I have the honour to acknowledge the receipt of Your Excellency's Note
I have the honour to acknowledge the receipt of Your Excellency's Note
of today's date, which reads as follows:
"I have the honour to confirm the following understanding recently
reached between the representatives of the Government of Japan and of the
Government of the People's Republic of China concerning a Japanese loan to
be extended with a view to contributing to the economic stabilization and
promoting the economic modernization efforts of the People's Republic of
China:
1. (1) A loan in Japanese yen up to the amount of one hundred and
seventy billion five hundred and eleven million yen ( гд170,511,000,000)
(hereinafter referred to as "the Loan") will be extended, in accordance
with the relevant laws and regulations of Japan, to the Government of the
People's Republic of China by the Overseas Economic Cooperation Fund
(hereinafter referred to as "the Fund") to implement the projects and the
program listed in the List attached hereto (hereinafter referred to as
"the List"), according to the amount for each project and the program as
specified in the List. The Ministry of Foreign Trade and Economic
Cooperation of the People's Republic of China (hereinafter referred to as
"the Ministry") is authorized by the Government of the People's Republic
of China to accept the Loan and sign the loan agreements with the Fund on
behalf of the Government of the People's Republic of China.
His Excellency Mr. Yoshiyasu Sato
Ambassador Extraordinary and
Plenipotentiary of Japan to
the People's Republic of China
(2) The Loan will be extended in line with sub-paragraph (2) of
paragraph 2 of the "Funds for Development" Initiative announced by the
Government of Japan on June 25, 1993.
2. (1)The Loan will be made available by loan agreements to be
concluded for each of the projects and the program mentioned in
sub-paragraph (1) of paragraph 1 between the Ministry and the Fund. The
terms and conditions of the Loan as well as the procedures for its
utilization will be governed by the said loan agreements which will
contain. inter alia, the following principles:
(a) The repayment period will be twenty (20) years after the grace
period of ten (10) years.
(b) The rate of interest will be two point three per cent (2.3%) per
annum with regard to the projects and the program mentioned in 1 to 14 of
the List and two point one per cent (2.1%) per annum with regard to the
environmental projects mentioned in 15 to 22 of the List.
(c) The disbursement period will be seven (7) years with regard to the
projects mentioned in 16 to 18 of the List, and five (5) years with regard
to the projects and the program mentioned in 1 to 15 and 19 to 22 of the
List from the date of coming into force of the relevant loan agreements.
(2) Each of the loan agreements mentioned in sub-paragraph (1) above
will be concluded after the Fund is satisfied of the feasibility,
including environmental consideration, of the project or the program to
which such loan agreement relates.
(3) The disbursement period mentioned in sub-paragraph (1) (c) above
may be extended, with the consent of the authorities concerned of the two
Governments.
3. (1) The Loan will be made available to cover payments to be made by
Chinese executing agencies to suppliers, contractors and/or consultants of
eligible source countries under such contracts as have been or may be
entered into between them for purchases of products and/or services to be
required for the implementation of the projects and the program mentioned
in subparagraph (1) of paragraph 1, provided that such purchases are made
in such eligible source countries for products produced in and/or services
supplied from those countries.
(2) The loan for the program mentioned in 12 of the List and a part of
the loans for the projects mentioned in 21 and 22 of the List will be made
available to cover credits to be extended by the Export-Import Bank of
China to sub-borrowers for the implementation of the said projects and
program.
(3) The scope of eligible source countries mentioned in sub-paragraph
(1) above will be agreed upon between the authorities concerned of the
two Governments.
4. The Government of the People's Republic of China will take
necessary measures for products and/or services mentioned in sub-paragraph
(1) of paragraph 3 to be procured in accordance with the guidelines for
procurement of the Fund, which set forth, inter alia, the procedures of
international tendering to be followed except where such procedures are
inapplicable or inappropriate.
5. The Government of the People's Republic of China will exempt:
(1) the Fund from Chinese fiscal levies or taxes on and/or in
connection with the Loan as well as interest accruing therefrom; and
(2) Japanese companies operating as contractors and/or consultants
from Chinese duties and related fiscal charges with respect to the
bringing-in and bringing-out of their own construction equipment needed
for the implementation of the projects and the program mentioned in
sub-paragraph (1) of paragraph 1.
6. Japanese nationals whose services may be required in the People's
Republic of China in connection with the supply of products and/or
services to be provided under the Loan will be accorded such facilities as
may be necessary for their entry into the People's Republic of China and
stay therein for the performance of their work.
7. With regard to the shipping of products purchased under the Loan,
the two Governments will, in accordance with the Agreement on Maritime
Transport between Japan and the People's Republic of China signed at Tokyo
on November 13, 1974 and the Exchange of Notes between the two Governments
dated August 25, 1976, concerning the establishment of private
organizations for the consultation on shipping service and other related
matters, encourage smooth and timely consultations between the
organizations of shipping companies of the two countries referred to in
the said Exchange of Notes.
8. The Government of the People's Republic of China will take
necessary measures to ensure that:
(1) the Loan be used properly and exclusively for the projects and the
program listed in the List; and
(2) the facilities constructed under the Loan be maintained and used
properly and effectively for the purposes prescribed in this
understanding.
9. The Government of the People's Republic of China will, upon
request. furnish the Government of Japan with information on the progress
of the projects and the program mentioned in sub-paragraph (1) of
paragraph 1.
