Mr. Māris Riekstiņš
State Secretary
Ministry of Foreign Affairs
Republic of Latvia

Riga, November 20, 2003

Sir,

I have the honour to refer to the recent discussions held between the representatives of the Government of Japan and of the Government of the Republic of Latvia concerning the supply of equipment for preservation of documents (hereinafter referred to as "the Equipment") to Latvian State Archive of Film, Photo and Audio Documents, and to propose on behalf of the Government of Japan the following arrangements:

1. For the purpose of contributing to the promotion of cultural activities in the Republic of Latvia, the Government of Japan shall extend to the Government of the Republic of Latvia, in accordance with the relevant laws and regulations of Japan, a grant up to twenty-four million five hundred thousand yen (ī24, 500, 000) (hereinafter referred to as "the Grant").

2. The Grant shall be made available during the period between the date of coming into force of the present arrangements and March 31, 2004, unless the period is extended by mutual agreement between the authorities concerned of the two Governments.

3. (1) The Grant shall be used by the Government of the Republic of Latvia properly and exclusively for the purchase of the Equipment, which shall be products of Japan or the Republic of Latvia, and of services relating to procurement of such products, including the transportation of the Equipment to ports in the Republic of Latvia.

(2) Notwithstanding the provisions of sub-paragraph (1) above, when the two Governments deem it necessary, the Equipment which are products of countries other than Japan or the Republic of Latvia may be purchased under the Grant.

4. The Government of the Republic of Latvia or its designated authority shall enter into contracts in Japanese yen with Japanese nationals for the purchase of the Equipment and services referred to in paragraph 3 (The term "Japanese nationals" whenever used in the present arrangements means Japanese physical persons or Japanese juridical persons controlled by Japanese physical persons.). Such contracts shall be verified by the Government of Japan to be eligible for the Grant.

5. (1) The Government of the Republic of Latvia or its designated authority shall open through banking arrangements an account to be used only for the purpose of the implementation of the Grant, in the name of the Government of the Republic of Latvia in a bank of Japan designated by the Government of the Republic of Latvia or its designated authority.

(2) The Government of Japan shall make payments in Japanese yen to cover the obligations incurred by the Government of the Republic of Latvia or its designated authority under the verified contracts referred to in paragraph 4 above (hereinafter referred to as "the Verified Contracts") to the account referred to in sub-paragraph (1) above, when payment requests are presented by the bank referred to in sub-paragraph (1) above to the Government of Japan under an authorization to pay issued by the Government of the Republic of Latvia or its designated authority.

6. (1) The Government of the Republic of Latvia shall take necessary measures:

(a) to ensure prompt unloading and customs clearance at ports of disembarkation in the Republic of Latvia and internal transportation therein of the Equipment;

(b) to exempt Japanese nationals from customs duties, internal taxes and other fiscal levies which may be imposed in the Republic of Latvia with respect to the supply of the Equipment and services under the Grant;

(c) to accord Japanese nationals whose services may be required in connection with the supply of the Equipment and services under the Verified Contracts such facilities as may be necessary for their entry into the Republic of Latvia and stay therein for the performance of their work;

(d) to ensure that the Equipment be maintained and used properly and effectively; and

(e) to bear all the expenses, other than those covered by the Grant, necessary for the implementation of the Grant.

(2) With regard to the shipping and marine insurance of the Equipment purchased under the Grant, the Government of the Republic of Latvia will refrain from imposing any restrictions that may hinder fair and free competition among the shipping and marine insurance companies.

(3) The Equipment purchased under the Grant shall not be re-exported from the Republic of Latvia.

7. The two Governments shall consult with each other in respect of any matter that may arise from or in connection with the present arrangements.

I have further the honour to propose that the present Note and your Note in reply confirming on behalf of the Government of the Republic of Latvia the foregoing arrangements shall be regarded as constituting an agreement between the two Governments, which shall enter into force on the date of your Note in reply.

I avail myself of this opportunity to renew to you the assurance of my high consideration.

