This Agreement made and entered into as of the fourth day of Oc-
tober 1963 by and between the Government of the Republic of Chi-
na (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 Sates 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
pu-
rsuant to the provisions of Agricultural Commodities Agreement
between the United States and the Government dated November 19,
1962,(hereinafter referred to as the "Commodities Agreement"), a

determination has been made to extend credit to the Government
in an amount estimated at Five Hundred Thirty Seven Million Sev-
en Hundred Eighty Four Thousand New Taiwan Dollars (NT$537,784,0

00), to the extent that New Taiwan dollars become available for
credit purposes pursuant to Article ,Ⅱ, paragraph 4 of the Com-
modities Agreement but not in excess of Twenty-Six percent (26%)
of the new Taiwan dollar proceeds agreed to be deposited under
Article Ⅲ of the Commodities Agreement and;
WHEREAS, the terms and conditions of this Agreement are
consiste-
nt with the terms and conditions established by the National Ad-
visory 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 Twenty-Six percent (26%) of the New T
aiwan dollar proceeds accruing under the Commodities Agreemen-

t, hereby estimated as Five Hundred Thirty Seven Million Seven
Hundred Eighty Four Thousand New Taiwan Dollars (NT$ 537,784,
000), to assist in financing projects or such other economic
development purposes as may be from time to time agreed upon
by the Government and A. I. D.; provided that none of said pr-
oceeds shall be disbursed under the credit after November 18,
1967 unless agreement by the Government and A. I. D. as to th-
eir use has been reached prior to such date.
2 For value received the Government hereby promises to pay to A.
I.D., it usccessors or assigns, the principal sum of Five Hun-
dred Thirty Seven Million Seven Hundred Eighty Four Thousand
New Taiwan Dollars (NT$ 537,784,000), 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 here of as Exhibit A, and to pay a cred-
it fee at the rate of three quarters (3/4) of one percent per
annum on the unpaid principal balance as specified below. The
principal shall be paid in fifty five (55) equal semiannual i-
nstallments, beginning three (3) years after the end of the m-
onth in which the first disbursement is made by A. I. D. to t-
he Government under this Agreement, in amounts and at the time
set forth in Exhibit A. Should the amount disbursed exceed sa-
id 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. The credit fee on the outstanding balance of principal
shall begin at the end of the month in which the first disbur-
sement is made, such credit fee to be paid semiannually there-
after beginning six (6) months from that time. In event of de-
fault in the prompt and full payment hereunder of principal or
credit fee, the entire unpaid principal hereof and credit fee
thereon shall become due and payable upon demand of A.I.D. The
nonexercise by A.I.D of such right at any time shall not cons-
titute 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 provisions of Article Ⅱ,
paragraph 4 thereof. Such disbursements shall be advances und-
er this line of credit as of the date of each periodic statem-
ent rendered by A. I. D. to the Government reporting such dis-
bursements. A. I. D. shall endorse upon this Agreement the am-
ount of the New Taiwan dollars so advanced.
4 Payments of credit fee and principal required t 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 dollar 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 to 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; Trea-
sury.
5 The Government without penalty or premium, may make prepaymen-
ts 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 these 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 expedi-
tures of or payments by the United Stated 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 the United States agricultural commodities in such ar-
eas as the United States may determine. In addition the Gover-
nment agrees that any such currency may be used in areas other
than the republic of China or its territories or converted in-
to other 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 then mutually agreed upon.
9 Whenever the parties to this Agreement determine that it would
be to their mutual interests to modify any of its provision,
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.Jancw
Assistant Administrator
for the Far East
EXHIBIT "A"
SCHEDULE OF REPAYMENTS
Repayment of principal shall be in 55 equal semi-annual install-
ments with the first installment becoming due three years after
the date of first disbursement.
PRINCIPAL
1 Due three years from the NT$9,777,891 28 9,777,891
date of the first disbu- 29 9,777,891
rsement 30 9,777,891
2 9,777,891 31 9,777,891
3 9,777,891 32 9,777,891
4 9,777,891 33 9,777,891
5 9,777,891 34 9,777,891
6 9,777,891 35 9,777,891
7 9,777,891 36 9,777,891
8 9,777,891 37 9,777,891
9 9,777,891 38 9,777,891
10 9,777,891 39 9,777,891
11 9,777,891 40 9,777,891
12 9,777,891 41 9,777,891
13 9,777,891 42 9,777,891
14 9,777,891 43 9,777,891
15 9,777,891 44 9,777,891
16 9,777,891 45 9,777,891
17 9,777,891 46 9,777,891
18 9,777,891 47 9,777,891
19 9,777,891 48 9,777,891
20 9,777,891 49 9,777,891
21 9,777,891 50 9,777,891
22 9,777,891 51 9,777,891
23 9,777,891 52 9,777,891
24 9,777,891 53 9,777,891
25 9,777,891 54 9,777,891
26 9,777,891 55 9,777,891
27 9,777,891