In the present A&reement the term "outstanding financial
problems" ｳｾｬ＠
include all financial claims of either of the
Contraoting Parties and of ｩｴｾ
｟ ｮ｡ｴｩｯｬｳ＠
against the other Contracting Party and its nationals, either based on bilateral agreements or resulting from other cause., pension-rights included, aa
far as these claims originated before August 15, 1962.
2. The term "outstanding financial problems" shall not comprise
any rights and obligations deriving from (normal) trade relations
between the two countries and from the existing bilateral payments
agreement, nor does the term comprise the obligations whioh either
of the Parties has towards nationals of the other Party as a
consequence of contractual relations or decisions of the national
courts of either country.
3. The present Agreement shall also cover the losses sustained by
Netherlands nationals as a consequenoe of the faotual impossibility
of exercising their property rights in West-Irian, as mentioned in
article XXII, paragraph 3, of the Agreement between the Republic of
Indonesia and the Kingdom of the Netherlands concerning West-Irian
(West New Guinea).
- Article 2 -
- 2 -
Article 2
The ｴｷｾ＠
Contracting Parties shall refrain both from itemizing
their respeotive olaims and from evaluating or acknowledging the
olaims of the other Party.
Article 3
1. The Contraoting Parties agree that the payment by the Indonesian
Government of six hundred million Dltoh guilders to the Netherlands Government will oonstitute a full and final ae;tlement of all
outstanding finanoial problems.
2. The Indonesian Government shall pay the amount of aix hundred
million Dltoh guilders reduced by the amount of 36 million
guilders, whioh was set aside as an initial payment on a special
aooount in the name of "De Nederlandsohe Bank N.V." on the books
of "De Indoneaisohe Overzeese Bank N.V." in 1965, in instalments
as specified in Artiole 4 of the present .Agreement.
Article 4
l. In view of the preaent circumstances the remaining amount of
five hundred and sixty four million Ul.toh guilders shall be paid
as follows.
2. Beginning on 31st December 1973 the Republic of Indonesia shall
pay the amount mentioned in paragraph l in thirty equal annual
instalments. The outstanding amounts will bear interest at a rate
of l percent a year as from 1st January 1974 onwards, the first
payment of interest to be made on 31st December 1974•
3. All payments shall be made into the account of the Netherlanda
Government with "De Nederlandsohe Bank N.V.".
- Article 5
- 3 -
Article 5
1. The implementation of the present Agreement will relieve the
Contraotirtg Parties and their nationals trom any and all
obligations towards each other, as far as these obligations
result directly or indirectly from the implementation by the
Republic of Indonesia of legislative and/or administrative .
measures, affecting Netherlands interests and taken before
August 15, 1962.
2. The provision of paragraph l of this Article does not apply
to rights and obligations as defined in paragraph 2 of Article l.
Artiole 6
The Netherlands Government shall decide at its discretion
vha.t natural and corporate bodies shall be entitled to the
funds made available by the Republic of Indonesia and what
amounts shall be received by each of them.
Article 1
The present Agreement shall come into force on the date
on which both Governments have informed each other in writing
that the formalities constitutionally required in their respective
countries have been complied with.
IN WITNESS WHEREOF the undersigned, being duly authorised
thereto by their respective Governments, have signed the present
Agreement.
DONE at The Hague, this seventh day of September 1966, in
duplicate in the English language.
For the Government of the
Republic o-t"irndonesia,
Signed
•
For the Government of the
Kingdom of the Netherlands,
Signed
l
The Hague, September
?, 1966.
Your Highness,
l.!. With reference to paragraph 1 of Article 1 of the Agreement
concerning the financial problems still outstanding between our two
countries, I have the honour to draw your attention to the circumstance, that it was already agreed in the exchange of letters, dated
Djakarta, September ll, 1965, between the Chairmen of the Netherlands
and the Indonesian delegations in the Joint Netherlands-Indonesian
Committee on outstanding financial problems, that the immovable
property registered in the name of the Netherlands Government and/or
its agencies should be exempted from the real estate, envisaged in
point 5 sub c of the Netherlands memorandum dated Tjibulan, September
4, 1965. Furthermore it was agreed that this property will be the
subject of discussions between the Indonesian Department of Foreign
Affairs and the Royal Netherlands filnbassy in Djakarta, with a view
to reaching an agreement which will provide for adequate housing of
the Embassy offices and its staff.