Toru Nagatsuka
Charge d'Affaires a.i.
Embassy of Japan
to the Republic of Latvia

Mr. Toru Nagatsuka
Charge d'Affaires a.i.
Embassy of Japan
to the Republic of Latvia

No. 25/1041-8969

Sir,

I have the honour to acknowledge the receipt of your Note of today's date, which reads as follows:

I have the honour to refer to the recent discussions held between the representatives of the Government of Japan and of the Government of the Republic of Latvia concerning the supply of equipment for preservation of documents (hereinafter referred to as "the Equipment") to Latvian State Archive of Film, Photo and Audio Documents, and to propose on behalf of the Government of Japan the following arrangements:

1. For the purpose of contributing to the promotion of cultural activities in the Republic of Latvia, the Government of Japan shall extend to the Government of the Republic of Latvia, in accordance with the relevant laws and regulations of Japan, a grant up to twenty-four million five hundred thousand yen (ī24, 500, 000) (hereinafter referred to as "the Grant").

2. The Grant shall be made available during the period between the date of coming into force of the present arrangements and March 31, 2004, unless the period is extended by mutual agreement between the authorities concerned of the two Governments.

3. (1) The Grant shall be used by the Government of the Republic of Latvia properly and exclusively for the purchase of the Equipment, which shall be products of Japan or the Republic of Latvia, and of services relating to procurement of such products, including the transportation of the Equipment to ports in the Republic of Latvia.

(2) Notwithstanding the provisions of sub-paragraph (1) above, when the two Governments deem it necessary, the Equipment which are products of countries other than Japan or the Republic of Latvia may be purchased under the Grant.

4. The Government of the Republic of Latvia or its designated authority shall enter into contracts in Japanese yen with Japanese nationals for the purchase of the Equipment and services referred to in paragraph 3 (The term "Japanese nationals" whenever used in the present arrangements means Japanese physical persons or Japanese juridical persons controlled by Japanese physical persons). Such contracts shall be verified by the Government of Japan to be eligible for the Grant.

5. (1) The Government of the Republic of Latvia or its designated authority shall open through banking arrangements an account to be used only for the purpose of the implementation of the Grant, in the name of the Government of the Republic of Latvia at a bank in Japan designated by the Government of the Republic of Latvia or its designated authority.

(2) The Government of Japan shall make payments in Japanese yen to cover the obligations incurred by the Government of the Republic of Latvia or its designated authority under the verified contracts referred to in paragraph 4 above (hereinafter referred to as "the Verified Contracts") to the account referred to in sub-paragraph (1) above, when payment requests are presented by the bank referred to in sub-paragraph (1) above to the Government of Japan under an authorization to pay issued by the Government of the Republic of Latvia or its designated authority.

6. (1) The Government of the Republic of Latvia shall take necessary measures:

(a) to ensure prompt unloading and customs clearance at ports of disembarkation in the Republic of Latvia and internal transportation therein of the Equipment;

(b) to exempt Japanese nationals from customs duties, internal taxes and other fiscal levies which may be imposed in the Republic of Latvia with respect to the supply of the Equipment and services under the Grant;

(c) to accord Japanese nationals whose services may be required in connection with the supply of the Equipment and services under the Verified Contracts such facilities as may be necessary for their entry into the Republic of Latvia and stay therein for the performance of their work;

(d) to ensure that the Equipment be maintained and used properly and effectively; and

(e) to bear all the expenses, other than those covered by the Grant, necessary for the implementation of the Grant.

(2) With regard to the shipping and marine insurance of the Equipment purchased under the Grant, the Government of the Republic of Latvia shall refrain from imposing any restrictions that may hinder fair and free competition among the shipping and marine insurance companies.

(3) The Equipment purchased under the Grant shall not be re-exported from the Republic of Latvia.

7. The two Governments shall consult with each other in respect of any matter that may arise from or in connection with the present arrangements.

I have further the honour to confirm on behalf of the Government of the Republic of Latvia the foregoing arrangements and to agree that your Note and this Note in reply shall constitute an agreement between the two Governments, which shall enter into force on the date of this Note in reply.

I avail myself of this opportunity to extend to you the assurance of my high consideration.

