The Agreement made and entered into as of the twelfth day of Ma-
rch 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."
), and 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 amendments of May 25 and June 9
, 1962 to the Agricultural Commodities Agreement between the Un-
ited States and the Government dated April 27, 1962, as amended,
(hereinafter referred to as the "Commodities Agreement"), a det-
ermination has been made to extend an additional credit to the
Government, in an amount estimated at One Hundred Fifty Five M-
illion Seven Hundred Thirty Seven Thousand New Taiwan Dollars (
NT$155,737,000) to the extent that additional New Taiwan dollars
become available for credit purposes pursuant to Article Ⅱ, p-
aragraph 3 of the Commodities Agreement but not in excess of Th-
irty-One percent (31%) of the additional New Taiwan dollar proc-
eeds agreed to be deposited under Article Ⅲ of the Commodities
Agreement and;
WHEREAS, the terms and conditions of this Agreement are consist-
ent with the terms and conditions established by the National A-
dvisory Council on International Monetary and Financial Problems
;
NOW, THEREFORE, it is agreed that:
1 A. I. D. hereby establishes in favor of the Government a line
of credit not exceeding Thirty-One percent (31%) of the New T-
aiwan dollar proceeds accruing under the Commodities Agreemen-
t, hereby estimated as One Hundred Fifty Five Million Seven H-
undred Thirty Seven Thousand New Taiwan Dollars (NT$ 155,737,0
00), to assist in financing projects or such other economic d-
evelopment purposes as may from time to time agreed upon by t-
he Government and the Administrator of A.I.D. (hereinafter re-
ferred to as the "Administrator"); provided that none of said
proceeds shall be disbursed under the credit after June 8, 196
5 unless agreement by the Government and the Administrator as
to their 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 One Hu-
ndred Fifty Five Million Seven Hundred Thirty Seven Thousand
New Taiwan Dollars (NT$ 155,737,000), or as many New Taiwan d-
ollars as may be advanced against this line of credit, in ins-
tallments as set forth in the Schedule of Payments attached h-
ereto and made a part hereof as Exhibit A, and to pay a credit
fee at the rate of three-quarters of one percent (3/4%) per a-
nnum on the unpaid principal balance as specified below. The
principal shall be paid in semiannual installments, beginning
three (3) years after the end of the month in which the first
disbursement is made by the Administrator to the Government u-
nder this Agrreement, in amounts and at the time set forth in
Exhibit A. Should the amount disbursed exceed said principal
sum, proportionate adjustments shall be made in the installme-
nts shown in Exhibit A. Should the amount disbursed fall short
of said principal sum by more than ten percent (10%) proporti-
onate adjustments shall be made in the installments shown in
Exhibit A; should the amount disbursed fall short by ten perc-
ent (10%) or less, the deficiency shall be deducted from the
last installment or installments shown in Exhibit A. Credit
fee on the outstanding balance of principal shall begin at the
end of the month in which the first disbursement is made, such
credit fee to be paid semi-annually thereafter beginning six (
6) months from that time. In event of default in the prompt a-
nd full payment hereunder of principal or credit fee, the ent-
ire unpaid principal hereof and credit fee thereon shall beco-
me due and payable upon demand of A.I.D. The nonexercise 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 prvisions of Article Ⅱ, p-
aragraph 3 thereof. Such disbursements shall be advances under
this line of credit as of the date of each periodic statement
rendered by the Administrator to the Government reporting such
disbursements. A. I. D. shall endorse upon this Agreement the
amount of the New Taiwan dollars so advanced.
4 Payments of credit fee and principal required to be made by t-
he 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 t-
he option to make payments in dollars, the amount of any such
payment shall be calculated at the time of payment to be equi-
valent 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 payment obligations abro-
ad, provided effective rates for New Taiwan dollars differ-
ing by more than one percent from the pay value agreed with
the International Monetary Fund for that currency are not
permitted by the Government and provided the parties to th-
is 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.
Credit fee 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 to the Secretary of the Treasury of the U-
nited States to be held through such officer or officers of
the United States as may be designated by the Secretary of the
Treasury.
5 The Government, without penalty or premium, may make prepayme-
nts of principal on this loan in New Taiwan dollars or , at t-
he option of the Government, in United States dollars computed
on the date any such prepayment is made at a rate of exchange
calculated as provided in Section 4 hereof, Any prepayments m-
ade by the Government shall apply to the principal installmen-
ts 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 to help develop new mark-
ets for United States agricultural commodities in such areas
as the United States may determine. In addition the Government
agrees 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 Stated 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 ex-
change 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. dem-
onstrating to the satisfaction of A. I. D. that the Gover-
nment has taken all action necessary under its constituti-
onal laws to authorize the contracting of the credit under

this Agreement and that the Agreement constitutes the val-
id and binding obligation of the Government in accordance
with its 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 Administral or for the Far East
EXHIBIT "A"
SCHEDULE OF PAYMENTS
China 484-G-036
NT$ 155,737,000
30 years 3 years grace period
Due Due
Date of Principal Date of Principal
Payment Payment Payment Payment
1 First payment due the first 101,128 25 2,528,000
day of the calendar month 26 2,629,328
which is 3 years after the 27 2,730,456
end of the month in which 28 2,831,584
the first disbursement is 29 2,932,712
made. 30 3,033,840
Remaining installments 31 3,134,968
payable semi-annually 32 3,236,096
thereafter. 33 3,337,224
2 202,256 34 3,438,352
3 303,384 35 3,539,480
4 404,512 36 3,640,608
5 505,640 37 3,741,736
6 606,768 38 3,842,864
7 707,896 39 3,943,992
8 809,024 40 4,045,120
9 910,152 41 4,146,248
10 1,011,280 42 4,247,376
11 1,112,408 43 4,348,504
12 1,213,536 44 4,449,632
13 1,314,664 45 4,550,760
14 1,415,792 46 4,651,888
15 1,516,920 47 4,753,016
16 1,618,048 48 4,854,144
17 1,719,176 49 4,955,272
18 1,820,304 50 5,056,400
19 1,921,432 51 5,157,528
20 2,022,560 52 5,258,656
21 2,123,688 53 5,359,784
22 2,224,816 54 5,460,912
23 2,325,944 55 5,561,920
24 2,427,072 ___________
155,737,000