2.Therefore the Netherlands Government understands that the
present Agreement does not cover the Netherlands claim as to the above
mentioned immovable property.
3. As the discussions between the Indonesian Department of Foreign
Affairs and the Royal Netherlands Embassy in Djakarta have not yet
resulted in an agreement on this subject, I should, therefore, feel
grateful if these discussions could be continued, in order that a
final agreement will be reached.
±.:.I should appreciate it if you would confirm that the Indonesian
Government agrees with the understanding as outlined in paragraph 2.
I avail myself of this opportunity to renew to Your Highness the
assurance of my highest consideration.
Signed
His Highness
Sri Sultan Hamengku Buwono IX,
Presidium Minister for Economics and Finance
of the Republic of Indonesia,
THE HAGUE.
The Hague, September 7, 1966.
Your Highness,
With reference to paragraph 2 of Article 1 of the Agreement
concerning the financial problems still outstanding between our two
countries, I have the honour to draw your attention to the following.
The clause "the obligations which 3ither of the Parties has
towards nationals of the other Party as a consequence of contraotual
relations or deoisions of the national courts of either country"
includes the claims of the A.N . I.E.M. and the O.G.E. M. In the exchange
of letters between the Ch.airmen of the Netherlands and the Indonesian
deleeations in the Joint Netherlands-Indonesian Committee on outstanding financial problems, dated Djakarta, September 11, 1965, it
was already agreed that the Indonesian authorities will discuss further
with the A.N.I.E.M . and O.G.E.M. a separate arrangement of the
indemnification due under Indonesian law of their properties taken
over prior to the nationalization of Dutch enterprises.
I, therefore, feel that both companies should be given the opportunity to present and discuss their case, for which, I trust, it will
be possible to arrive at an arrangement that will be acceptable to both
parties . It is our understanding that such an arrangement should be
reached at the earliest appropriate moment, /ed ae b lettl51 then ｣ｯｮｵｲ･ｴｾＧ＠
with the multilateral settlement of commercial debts, for whichjdiscussions in Tokio have been organized.
I should appreciate it if you would confi rm that the Indonesian
GovernMent agrees with the understanding as outlined in the preceding
paragraph.
I avail myself of this opportunity to renew to Your Highness the
assurance of my highest consideration .
His Highness
Sri Sultan Hamengku Buwono IX,
Presidium Ministerfor Economics and Finance
of the Republic of Indonesia,
Signed
THE HAGUE .
I_ _ _ _ _ _ _ __
I
The Hague, September 7, 1966.
Your Highness,
With reference to paragraph 1 of Article 1 of the Agreement
concerning the financial problems still outstanding between our
two countries, ! have the honour to draw your attention to the
circumstance, that it was agreed in the exchange of letters,
dated Djakarta, September 11, 1965, between the Chairmen of the
Netherlands and the Indonesian delegations in the Joint Netherlands-Indonesian Committee on outstanding financial problems,
that the term "outstanding financial problems" do not comprise
the claim of the Netherlands for approximately five million
Dutch guilders for buildings and installations in West-Irian
purchased by the Republic of Indonesia.
Therefore the Netherlands Government understands that the
present Agreement does not cover the above mentioned claim either.
I should appreciate it if you would confirm that the
Indonesian Government agrees with the understanding as outlined
in the preceding paragraph.
I avail myself of this opportunity to renew to Your Highness
the assurance of my highest consideration.
His Highness
Sri Sultan llamengk:u Buwono IX,
Presidium Minister for Economics and Finance
of the Republic of Indonesia,
THE HAGUE.
Signed
. I
The Hague, September 7, 1966.
Your Highness,
Followine the discussions held from 5 to 7 September 1966 I
have the honour io confirm herewith the proposal of the Netherlands
Government to extend the followine facilities for assistance for
emergency purposes and for the further development of Indonesia in
the context of closer economic co-operation between our two countries
1
A. The Netherlands Government will grant to the Indonesian Government
a gift of fl. 22 million.
