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 forInternational Development (hereinafter referred to as “A.I.D.”),an agency of the Government of the United States of America (he-reinafter referred to as “United States”).WITNESSETH:WHEREAS, in accordance with the provisions of the AgriculturalTrade Development and Assistance Act of 1954, as amended, and p-ursuant to the provisions of the amendment of November 15, 1961to the Agricultural commodities Agreement between the United St-ates and the Government dated July 21, 1961 (hereinafter referr-ed to as the “Commodities Agreement”), a determination has beenmade to extend an additional credit to the Government for credi-t purposes pursuant to Article Ⅱ,paragraph 1(d) of the Commodi-ties Agreement in amount estimated at Eighty Million Six HundredForty Thousand New Taiwan Dollars (NT$80,640,000) to the extentadditional New Taiwan dollars become available, but not in exce-ss of seventeen percent (17%) of additional New Taiwan dollar p-roceeds agreed to be deposited under Article Ⅲ ofthe Commoditi-es Agreement.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 Seventeen Percent (17%) of the New Taiwan dollar proceeds accruing under the commodities Agreement, her- eby estimated as Eighty Million Six Hundred Forty Thousand New Taiwan Dollars (NT$80,640,000), to assist in financing projec- ts or such other economic development purposes as may be from time to time agreed upon by the Government and the Administra- tor of A.I.D.(hereinafter referred to as the “Administrator”); provided that none of said proceeds shall be disbursed under the credit after November 14, 1964 unless agreement by the Go- vernment and the Administrator as to their use has been re- ached 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 Eighty Million Six Hundred Forty Thousand New Taiwan Dollars (NT$80,6 40,000), or as many New Taiwan dollars as may be advanced aga- inst this line of credit, in installments as set 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 installments, begin- ning four (4) years after the end of the month in which the f- irst disbursement is made by the Administrator to the Governm- ent under this Agreement, in amounts and at the time set forth in Exhibit A. Should the amount disbursed exceed said princip- al sum, proportionate adjustments shall be made in the instal- lments shown in Exhibit A. Should the amount disbursed fall s- hort of said principal sum by more than ten percent (10%) pro- portionate adjustments shall be made in the installments shown in Exhibit A; should the amount disbursed fall short by ten p- ercent (10%) or less, the deficiency shall be deducted from t- he last installment or installments shown in Exhibit A. Inter- est 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 beginning six (6) months from that time. In event of default in the prompt and full payment hereunder of principal or interest, the entire u- npaid principal hereof and interest 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 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 provisions of Article Ⅱ, paragraph 1(d) thereof. Such disbursements shall be advances under this line of credit as of the date of each periodic sta- tement rendered by the Administrator to the Government report- ing such disbursements. A.I.D. shall endorse upon this Agreem- ent 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 execise the option to make payments in dollars, the amount of any such payment s- hall be calculated at the time of payment to be equivalent to the obligation in New Taiwan dollars computed on the followin- g 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 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 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 cl- culated 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 profiteering 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 i- nto 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 States may invest any u- nexpended balances received hereunder in interestearning obli- gations or deposits denominated in New Taiwan dollars. The Un- ited States agrees that the Government may purchase for United States dollars all or any part of such unexpended balances not otherwise committed by the United States at a rate of exchange 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 satisfacttion of A.I.D. that the Governme- nt has taken all action necessary under its constitutional laws 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 thisAgreement to be duly executed in duplicate in Washington, Distr-ict of Columbia, United States of America, on the date firstabove mentioned.The Government of the China:(Signed)Martin WongEconomic Minister CounselorChinese EmbassyAgency for International Development:(Signed)Seymour J.JanowAssistant Administrator for the Far EastEXHIBIT “A”SCHEDULE OF PAYMENTSChina 484-G-034NT$ 80,640,00040 years 4 year grace periodDue DueDate of Principal Date ofPrincipalPayment Payment Payment Payment1 First payment due the first 29,900 38 1,136,200 day of the calendar month 39 1,166,100 which is 4 years after the 40 1,196,000 end of the month in which 41 1,225,900 the first disbursement is 42 1,255,800 made. Remaining installmen- 43 1,285,700 ts payable semi-annually t- 44 1,315,600 hereafter. 45 1,345,5002 59,800 46 1,375,4003 89,700 47 1,405,3004 119,600 48 1,435,2005 149,500 49 1,465,1006 179,400 50 1,495,5007 209,300 51 1,524,9008 239,200 52 1,554,8009 269,100 53 1,584,70010 299,000 54 1,614,60011 328,900 55 1,644,50012 358,800 56 1,674,40013 388,700 57 1,704,30014 418,600 58 1,734,20015 448,500 59 1,764,10016 478,400 60 1,794,00017 508,300 61 1,823,90018 538,200 62 1,853,80019 568,100 63 1,883,70020 598,000 64 1,913,60021 672,900 65 1,943,50022 657,800 66 1,973,40023 687,700 67 2,003,30024 717,600 68 2,033,20025 747,500 69 2,063,10026 777,400 70 2,093,00027 807,300 71 2,122,90028 837,200 72 2,152,80029 867,100 73 2,062,80030 897,000 __________31 926,900 80,640,00032 956,80033 986,70034 1,016,60035 1,046,50036 1,076,40037 1,106,300