The Government of the Republic of China and the Government of t-
he Republic of Macedonia (hereinafter referred to separately as
"the Republic of China" and "the Republic of Macedonia", and jo-
intly as "the Parties")

Desirous of further cementing their friendship and cooperation
by strengthening economic relations between the Parties,

And convinced that one of the means to achieve closer cooperati-
on is by establishing a long-term Republic of China-Republic of
Macedonia Economic Development Fund
(hereinafter referred to as "the Fund") for the benefit of the
Republic of Macedonia, Have agreed as follows:

ARTICLE I
Nature of the Fund and itr Objective
(1) The Fund shall be established for perpetuity, that is, only
incomes from investing the Fund shall be used for purposes
outlined in this Agreement, while the capital shall remain
in the account to generate subsequent incomes year after ye-
ar.
(2) The objectives of the Fund shall be to provide financial and
other resources to the Republic of Macedonia for the promot-
ion and acceleration of trade, investment, and other econom-
ic cooperation between the Parties through specific projects
and programs iisted in Article V of this Agreement.

ARTICLE II
Financing of the Fund
(1) The Republic of China shall contribute to the Fund the sum
of Two and A Half Million United states Dollars (US$ 2,500,0
00.00) per annum for a period of four (4) years, with the f-
irst payment due on July 1,2000, and the final payment due
on July 1, 2003.
(2) The Republic of Macedonia shall have the right according to
its financial capability in the future, to make contributio-
ns to the Fund.
(3) Both Parties shall have the right, as a result of consultat-
ions, to make further contributions to the Fund on terms and
conditions to be determined by a Board of Directors (herein-
after referred to as "the Board").

ARTICLE III
Location and Board of the Fund
(1) The Fund shall be established in Taipei, Taiwan.
(2) The Fund shall be governed by the Board, consisting of five
(5) persons, with the Minister of Foreign Affairs of the Re-
public of China as ex-officio chairperson of the Board.
(3) In addition to the chairperson, each of the Parties shall h-
ave the right to nominate two members to the Board; provided
that once the Republic of Macedonia has made equal financial
contributions to the Fund, it shall be entitled to nominate
a third member to the Board, thereafter the chairperson of
the Board shall be rotated between the Parties.
(4) In the interest of harmony, all decisions of the Board shall
be unanimous.

ARTICLE IV
Administration of the Fund
(1) The Board shall meet once every six months, alternating the
site of the meeting between Taipei and Skopje. The chairper-
son of the Board may call for extraordinary meetings if the
need arises.
(2) The Board shall make its own governing rules and regulations
.
(3) When the Board is not sitting, the chairperson and members
of the Board may communicate with each other, and their con-
sensus thus reached in writing, may be carried out as decis-
ions of the Board, to be approved expost facto by the next
Board meeting.
(4) There shall be a Secretariat of the Fund, the duties of whi-
ch shall be performed by the International Cooperation and
Development Fund of the Republic of China (hereinafter refe-
rred to as "ICDF"). The Secretary-General of ICDF shall ser-
ve ex officio as Secretary of the Board without remuneration
. Supporting stsff shall be drawn from ICDF's existing staff
.
(5) Unless otherwise directed by the Board, the incomes of the
Fund shall be manaped by ICDF through a special account, se-
parate from all other funds of, or administered by ICDF.
(6) The Fund shall begin functioning from August 1, 2000.

ARTICLE V
Use of the Fund's Income
(1) Earnings and other proceeds of the Fund shall be used to fi-
nance the following kinds of projects and programs:
(a) Those that will contribute to the sharing of macro and mic-
ro-economic development experiences between the Parties;
(b) Those that will aid the design, study and preparation of p-
rojects and programs for regional economic and trade integ-
ration and development in the RepuMic of Macedonia;
(c) Feasibility studies for social-economic development projec-
ts and programs in the Republic of Macedonia;
(d) Studies in policy and institutional development for macro
and sector reforms including, but not limited to, moderniz-
ation of trade, investment and taxation systems of the Rep-
ublic of Macedonia;
(e) Studies relating to capacity building of the public sector
of the Republic of Macedonia;
(f) Scholarship programs for short-term study in economic deve-
lopment and related fields in Taiwan; and
(g) Other specifoc projects approved by the Board.
(2) Management expenses of the Fund shall be kept to a minimum,
and subject to the approval of an annual budget by the Board
.

ARTICLE VI
Selection of Projects
(i) Beginning from the second year, the Secretariat of the Fund
shall estimate the resources available for use and submit an
annual report to the Board. The first annual report shall be
submitted not later than June 30, 2001.
(2) Starting in 2001 and before june 30 of each yeat, the Parti-
es shah submit project proposals to the Secretariat, includ-
ing such information as description of the project the exec-
uting agency, implementation scheduie, and if available, a
cost-benetit analysis.
(3) After preliminary screening, the Secretariat shall select a-
nd submit those projects to the Board it regards as practic-
able and within the capacity of the Fund to finance during
the following year. Once the Board has given its approval,
ICDF shall make disbursements to the executing agencies on
the basis of proper documentation and procedure.

ARTICLE VII
Accounting and Auditing
(1) The Fund shall follow the accounting practice of ICDF, prov-
ided that all accounts of the Fund shall be kept in a separ-
ate set of books.
(2) The financial statements of the Fund shall be audited annua-
lly by an outside auditor of international reputation.
(3) Members of the Board shall have the right to inspect the bo-
oks of the Fund kept by the Secretariat.

ARTICLE VIII
Termination of this Agreement
(1) This Agreement shall enter into force on the date of signat-
ure by the Parties.
(2) The Board shall have the power to dissolve the Funds, and m-
ake appropriate disposal of the resources of the Fund at the
time of dissolution.
(3) This Agreement shall be terminated only after the dissoluti-
on of the Fund, and the settlement of all accounts by the S-
ecretariat has been accepted by the Board.

IN WITNESS WHEREOF, the undersigned, duly authorized by their r-
espective Parties, have signed this Agreement.

Done in Skopje on 22 day of June, 2000, in duplicate in the Chi-
nese, Macedonian and English languages, all three texts being e-
qually authentic. In case of any divergence in interpretation,
the English text shall govern.


FOR THE GOVERNMENT OF FOR THE GOVERNMENT OF
THE REPUBLIC OF CHINA: THE REPUBLIC OF MACEDONIA:



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DR. HUNG-MAO TIEN DR. TRAJKO SLAVESKI
Mnister of Foreign Affairs Minister of Development