B. The Netherlands Government will make available to the Indonesian
Government via De Nederlandsohe Investeringsbank voor Ontwilckelingslanden N.V. (NIO) a loan of fl. 4 million, to be guaranteed by the
Netherlands Government.
The foDowine points may be noted concernine the nature of the
gift and the loan to be granted
1
a. The funds shall be used for general development purposes.
b. Both loan and gift shall be of an untied character. lA.te note has
been taken of Indonesia's intention to place most of the orders in
the Netherlands.
c. Subjeot to (a) and (b) above the utilisation of these funds shall
be a matter for the Government of Indonesia's disoretion. Nevertheless,
it is considered desirable that the Government of Indonesia
periodically give advance indication as to the general manner in
whioh the funds will be used to the Directorate General for Foreign
Economic Relations in the Netherlands Ministry of Economic Affairs.
The Directorate General will convey its approval of the spendine of
the funds from the loan to the NIO. It will convey ita approval of'
the spendine of the funds from the gift to the Indonesian lYnbassy
under a procedure still to be a.rraneed.
His Highness
Sri Sultan Hamengku Buwono IX,
Presidium Minister for Economic and Finance
of' the Republic of Indonesia,
- d. -
THE HAGUE.
--------------------------------------------------------------------------------------------' !
- 2
d. The1erms on which the loan will be made available will be laid
down in an agreement to be concluded between the NIO on behalf
of the Netherlands Government, and the Government of Indonesia.
Such loan agreement will provide i.a. :
that the period of repayment shall be 25 years including a
period of grace of 7 years during which no repayments of
capital will be demanded;
3%
- a flat rate of interest of
per annum shall be charged on
all sums disbursed to the Government of Indonesia, and will
be payable each calendar half year.
C. Netherlands' commercial banks will make available, on terms
further to be agreed upon)>etween these banks and the
Government of Indonesia
(ｾ＠ ""''·
Bank Negara Indonesia ) and
under a Netherlands government guarantees credits to a maximum
total amount of fl. 40 million of 3 years' duration, without
repayments during that period, at an interest rate of
3%
on all
sums disbursed plus costs. The latter costs will comprise a
service charge of 1%, to be paid on the day of putting the
credit at the disposal of the Bank Negara, commitment charges
due on amounts not disposed of, with a free period of 6 months,
an insurance premium of
1%0
and normal insurance charges. These
credits will be available for the purchase of goods and services
of Dutoh origin about which priol. agreement will have been
reached between the
ｾ｡ﾰＡｮ､ｯ･ｳｩ＠
and the Directorate
General for Foreign Economic Relations. In the project of law
for this a rrangement the Netherlands Government will indicate
to Parliament the intention that at the end of the period of 3
years these credits be replaced by a development loan with a
period of repayment of 25 years, the period of 3 years mentioned
above included, on the terms as apply to the fl. 4 Million loan
mentioned under B.
FUrthermore I herewith confirm the two following
arrangements on which agreement was reached at an earlier stage
pending a final settlement of the outstanding financial problems s
a-
I
- 3 -
a- the Netherlands Government granted a guarantee for exportcredi ts for goods and services to a total contract value
of fl. 100 million, ("a.greed minutes of discussions between
the Delegations of the Republic of Indonesia and of the
Kingdom of the Netherlands established at their meeting of
Friday November 6, 196411 ) ; consultations will take place on
the use of the remaining balance of these credits;
b- the facilities for the A-account between the Netherlands and
Indonesia, were extended with an amount of fl. 10 million
(letters of De Nederlandsche Bank of February 4, 1966 and the
Bank Negara Indonesia of February 25, 1966).
place
will not be hampered by measures taken by
...-=i:ftaeneeian eJo vu11m1ent.
It is also confirmed that the Netherlands Government
remains prepared to make available through the agreed channels
the FUNDWI :funds which as Your Highness will recall, amount to
a total of $30 million. The Netherlands Government is prepared to
investigate in close co-operation with the bodies concerned ways
and means to accelerate as far as possible the approval of projects.
If Your Highness deems the abovementioned proposals
acceptable Your answer might be given in a letter confirming Your
acceptance. It would be understood that this exchange of letters
does not constitute a formal agreement but an understanding on the
main conditions of the agreements which will have to be concluded
subsequently between our Governments casu quo the aforementioned
institutions.
