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Exchange of Notes between the Government of Canada and the Government of Ceylon constituting an Agreement between the two Governments concerning their Co-Operation Programme for the Development of Ceylon [1970] CATSer 8 (15 August 1970)

E101137 - CTS 1970 No. 23

EXCHANGE OF NOTES BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF CEYLON CONSTITUTING AN AGREEMENT BETWEEN THE TWO GOVERNMENTS CONCERNING THEIR CO-OPERATION PROGRAMME FOR THE DEVELOPMENT OF CEYLON

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The High Commissioner for Canada to the Permanent Secretary of the Ministry of Planning and Employment of Ceylon

COLOMBO, August 15, 1970

No. L-422

Dr. H. A. de S. Gunasekera,
Permanent Secretary,
Ministry of Planning & Employment,
Colombo

Sir,

I have the honour to refer to discussions held recently between representatives of the Ceylonese and Canadian Governments with a view to the conclusion of an agreement between the two Governments concerning their co-operative programme for the development of Ceylon. You will recall the earlier exchange of notes between our two Governments in 1952 concerning the co-operative development of Ceylon. In view of the expansion and diversification of Canada's programmes of assistance in Ceylon it is considered expedient to conclude a new agreement setting out the agreed principles of the two Governments for co-operative economic and social development.

Attached hereto is a Statement of Principles concerning the co-operation of the two Governments in the development of Ceylon. If the Government of Ceylon concurs in this Statement, it is suggested that the present Note which together with its annex is authentic in English and French and your reply to that effect shall constitute an agreement between our two governments, giving effect to the Statement which shall enter into force on the date of your reply. The agreement shall remain in force for three years and shall continue in force for further periods of three years unless one or the other of the Contracting Parties gives notice of termination at least six months prior to the end of any such three-year period in which case it shall expire at the end of that three-year period.

Accept, Sir, the renewed assurances of my highest consideration.

John Timmerman

High Commissioner

STATEMENT OF PRINCIPLES AGREED BY THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF CEYLON CONCERNING THE COOPERATION OF THE TWO GOVERNMENTS IN THE DEVELOPMENT OF CEYLON

The Governments of Canada and Ceylon, wishing to cooperate for their mutual benefit in the promotion of the development of Ceylon, establish the following principles to govern the provision of social and economic development assistance by the Government of Canada to the Government of Ceylon.

1. The assistance provided by the Government of Canada to the Government of Ceylon shall consist of goods and services in accordance with specific programmes and projects agreed upon from time to time between the two Governments.

2. The goods and services provided by the Government of Canada to the Government of Ceylon shall be financed by grant funds or by funds made available pursuant to loans the terms of which shall be agreed upon from time to time between the two Governments. The Government of Ceylon undertakes to repay such loans in accordance with the terms of repayment specified in loan agreements concluded with respect to such loans pursuant to paragraph three (b) hereof.

3. In pursuance of the objectives of this Statement, the Government of Canada and the Government of Ceylon, acting directly or through their appropriate agencies, may conclude from time to time subsidiary arrangements, evidenced by letters, notes or memoranda in writing, relating to the following matters:

(a) the responsibilities of each government with respect to the support and conditions of service of officers and employees of Canadian firms, teachers advisers and other technical assistance personnel and their dependants assigned by the Government of Canada to serve in Ceylon in response to requests of the Government of Ceylon,

(b) the amount, purposes, terms and conditions of development loans made by the Government of Canada to the Government of Ceylon,

(c) the establishment of counterpart fund accounts and the conditions governing payment into and out of such accounts,

(d) such other matters which may enable the two Governments to pursue jointly the objectives set forth in this statement.

4. The following basic principles shall govern the provision of Canadian Development Assistance to Ceylon:

(a) except as may be otherwise agreed by the Parties from time to time in relation to specific projects, costs incurred in Ceylon shall be the responsibility of the Government of Ceylon.

(b) except as may be otherwise agreed by the Parties from time to time in relation to specific projects, the cost of transportation of goods from a seaport in Canada to and within Ceylon shall be the responsibility of the Government of Ceylon. The cost of goods lost or damaged, during transportation from Canada to Ceylon, will be met by releases of foreign exchange for the replacement of such goods from Canada.

(c) the Government of Ceylon shall indemnify Canadian firms and their officers and employees as well as Canadian teachers, advisers and other technical assistance personnel engaged in the provision of Canadian development assistance under an agreed programme or project against civil liability for acts performed in the execution of such programme or project other than such acts as are criminal or fraudulent,

(d) the Government of Ceylon shall exempt Canadian firms and their officers and employees as well as Canadian teachers, advisers and other technical assistance personnel and their dependants engaged in the provision of Canadian development assistance under an agreed programme or project from resident and local taxes, income tax, other taxes, as well as the necessity for filing income tax returns, on payments from the proceeds of Canadian Government grants or loans and on income earned outside Ceylon,

(e) the Government of Ceylon shall exempt Canadian firms and their officers and employees as well as Canadian teachers, advisers and other technical assistance personnel and their dependants engaged in the provision of Canadian development assistance under an agreed programme or project from import, customs and other duties and taxes on necessary professional and technical equipment and reasonable quantities of personal and household effects within the limits prescribed for experts provided under C. Plan and by the U.N., provided that such taxes shall be paid according to applicable Ceylon laws and regulations in respect of any such equipment or effects sold in Ceylon to anyone not entitled to equivalent exemptions.

5. Subsidiary arrangements concluded in accordance with paragraph 3 of this Statement shall, unless the text thereof expressly states the contrary, be considered to be administrative arrangements only and not formal agreements binding in international or domestic law. Difference or disputes arising in the implementation of such arrangements or the interpretation of provisions of the memoranda embodying them shall be settled by negotiation between the two Governments or in such other manner as may be agreed upon from time to time by the Governments.

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The Permanent Secretary of the Ministry of Planning and Employment to the High Commissioner for Canada

August 15, 1970

His Excellency John Timmerman,
High Commissioner for Canada in Ceylon

Excellency,

I have the honour to refer to your Note No. L-422 of August 15, 1970 to which was attached a "Statement of Principles Agreed by the Government of Canada and Government of Ceylon concerning the Co-operation of the two Governments in the Development of Ceylon".

I wish to inform you that the Government of Ceylon concurs in the Statement and agrees that Your Excellency's Note and the present reply, which will be authentic in Sinhala and English, shall constitute an agreement between our two Governments, giving effect to the Statement, which shall enter into force on this date.

Accept, Excellency, the renewed assurances of my highest consideration.

H. A. de S. Gunasekera

Permanent Secretary
Ministry of Planning and Employment