10. The two Governments will jointly review from time to time the
progress of the implementation of the Loan and take measures necessary to
secure smooth and effective utilization of the Loan and otherwise consult
with each other in respect of any matter that may arise from or in
connection with the foregoing understanding.
I should be grateful if Your Excellency would confirm the foregoing
understanding on behalf of the Government of the People's Republic of
China.
LIST
(Maximum amount
in million yen)
1. Beijing Capital Airport Terminal Area Expansion
Project (III) 8,459
2. Xi'an-Ankang Railway Construction Project (II) 2,526
3. Shuoxian-Huanghua Railway Construction Project (II) 12,245
4. Guiyang-Loudi Railway Construction Project 12,932
5. Urumuqi International Airport Expansion Project 4,890
6. Lanzhou Zhongchuan Airport Expansion Project 6,338
7. Qingdao Port Second Phase Expansion Project 2,700
8. Guiyang-Xinzhai Highway Construction Project 14,968
9. Guangzhou-Kunming-Chengdu Optical Fiber
Cable Construction Project 5,349
10. Lanzhou-Xining-Lhasa Optical Fiber Cable
Construction Project 3,046
11. Interior Regions Telecommunication Network
Expansion Project 15,003
12. Sanjiang Plain Agricultural Development Program 14,910
13. Sanjiang Plain Longtouqiao Reservoir Construction
Project 3,000
14. Liaoning Baishi Reservoir Construction Project 8,000
15. Hohhot Water Supply Project 5,446
16. Beijing No. 9 Water Works Expansion Project 14,680
17. Guiyang Water Supply Project 5,500
18. Zhanjiang Water Supply Project 5,519
19. Lanzhou Environmental Improvement Project 7,700
20. Shenyang Environmental Improvement Project 5,000
21. Hohhot And Baotou Atmospheric Pollution
Improvement Project 10,000
22. Liuzhou Environmental Improvement Project 2,300
Total 170,511"
I have further the honour to confirm on behalf of the Government of
the People's Republic of China the understanding set forth in Your
Excellency's Note.
I avail myself of this opportunity to renew to Your Excellency the
assurances of my highest consideration.
(signed) Tang Jiaxuan
Vice-Minister of Foreign Affairs
of the People's Republic of China
Beijing, December 24,1996
Excellency,
I have the honour to acknowledge the receipt of Your Excellency's Note
of today's date, which reads as follows:
"With reference to the Exchange of Notes dated today concerning a
Japanese loan to be extended with a view to contributing to the economic
stabilization and promoting the economic modernization efforts of the
People's Republic of China, I have the honour to propose, on behalf of the
Government of Japan, that in case there is any divergence of
interpretation of the said Exchange of Notes which is done in the
Japanese, Chinese and English languages, the English text shall prevail."
I have further the honour to express agreement, on behalf of the
Government of the People's Republic of China, to the proposal put forward
in Your Excellency's Note.
I avail myself of this opportunity to renew to Your Excellency the
assurances of my highest consideration.
(signed) Tang Jiaxuan
Vice-Minister of Foreign Affairs
of the People's Republic of China
His Excellency Mr. Yoshiyasu Sato
Ambassador Extraordinary and
Plenipotentiary of Japan to the
People's Republic of China
Record of Discussions
In connection with the Exchange of Notes dated today concerning a
Japanese loan to be extended with a view to contributing to the economic
stabilization and promoting the economic modernization efforts of the
People's Republic of China, the representatives of the Chinese Delegation
and of the Japanese Delegation wish to record the following:
1. With reference to the financing formula for procurement in the
People's Republic of China under the Loan mentioned in the said Exchange
of Notes, the following principles will be applied:
(1) Tender will be called on that part of the project classified as
"foreign currency portion", The tender will be open to nationals of
eligible source countries including the People's Republic of China.
(2) With regard to the contract which is to be awarded to Chinese
nationals through the tendering, financing will be made to the whole
amount of such contract within the scope of the said "foreign currency
portion".
2. (1) (a) With reference to the program mentioned in 12 of the List
attached to the said Exchange of Notes (hereinafter referred to as "the
List"), the Loan will be used to cover credits extended by the
Export-Import Bank of China to the sub-borrower for the purpose of
agricultural development in Heilongjiang Province.
(b) The "sub-borrower" mentioned in (a) above is the General Bureau of
State Farms of Heilongjiang Province.
(2) (a) With reference to the project mentioned in 21 of the List, a
part of the Loan will be used to cover credits extended by the
Export-Import Bank of China to sub-borrowers through Hohhot Municipal
Government and Baotou Municipal Government for the purpose of improving
environmental pollution.
(b) "Sub-borrowers" mentioned in (a) above mean those enterprises
which take measures of improving environmental pollution.
(3) (a) With reference to the project mentioned in 22 of the List, a
part of the Loan will be used to cover credits extended by the
Export-Import Bank of China to sub-borrowers through Liuzhou Municipal
Government for the purpose of improving environmental pollution.
(b)"Sub-borrowers" mentioned in (a) above mean those enterprises which
take measures of improving environmental pollution.
Beijing, December 24, 1996
For the Chinese Delegation: For the Japanese Delegation:
(signed) Ying Hong (signed) Yoshiyuki Sadaoka
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