I avail myself of this opportunity to renew to Your
Highness the assurance of my highest consideration.
Signed
ｾＺＭ
I
ｾＺ］ｊ＠
The Hague, September 7, 1966.
Your Highness,
With reference to paragraph
ｾ＠
of Article 3 of the
Agreement concerning the financial problems still outstanding between our two countries, I have the honour
to specify that the amount of 36 million euildera, which
was set aside as an initial payment on a special account
in the name of "De Nederlandsche Bank N.V. 11 on the books
of "De Indonesische Overzeese Bank N.V. 11 in 1965 will be
put at the free disposal of the Netherlands Government
in two equal instalments, the first
of
which shall be due
on the thirty-first of December 1966 and the second on
the thirty-first of December 1967.
I should appreciate it if you would confirm that
the Indonesian Government agrees with the understanding
as outlined before.
I avail myself of this appportunity to renew to
Your Highness the assurance of my highest consideration.
Signed
His Highness
Sri Sultan Hamengku Buwono IX,
Presidium Minister for Economics and Finance
of the Republic of Indonesia,
THE HAGUE.
'
\
The Hague, September 7, 1966.
Your Highness,
It is understood that the problem mentioned in point 10
of the "agreed minutes of discussions between the Delegation
of the Kingdom of the Netherlands and the Delegation of the
Republic of Indonesia on financial facilitiea and on pending
financial problema" dated July 19, 1966, according to which
both National Banks will continue their study of the remaining
questions on securities, will be finalised between the two
Central l3anks as soon as possible.
I should appreciate it if you would confirm that the
Indonesian Government agrees with the understanding as outlined before.
I avail myself of this opportunity to renew to Your
Highness the assurance of my highest consideration.
Signed
His Highness
Sri Sultan Hamengku Buwono IX,
Presidium Minister for Eoonomio and Finance
of the Republic of Indonesia,
THE HJ.GUE.
the Government of the Kingdom of the Netherlands concernipg
the tinanoial problems still outstanding between the two countries
The Government of the Republic of Indonesia and the Government of the Kingdom of the Netherlands;
desirous of settling the outstanding financial problems
between the two countries;
considering that this end should be accomplished in a single,
all-inclusive agreement, whioh shall include the payment of a lump
sum;
considering that such an agreement should be baaed on principles of justice, humanity and equity;
have agreed as follovsa
Article l
1. In the present A&reement the term "outstanding financial
problems" ｳｾｬ＠
include all financial claims of either of the
Contraoting Parties and of ｩｴｾ
｟ ｮ｡ｴｩｯｬｳ＠
against the other Contracting Party and its nationals, either based on bilateral agreements or resulting from other cause., pension-rights included, aa
far as these claims originated before August 15, 1962.
2. The term "outstanding financial problems" shall not comprise
any rights and obligations deriving from (normal) trade relations
between the two countries and from the existing bilateral payments
agreement, nor does the term comprise the obligations whioh either
of the Parties has towards nationals of the other Party as a
consequence of contractual relations or decisions of the national
courts of either country.
3. The present Agreement shall also cover the losses sustained by
Netherlands nationals as a consequenoe of the faotual impossibility
of exercising their property rights in West-Irian, as mentioned in
article XXII, paragraph 3, of the Agreement between the Republic of
Indonesia and the Kingdom of the Netherlands concerning West-Irian
(West New Guinea).
- Article 2 -
- 2 -
Article 2
The ｴｷｾ＠
Contracting Parties shall refrain both from itemizing
their respeotive olaims and from evaluating or acknowledging the
olaims of the other Party.
Article 3
1. The Contraoting Parties agree that the payment by the Indonesian
Government of six hundred million Dltoh guilders to the Netherlands Government will oonstitute a full and final ae;tlement of all
outstanding finanoial problems.
2. The Indonesian Government shall pay the amount of aix hundred
million Dltoh guilders reduced by the amount of 36 million
guilders, whioh was set aside as an initial payment on a special
aooount in the name of "De Nederlandsohe Bank N.V." on the books
of "De Indoneaisohe Overzeese Bank N.V." in 1965, in instalments
as specified in Artiole 4 of the present .Agreement.
Article 4
l. In view of the preaent circumstances the remaining amount of
five hundred and sixty four million Ul.toh guilders shall be paid
as follows.
