This Agreement made and entered into as of the twelfth day of M-
arch 1963 by and between the Government of the Republic of China
(hereinafter referred to as the "Government") and The Agency for
International Development (hereinafter referred to as "A. I. D."
), an Agency of the Government of the United States of America
(hereinafter referred to as "United States")
WITNESSETH:
WHEREAS, in accordance with the provisions of the Agricultural
Trade Development and Assistance Act of 1954, as amended, and p-
ursuant to the provisions of the Agricultural Commodities Agree-
ment between the United States and the Government dated April 27
, 1962, (hereinafter referred to as the "Commodities Agreement")
, a determination has been made to extend credit to the Governm-
ent, in an amount estimated at Thirty Seven Million Two Hundred
Twenty Eight Thousand New Taiwan Dollars (NT$ 37,228,000) to the
extent that New Taiwan dollars become available for credit purp-
oses pursuant to Article Ⅱ, paragraph 3 of the Commodities Agr-
eement but not in excess of Thirty-One percent (31%) of the New
Taiwan dollars proceeds agreed to be deposited under Article Ⅲ
of the Commodities Agreement and;
WHEREAS, the terms and conditions of this Agreement are consist-
ent with the terms and conditions established by the National A-
dvisory Council on International Monetary and Financial Problems
; NOW, THEREFORE, it is agreed that:
1 A. I. D. hereby establishes in favor of the Government a line
of credit not exceeding Thirty-One percent (31%) of the New T-
aiwan dollar proceeds accruing under the Commodities Agreement
, hereby estimated as Thirty Seven Million Two Hundred Twenty
Eight Thousand New Taiwan Dollars (NT$ 37,228,000), to assist
in financing projects or such other economic development pu-
rposes as may be from time to time agreed upon by the Governm-
ent and the Administrator. of A. I. D. (hereinafter referred
to as the "Administrator"); provided that none of said procee-
ds shall be disbursed under the credit after June 8,1965 unl-
ess agreement by the Government and the Administrator as to t-
heir use has been reached prior to such date.
2 For value received the Government hereby promises to pay to
A. I. D., its successors or assigns, the principal sum of Thi-
rty Seven Million Two Hundred Twenty Eight Thousand New Taiwan
Dollars (NT$ 37,228,000), or as many New Taiwan dollars as may
be advanced against this line of credit, in installments as s-
et forth in the Schedule of Payments attached hereto and made
a part hereof as Exhibit A, and to pay interest at the rate of
four percent (4%) per annum on the unpaid principal balance as
specified below. The principal shall be paid in semiannual in-
stallments, beginning four (4) years after the end of month in
which the first disbursement is made by the Administrator to
the Government under this Agreement, in amounts and at the ti-
me set forth in Exhibit A. Should the amount disbursed exceed
said principal sum, proportionate adjustments shall be made in
the installments shown in Exhibit A. Should the amount disbur-
sed fall short of said principal sum by more than ten percent
(10%) proportionate adjustments shall be made in the installm-
ents shown in Exhibit A; should the amount disbursed fall sho-
rt by ten percent (10%) or less, the deficiency shall be dedu-
cted from the last installment or installments shown in Exhib-
it A. interest on the outstanding balance of principal shall
begin at the end of the month in which the first disbursement
is made, such interest to be paid semi-annually thereafter be-
ginning six (6) months from that time. In event of default in
the prompt and full payment hereunder of principal or interes-
t, the entire unpaid principal hereof and interest thereon sh-
all become due and payable upon demand of A.I.D. The nonexerc-
ise by A.I.D. of such right at any time shall not constitute a
waiver of such right.
3 Disbursements for the account of the Government shall be made
from the New Taiwan dollars deposited under the provisions of
Article Ⅲ of the Commodities Agreement, and made available f-
or credit purposes pursuant to the provision to the provision
of Article Ⅱ, pargraph 3 thereof. Such disbursements shall be
advances under this line of credit as of the date of each per-
iodic statement rendered by the Administrator to the Governme-
nt reporting such disbursements. A.I.D. shall endorse upon th-
is Agreement the amount of the New Taiwan dollars so advanced.
4 Payments of interest and principal required to be made by the
Government to A.I.D. under this Agreement shall be made in New
Taiwan dollars or, at the option of the Government, in United
States dollars. If the Government elects to exercise the opti-
on to make payments in dollars, the amount of any such payment
shall be calculated at the time of payment to be equivalent to
the obligation in New Taiwan dollars computed on the following
basis:
a. The effective rate at which United States dollars are sold
in exchange for New Taiwan dollars to residents of the Rep-
ublic of China for the meeting of payments obligations abr-
oad, provided effective rates for New Taiwan dollars diffe-
ring by more than one percent from the par value agreed wi-
th the International Monetary Fund for that currency are n-
ot permitted by the Government and provided the parties to
this Agreement do not agree that another rate would be just
and reasonable; or
b. Otherwise, such other rate as is mutually agreed from time
to time.
