The Government of the Republic of China and the Government of t-
he Republic of Macedonia (hereinafter referred to as the "Contr-
acting Parties"), Recognizing the friendly relations betwzen the
two Govenlmentss and their iespective peoples, and Desiring to
promote and develop these amicabie relations, and Being aware of
their common interests resulting from encouraging and promoting
economic development in the two countries, and Recognizing the
benefits they will gain fiom their closet economic cooperation.
Have agreed as follows:

Article 1
The Republic of China-Republic of Macedonia Economic Development
Fund will be established with a Board of Directors from the two
countries to coordinate econmic development cooperation-programs
;

Article 2
A Technical Mission consisting of experts from the Republic of
China will be established in Macedonia to assist in the areas of
export promotion, investment selection. enterprises development,
investment approval simplification and agricultural development;

Article 3
An appropriate financing scheme for developing the Macedonian p-
rivate sector, in the forlll Of long-term concessionary credits
and equity investinents will be provided by the Republic of Chi-
na to sinall and medium enterprises, private farmers and microe-
nterprises;

Article 4
The Republic of China will urge the European Bank for Reconstru-
ction and Development (EBRD) to apply the proceeds of Internati-
onal Cooperation and Development Fund's contribution to the EBRD
Financial Intermediary Investment Special Fund for investments
in sound private projects in Macedonia and to use the Taipei Ch-
ina-EBRD Technical Cooperation Fund in appraisals of the invest-
ment projects;

Article 5
The Republic of China agrees to open its market to goods produc-
ed or manufactured in Macedonia on a preferential basis, under
the frameworic of World Trade Organization, and the Macedonla r-
ecognizes the importance of priivate Sector investments from the
Republic of China. Both Contracting Parties agree to talte imme-
diate steps to complete negotiations on a Free Trade Agreemement
, Investment Protection Agreement and Agreelnent on Avoidance of
Double Taxation and other necessary agreennents for better and
wider cooperation between the two countries;

Article 6
Both Contracting Parties hereby agree to ed-operate in the fiel-
ds of technology transfer and investment between industries of
both countries based on the principles of equity, non-discrimin-
ation and mutual benefrt in the foilowing manner:
(1) Investment and technological development between companies
of both countries are to be promoted through the exchange of
information, assistance to the potential direct investment
into both countries, establishing of joint ventures etc., by
utilizing the information resources of both Contracting Par-
ties on the activities of private companies in their areas.
(2) Both Contracting Parties will respectively encourage and as-
sist their firms to set up production facilities, especially
focusing in textile, leather, and electronic technology ind-
ustry, in the territory of the other party.
(3) Both Contracting Parties will assist and promote the visits
of investment missions between both countries, and take not-
ice to extend co-opeiation and assistance recommended by the
other party.
(4) A framework is to be established between the Contracting Pa-
rties to discuss the most effective means by which to execu-
te the types of co-operation outlined herein in a manner co-
nsistent with their objectives.
(5) While both Contracting Parties wvill endeauour to promote t-
he typrs of cooperation arising from this agreemeet, for the
benefit of companies in both countries, it is understood th-
at this does not exclude either of the two Contracting Part-
ies from entering into similar agreements with any other pa-
rty or parties.
(6) Both Contracting Parties are fully aware that any decision
made by residents and companies of the private sector from
both countries in favour of the said facilities mentioned a-
bove is exclusively the result of a private business initia-
tive, and both parties do not take any legal reponsihiiity
in this regard.
(7) Neither Contracting Party shall have any financial obligati-
on towards others except for the reimbursemknt of expenses
relating to specific actions mutually agreed upon.

Article 7
Regarding human resources development, the Contracting Parties
agree to further determine ways of implementation of following
programs involving:
(1) Professional training for Macedonians in the Republic of Ch-
ina on development and technical subject matters;
(2) A poverty-oriented scholarship program for primary school p-
upils in Macedonia and scholarship for Chinese language stu-
dy in the Republic of China;
(3) Training of young Macedonians in small and mediumm enterpri-
ses in the depublic of China so that upon the completion of
training, they would be equipped with skills and a small am-
ount of capital to start their own business in Macedonia; a-
nd
(4) Experts and ecluipment (e. g. computer hardware and software
) to assist Macedonian government agencies in improving the-
ir capacity to carry out their respective functions;
(5) A feasibility study for corn puterizati on process for prim-
ary and secondary schools in the Republic of Meacedonia.

Article 8
Being desirous of the effective iplementation of this Agreement,
the Contracting Parties have agree to form a permanent Joint Co-
mmittee. including representatives of each Party. which will ho-
ld alternate annual meeting in each of teh two countries or when
the necessity so dictates. for consultation and agreement on de-
velopment projects and the necessary procedures to implement and
folowup Agreement.

Article 9
The Agreement neters int oforce upon the date of the signature.
Each Contracting party shll notify the other through diplomatic
channels that the necessary procedure, according to the dmonest-
ic legislative, had been fulfilled.

Article 10
The validity of this Agreement shall be for a period of five ye-
ars, automatically renewable for similar periods unless either
Party shall, begore six months of the termination of this Agree-
ment, notify the other Party in writing of its desire to termin-
ate this Agreement.

Article 11
In the event of the termination of this Agreement, the validity
of its provisions regarding the projects already agreed upon un-
der this Agreement shall be discussed by the twoe Governments,
unless there are other trmination conditions regulated by the P-
rojects.

Article 12
The Memorandum of Understanding on Economic Development Coopera-
tion between the Government of the Republic of China and the Go-
vernment of the Repbulic of Macedonia signed on March 5,1999 in
Skopje, shall be superseded by this agreement after this Agreem-
ent enters into force.

IN WITNESS WHEREOF the undersigned, being duly authorized by th-
eir respective Governments, have signed this Agreement.

Done at Tajpei in duplicate, in the Chinese, Macedonian and Eng-
lish languages, all three texts being equally authentic, this 9
th day of the sixth tlionth of the eighty-eighth year of the Re-
public of China, corresponding to the 9th day of the sixth month
of the year one thousand nine hundred and ninety-nine. In case
of any divergence of interpretation, the English text shall pre-
vail.

For the Government of For the Government of
the Republic of China the Republic of Macedonia



Vincent S. Slew Ljubco Georgievski
Premier Premier