2. Beginning on 31st December 1973 the Republic of Indonesia shall
pay the amount mentioned in paragraph l in thirty equal annual
instalments. The outstanding amounts will bear interest at a rate
of l percent a year as from 1st January 1974 onwards, the first
payment of interest to be made on 31st December 1974•
3. All payments shall be made into the account of the Netherlanda
Government with "De Nederlandsohe Bank N.V.".
- Article 5
- 3 -
Article 5
1. The implementation of the present Agreement will relieve the
Contraotirtg Parties and their nationals trom any and all
obligations towards each other, as far as these obligations
result directly or indirectly from the implementation by the
Republic of Indonesia of legislative and/or administrative .
measures, affecting Netherlands interests and taken before
August 15, 1962.
2. The provision of paragraph l of this Article does not apply
to rights and obligations as defined in paragraph 2 of Article l.
Artiole 6
The Netherlands Government shall decide at its discretion
vha.t natural and corporate bodies shall be entitled to the
funds made available by the Republic of Indonesia and what
amounts shall be received by each of them.
Article 1
The present Agreement shall come into force on the date
on which both Governments have informed each other in writing
that the formalities constitutionally required in their respective
countries have been complied with.
IN WITNESS WHEREOF the undersigned, being duly authorised
thereto by their respective Governments, have signed the present
Agreement.
DONE at The Hague, this seventh day of September 1966, in
duplicate in the English language.
For the Government of the
Republic o-t"irndonesia,
Signed
•
For the Government of the
Kingdom of the Netherlands,
Signed
l
The Hague, September
?, 1966.
Your Highness,
l.!. With reference to paragraph 1 of Article 1 of the Agreement
concerning the financial problems still outstanding between our two
countries, I have the honour to draw your attention to the circumstance, that it was already agreed in the exchange of letters, dated
Djakarta, September ll, 1965, between the Chairmen of the Netherlands
and the Indonesian delegations in the Joint Netherlands-Indonesian
Committee on outstanding financial problems, that the immovable
property registered in the name of the Netherlands Government and/or
its agencies should be exempted from the real estate, envisaged in
point 5 sub c of the Netherlands memorandum dated Tjibulan, September
4, 1965. Furthermore it was agreed that this property will be the
subject of discussions between the Indonesian Department of Foreign
Affairs and the Royal Netherlands filnbassy in Djakarta, with a view
to reaching an agreement which will provide for adequate housing of
the Embassy offices and its staff.
2.Therefore the Netherlands Government understands that the
present Agreement does not cover the Netherlands claim as to the above
mentioned immovable property.
3. As the discussions between the Indonesian Department of Foreign
Affairs and the Royal Netherlands Embassy in Djakarta have not yet
resulted in an agreement on this subject, I should, therefore, feel
grateful if these discussions could be continued, in order that a
final agreement will be reached.
±.:.I should appreciate it if you would confirm that the Indonesian
Government agrees with the understanding as outlined in paragraph 2.
I avail myself of this opportunity to renew to Your Highness the
assurance of my highest consideration.
Signed
His Highness
Sri Sultan Hamengku Buwono IX,
Presidium Minister for Economics and Finance
of the Republic of Indonesia,
THE HAGUE.
The Hague, September 7, 1966.
Your Highness,
With reference to paragraph 2 of Article 1 of the Agreement
concerning the financial problems still outstanding between our two
countries, I have the honour to draw your attention to the following.
The clause "the obligations which 3ither of the Parties has
towards nationals of the other Party as a consequence of contraotual
relations or deoisions of the national courts of either country"
includes the claims of the A.N . I.E.M. and the O.G.E. M. In the exchange
of letters between the Ch.airmen of the Netherlands and the Indonesian
deleeations in the Joint Netherlands-Indonesian Committee on outstanding financial problems, dated Djakarta, September 11, 1965, it
was already agreed that the Indonesian authorities will discuss further
with the A.N.I.E.M . and O.G.E.M. a separate arrangement of the
indemnification due under Indonesian law of their properties taken
over prior to the nationalization of Dutch enterprises.