Interest and principal shall be payable at the Office of A.I.D
.,Washington, D.C. New Taiwan dollars accepted by A.I.D. may
be transferred t the Secretary of the Treasury of the United
States to be held through such officer or officers of the Uni-
ted States as may be designated by the Secretary of the Treas-
ury.
5 The Government, without penalty or premium, may make prepayme-
nts of principal on this loan in New Taiwan dollars or, at the
option of the Government, in United States dollars computed on
the date any such prepayment is made at a rate of exchange ca-
lculated as provided in Section 4 hereof. Any prepayments made
by the Government shall apply to the principal installments in
Exhibit A in the inverse order of their maturity.
6 The Government agrees that any loans which it may make from f-
unds received under this agreement to private enterprise or to
any person or to publicly owned enterprises of a profit-earni-
ng type will be made at rates of interest which shall be appr-
oximately equivalent to those for comparable loans prevailing
in the Republic of China. The Government further agrees that,
except for any loans which it may make to publicly owned ente-
rprises of a profit-earning type, no funds received under this
loan agreement will be appropriated or transferred directly or
indirectly to a publicly owned enterprise of a profit-earning
type.
7 The Government agrees that the New Taiwan dollars received by
the United States, pursuant to the provisions of paragraph 4
and 5 hereof, may be used by the United States for any expend-
itures of or payments by the United States in the Republic of
China or its territories. The United States agrees to take in-
to account the economic position of the Republic of China in
connection with all such expenditures or payments. The Govern-
ment further agrees that it will provide facilities for the c-
onversion by the United States of two percent (2%) of the New
Taiwan dollars received by the United States, pursuant to the
provisions of paragraphs 4 and 5 hereof, into other currencies
as the United States deems necessary t help develop new marke-
ts for United States agricultural commodities in such areas as
the United States may determine. In addition the Government a-
grees that any such currency may be used in areas other than
the Republic of China or its territories or converted into ot-
her currencies as may be mutually agreed upon.
8 The Government agrees that the United States may invest any u-
nexpended balances received hereunder in interest-earning obl-
igations or deposits denominated in New Taiwan dollars. The U-
nited States agrees that the Government may purchase for Unit-
ed States dollars all or any part of such unexpended balances
not otherwise committed by the United States at a rate of exc-
hange than mutually agreed upon.
9 Whenever the parties to this Agreement determine that it would
be to their mutual interests to modify any of its provisions,
they may by mutual agreement in writing provide for any such
modification, including the payment of all or any part of pri-
ncipal and interest by the delivery to the United States of (a
) such materials, or (b) such other valuable consideration as
may be mutually agreed upon by the parties hereto.
10 Prior to and as a condition precedent to the first disbursem-
ent under the credit, A.I.D. shall be furnished with:
a. Evidence of authority of the person who has executed this
Agreement and otherwise acts as the representative of the
Government in connection with the credit; and
b. An opinion of the Minister of Justice of the Republic of
China or other legal counsel satisfactory to A.I.D. demon-
strating to the satisfaction of A.I.D. that the Government
has taken all action necessary under its constitutional l-
aws to authorize the contracting of the credit under this
Agreement and that the Agreement constitutes the valid and
binding obligation of the Government in accordance with i-
ts terms.
IN WITNESS WHEREOF, the Government and A.I.D. have caused this
Agreement to be duly executed in duplicate in Washington, Distr-
ict of Columbia, United States of America, on the date first ab-
ove mentioned.
The Government of the Republic of China:
(Signed)
Martin Wong
Economic Minister Counselor
Chinese Embassy
Agency for International Development:
(Signed)
Seymour J.Janow
Assistant Administrator for the Far East
EXHIBIT "A"
SCHEDULE OF PAYMENTS
China 484-G-035
NT$ 37,228,000
40 years 4 yr. grace period
Due Due
Date of Principal Date of Principal
Payment Payment Payment Payment
1 First payment due the first 13,783 34 468,622
day of the calendar month 35 482,405
which is 4 years after the 36 496,188
end of the month in which 37 509,971
the first disbursement is 38 523,754
made. Remaining installmen- 39 537,537
ts payable semi-annually t- 40 551,320
hereafter. 41 565,103
2 27,566 42 578,886
3 41,349 43 592,669
4 55,132 44 606,452
5 68,915 45 620,235
6 82,698 46 634,018
7 96,481 47 647,801
8 110,264 48 661,584
9 124,047 49 675,367
10 137,830 50 689,150
11 151,613 51 702,933
12 165,396 52 716,716
13 179,179 53 730,499
14 192,962 54 744,282
15 206,745 55 758,065
16 220,528 56 771,848
17 234,311 57 785,631
18 248,094 58 799,414
19 261,877 59 813,197
20 275,660 60 826,980
21 289,443 61 840,763
22 303,226 62 854,546
23 317,009 63 868,329
24 330,792 64 882,112
25 344,575 65 895,895
26 358,358 66 909,678
27 372,141 67 923,461
28 385,924 68 937,244
29 399,707 69 951,027
30 413,490 70 964,810
31 427,273 71 978,593
32 441,056 72 992,376
33 454,839 73 1,006,276
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37,228,000