November 20, 2003

Māris Riekstiņš
State Secretary
Ministry of Foreign Affairs
Republic of Latvia

Agreed Minutes on Procedural Details

With reference to paragraphs 1, 3, 4 and 5 of the Exchange of Notes between the Government of the Republic of Latvia and the Government of Japan dated November 20, 2003 (hereinafter referred to as "the Exchange of Notes"), concerning the Japanese cultural cooperation for the supply of equipment for preservation of documents (hereinafter referred to as "the Equipment") to Latvian State Archive of Film, Photo and Audio Documents, the representatives of the Government of the Republic of Latvia and the Government of Japan wish to record the following procedural details which have been agreed upon between the authorities concerned of the two Governments:

1. Tender

(1) The Grant shall be used efficiently and non-discriminately for the purchase of the Equipment and services referred to in paragraph 3 of the Exchange of Notes. In order to ensure compliance with such requirements, it is required that the Government of the Republic of Latvia or its designated authority employ an independent and competent agent for assisting the Government of the Republic of Latvia or its designated authority to conduct the tender for the Equipment.

The Government of the Republic of Latvia or its designated authority shall, therefore, conclude a contract referred to in paragraph 4 of the Exchange of Notes, within one month after the date of coming into force of the Exchange of Notes, with Japan International Cooperation System (JICS) (hereinafter referred to as "the Agent") to assist the Government of the Republic of Latvia or its designated authority in accordance with the Scope of the Agent's Services as set forth in Appendix.

(2) The said contract shall become effective upon the verification of the Government of Japan in a written form.

2. The Agent's fee

(1)The amount mentioned in paragraph 1 of the said Exchange of Notes shall include the Agent's fee.

(2)The Government of the Republic of Latvia or its designated authority shall issue an authorization to pay, in accordance with the above-mentioned contract, to the bank referred to in sub-paragraph (1) of paragraph 5 of the Exchange of Notes.

3. Any official of the Government of the Republic of Latvia shall not undertake any part of the Japanese national's work of purchase of the Equipment and services mentioned in paragraph 4 of the above-mentioned Exchange of Notes.

4.When the plan and/or design of the Grant mentioned in paragraph 1 of the above-mentioned Exchange of Notes is to be modified, the Government of the Republic of Latvia shall have a prior consultation with and obtain the consent to the modification of the Government of Japan.

Māris Riekstiņš	Toru Nagatsuka
State Secretary	Charge d'Affaires a.i
Ministry of Foreign Affairs	Embassy of Japan
Republic of Latvia	to the Republic of Latvia

Appendix

Scope of the Agent's Services

1. Preparation of the list of the products to be tendered (hereinafter referred to as "the Equipment") on the basis of the request which was submitted in a written form to the Embassy of Japan to the Republic of Latvia by the Government of the Republic of Latvia or its designated authority.

2. Surveying the cost and specifications of the Equipment and determining the ceiling price of the tender.

3. Preparation of the draft of tender documents which include terms and conditions of the tender and the technical specifications.

4. Making the public notice of the tender and distributing the tender documents.

5. Assisting the Government of the Republic of Latvia or its designated authority to open tender at the office of the Agent in the presence of the representatives of the tenderers and to evaluate the tender and to determine the successful tenderer.

6. Preparation of the tender evaluation report in English language and submission of the report to the Government of the Republic of Latvia or its designated authority.

Record of Discussions

In connection with the Exchange of Notes dated November 20, 2003 concerning the Japanese cultural cooperation for the supply of equipment for preservation of documents to Latvian State Archive of Film, Photo and Audio Documents (hereinafter referred to as "the Exchange of Notes"), the representatives of the Latvian Delegation and of the Japanese Delegation wish to record the following:

1. With regard to sub-paragraph (1) of paragraph 3 of the Exchange of Notes, the representative of the Japanese Delegation stated that the Government of Japan understands that the Government of the Republic of Latvia will take necessary measures to prevent any offer, gift or payment, consideration or benefit which would be construed as a corrupt practice in the Republic of Latvia from being made as an inducement to or reward for the award of the contracts referred to in paragraph 4 of the Exchange of Notes.

2.The representative of the Latvian Delegation stated that his Delegation has no objection to the statement by the representative of the Japanese Delegation referred to above.

Māris Riekstiņš	Toru Nagatsuka
State Secretary	Charge d'Affaires a.i
Ministry of Foreign Affairs	Embassy of Japan
Republic of Latvia	to the Republic of Latvia