I, therefore, feel that both companies should be given the opportunity to present and discuss their case, for which, I trust, it will
be possible to arrive at an arrangement that will be acceptable to both
parties . It is our understanding that such an arrangement should be
reached at the earliest appropriate moment, /ed ae b lettl51 then ｣ｯｮｵｲ･ｴｾＧ＠
with the multilateral settlement of commercial debts, for whichjdiscussions in Tokio have been organized.
I should appreciate it if you would confi rm that the Indonesian
GovernMent agrees with the understanding as outlined in the preceding
paragraph.
I avail myself of this opportunity to renew to Your Highness the
assurance of my highest consideration .
His Highness
Sri Sultan Hamengku Buwono IX,
Presidium Ministerfor Economics and Finance
of the Republic of Indonesia,
Signed
THE HAGUE .
I_ _ _ _ _ _ _ __
I
The Hague, September 7, 1966.
Your Highness,
With reference to paragraph 1 of Article 1 of the Agreement
concerning the financial problems still outstanding between our
two countries, ! have the honour to draw your attention to the
circumstance, that it was agreed in the exchange of letters,
dated Djakarta, September 11, 1965, between the Chairmen of the
Netherlands and the Indonesian delegations in the Joint Netherlands-Indonesian Committee on outstanding financial problems,
that the term "outstanding financial problems" do not comprise
the claim of the Netherlands for approximately five million
Dutch guilders for buildings and installations in West-Irian
purchased by the Republic of Indonesia.
Therefore the Netherlands Government understands that the
present Agreement does not cover the above mentioned claim either.
I should appreciate it if you would confirm that the
Indonesian Government agrees with the understanding as outlined
in the preceding paragraph.
I avail myself of this opportunity to renew to Your Highness
the assurance of my highest consideration.
His Highness
Sri Sultan llamengk:u Buwono IX,
Presidium Minister for Economics and Finance
of the Republic of Indonesia,
THE HAGUE.
Signed
. I
The Hague, September 7, 1966.
Your Highness,
Followine the discussions held from 5 to 7 September 1966 I
have the honour io confirm herewith the proposal of the Netherlands
Government to extend the followine facilities for assistance for
emergency purposes and for the further development of Indonesia in
the context of closer economic co-operation between our two countries
1
A. The Netherlands Government will grant to the Indonesian Government
a gift of fl. 22 million.
B. The Netherlands Government will make available to the Indonesian
Government via De Nederlandsohe Investeringsbank voor Ontwilckelingslanden N.V. (NIO) a loan of fl. 4 million, to be guaranteed by the
Netherlands Government.
The foDowine points may be noted concernine the nature of the
gift and the loan to be granted
1
a. The funds shall be used for general development purposes.
b. Both loan and gift shall be of an untied character. lA.te note has
been taken of Indonesia's intention to place most of the orders in
the Netherlands.
c. Subjeot to (a) and (b) above the utilisation of these funds shall
be a matter for the Government of Indonesia's disoretion. Nevertheless,
it is considered desirable that the Government of Indonesia
periodically give advance indication as to the general manner in
whioh the funds will be used to the Directorate General for Foreign
Economic Relations in the Netherlands Ministry of Economic Affairs.
The Directorate General will convey its approval of the spendine of
the funds from the loan to the NIO. It will convey ita approval of'
the spendine of the funds from the gift to the Indonesian lYnbassy
under a procedure still to be a.rraneed.
His Highness
Sri Sultan Hamengku Buwono IX,
Presidium Minister for Economic and Finance
of' the Republic of Indonesia,
- d. -
THE HAGUE.
--------------------------------------------------------------------------------------------' !
- 2
d. The1erms on which the loan will be made available will be laid
down in an agreement to be concluded between the NIO on behalf
of the Netherlands Government, and the Government of Indonesia.
Such loan agreement will provide i.a. :
that the period of repayment shall be 25 years including a
period of grace of 7 years during which no repayments of
capital will be demanded;
3%
- a flat rate of interest of
per annum shall be charged on
all sums disbursed to the Government of Indonesia, and will
be payable each calendar half year.
C. Netherlands' commercial banks will make available, on terms
further to be agreed upon)>etween these banks and the
Government of Indonesia
(ｾ＠ ""''·
Bank Negara Indonesia ) and
under a Netherlands government guarantees credits to a maximum
total amount of fl. 40 million of 3 years' duration, without
repayments during that period, at an interest rate of
3%
on all
sums disbursed plus costs. The latter costs will comprise a
service charge of 1%, to be paid on the day of putting the
credit at the disposal of the Bank Negara, commitment charges
due on amounts not disposed of, with a free period of 6 months,
an insurance premium of
1%0
and normal insurance charges. These
credits will be available for the purchase of goods and services
of Dutoh origin about which priol. agreement will have been
reached between the
ｾ｡ﾰＡｮ､ｯ･ｳｩ＠
and the Directorate
General for Foreign Economic Relations. In the project of law
for this a rrangement the Netherlands Government will indicate
to Parliament the intention that at the end of the period of 3
years these credits be replaced by a development loan with a
period of repayment of 25 years, the period of 3 years mentioned
above included, on the terms as apply to the fl. 4 Million loan
mentioned under B.
FUrthermore I herewith confirm the two following
arrangements on which agreement was reached at an earlier stage
pending a final settlement of the outstanding financial problems s
a-
I
- 3 -
a- the Netherlands Government granted a guarantee for exportcredi ts for goods and services to a total contract value
of fl. 100 million, ("a.greed minutes of discussions between
the Delegations of the Republic of Indonesia and of the
Kingdom of the Netherlands established at their meeting of
Friday November 6, 196411 ) ; consultations will take place on
the use of the remaining balance of these credits;
b- the facilities for the A-account between the Netherlands and
Indonesia, were extended with an amount of fl. 10 million
(letters of De Nederlandsche Bank of February 4, 1966 and the
Bank Negara Indonesia of February 25, 1966).
place
will not be hampered by measures taken by
...-=i:ftaeneeian eJo vu11m1ent.
It is also confirmed that the Netherlands Government
remains prepared to make available through the agreed channels
the FUNDWI :funds which as Your Highness will recall, amount to
a total of $30 million. The Netherlands Government is prepared to
investigate in close co-operation with the bodies concerned ways
and means to accelerate as far as possible the approval of projects.
If Your Highness deems the abovementioned proposals
acceptable Your answer might be given in a letter confirming Your
acceptance. It would be understood that this exchange of letters
does not constitute a formal agreement but an understanding on the
main conditions of the agreements which will have to be concluded
subsequently between our Governments casu quo the aforementioned
institutions.
I avail myself of this opportunity to renew to Your
Highness the assurance of my highest consideration.
Signed
ｾＺＭ
I
ｾＺ］ｊ＠
The Hague, September 7, 1966.
Your Highness,
With reference to paragraph
ｾ＠
of Article 3 of the
Agreement concerning the financial problems still outstanding between our two countries, I have the honour
to specify that the amount of 36 million euildera, which
was set aside as an initial payment on a special account
in the name of "De Nederlandsche Bank N.V. 11 on the books
of "De Indonesische Overzeese Bank N.V. 11 in 1965 will be
put at the free disposal of the Netherlands Government
in two equal instalments, the first
of
which shall be due
on the thirty-first of December 1966 and the second on
the thirty-first of December 1967.
I should appreciate it if you would confirm that
the Indonesian Government agrees with the understanding
as outlined before.
I avail myself of this appportunity to renew to
Your Highness the assurance of my highest consideration.
Signed
His Highness
Sri Sultan Hamengku Buwono IX,
Presidium Minister for Economics and Finance
of the Republic of Indonesia,
THE HAGUE.
'
\
The Hague, September 7, 1966.
Your Highness,
It is understood that the problem mentioned in point 10
of the "agreed minutes of discussions between the Delegation
of the Kingdom of the Netherlands and the Delegation of the
Republic of Indonesia on financial facilitiea and on pending
financial problema" dated July 19, 1966, according to which
both National Banks will continue their study of the remaining
questions on securities, will be finalised between the two
Central l3anks as soon as possible.
I should appreciate it if you would confirm that the
Indonesian Government agrees with the understanding as outlined before.
I avail myself of this opportunity to renew to Your
Highness the assurance of my highest consideration.
Signed
His Highness
Sri Sultan Hamengku Buwono IX,
Presidium Minister for Eoonomio and Finance
of the Republic of Indonesia,
THE HJ.GUE.