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General Agreement between the Government of Canada and the Government of the Republic of Bolivia concerning Development Co-operation [1977] CATSer 29 (29 December 1977)

E101072 - CTS 1977 No. 38

GENERAL AGREEMENT BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE REPUBLIC OF BOLIVIA CON­CERNING DEVELOPMENT CO-OPERATION

The Government of Canada and the Government of the Republic of Bolivia (hereinafter called "the Government of Bolivia"), wishing to strengthen the existing cordial relations between the two countries and their peoples and moved by the desire to develop a program of co-operation between the two countries in conformity with the objectives of economic and social development of the Government of Bolivia, have agreed to the following:

ARTICLE I

The program of development co-operation shall provide for:

1. the granting of scholarships to citizens of Bolivia for studies and professional training in Canada, Bolivia or a third country;

2. the assignment of Canadian experts, advisers and other specialists to Bolivia;

3. the provision of equipment, materials and other goods required for the execution of co-operation projects in Bolivia;

4. the elaboration of studies and projects designed to contribute to the economic and social development of Bolivia; and

5. any other form of assistance which may be mutually agreed upon.

ARTICLE II

1. To reach the objectives of this Agreement, the Government of Canada and the Government of Bolivia may conclude subsidiary arrangements or loan agreements in respect of specific projects involving one or several components of the program described in Article I.

2. Unless expressly stated otherwise, subsidiary arrangements concerning grants or contributions from the Government of Canada shall be considered as administrative arrangements.

3. Loan agreements shall be the subject of formal agreements between the Contracting Parties and shall bind them under international law.

ARTICLE III

Unless otherwise indicated, the Government of Canada shall assume the responsibilities described in Annex A and the Government of Bolivia shall assume the responsibilities described in Annex B in respect of any specific project established under a subsidiary arrangement. The Annexes A and B shall be integral parts of this Agreement.

ARTICLE IV

In this Agreement:

1. "Canadian firms" means Canadian or other non-Bolivian firms or institutions engaged in any project established under a subsidiary arrangement or a loan agreement;

2. "Canadian personnel" means Canadians or other persons from outside Bolivia working in that country on any project established under a subsidiary arrangement or a loan agreement; and

3. "dependants" means:

(a) the spouse of a Canadian staff member;

(b) the child of a Canadian staff member or his spouse who is less than twenty-one years old and is in the charge of one of them or who is twenty-one years of age or older and is in charge of one of them because of physical or mental disability; and

(c) any other dependants.

ARTICLE V

The Government of Bolivia shall indemnify and save harmless the Government of Canada, Canadian firms and Canadian personnel from and against all civil liability for any damage which may have been caused as a result of the execution of a project or any of its components, except when the Bolivian courts judge that such injury, loss or damage was intentional or resulted from gross misconduct, fraud or criminal negligence.

ARTICLE VI

The Government of Bolivia shall exempt Canadian firms and Canadian personnel, including their dependants, from corporation income tax and personal income tax, legal taxes, charges, patents and licences as well as from other charges of the same type which might be imposed in the future on funds coming from Canadian aid or the Government of Bolivia, mentioned in subsidiary arrangements as well as exempt them from the necessity of filing income tax returns in order to justify these exemptions.

ARTICLE VII

The Government of Bolivia shall exempt all equipment, materials and vehicles imported into Bolivia for the implementation of a project, from import duties and customs tariff and from other national, departmental and municipal taxes or charges. The said equipment, materials and vehicles shall be for the exclusive use of the project and shall be re-exported except for those which have become useless, are required permanently for the project or are transferred to another project of the Government of Canada.

ARTICLE VIII

The Government of Bolivia shall grant Canadian personnel:

(a) The right to import into Bolivia and to re-export, free of import duties, customs tariff and other present or future duties, in one or several shipments their household and personal effects;

(b) The exemption from payment of import duties, customs tariff and other charges and taxes on medicinal products and other articles of consumption or of daily use acquired for their personal requirements and those of their family, that may be legally imported into Bolivia. To this effect, a quota similar to the one granted by the Department of External Relations and Cult for cooperants of international technical cooperation shall apply. This exemption will not apply to personnel directly contracted by Canadian firms.

ARTICLE IX

Each Canadian staff member may import or export, free of any entry or customs duties, and any other national, departmental and municipal charges, a vehicle for his personal use. This privilege may be exercised every two (2) years. However, in the event of fire, theft or an accident causing major or non-repairable damages to the vehicle, such privilege shall be renewable before this period has expired. Those vehicles shall be re-exported except those which have become useless or which are transferred to other persons who enjoy similar exemptions.

ARTICLE X

The Government of Bolivia shall guarantee Canadian personnel and their dependants the right to maintain bank accounts in foreign currency and export without any foreign exchange restrictions the money that they have imported into Bolivia.

ARTICLE XI

The Government of Bolivia shall grant Canadian personnel and their dependants immunity from seizure of their personal and official baggage.

ARTICLE XII

The Government of Bolivia shall exempt Canadian personnel and their de­pendants from the obligation to register as aliens and from immigration restrictions.

ARTICLE XIII

The Government of Bolivia shall guarantee to Canadian personnel and all their dependants facilities for free travel throughout Bolivian territory and travel into and out of the country.

ARTICLE XIV

The Government of Bolivia shall provide:

(a) all permits, licences and other documents required by Canadian firms and Canadian personnel in the performance of their duties in Bolivia; and

(b) export permits and exit visas, as the case may be, for Canadian personnel and their dependants and for materials, professional and technical equipment and the personal effects of this personnel.

ARTICLE XV

Any differences which may arise in the application of the provisions of this Agreement or a subsidiary arrangement shall be settled by negotiations between the Government of Canada and the Government of Bolivia or in any other manner mutually acceptable to the Contracting Parties to this Agreement.

ARTICLE XVI

This Agreement shall be effective on the date it is signed by the two Contracting Parties and shall remain effective as long as one Contracting Party or the other has not terminated it by six (6) months' notice in writing. However, such termination shall not void the contracts already entered into and the guarantees already given under this Agreement.

IN WITNESS WHEREOF, the undersigned, duly authorized by their respective governments, have signed this Agreement.

DONE in two copies at La Paz, this 29th day of December 1977, in Spanish, French and English, each of which shall be deemed to be an original.

Ormond W. Dier

FOR THE GOVERNMENT OF CANADA

Oscar Adriazola Valda

FOR THE GOVERNMENT OF THE REPUBLIC OF BOLIVIA

ANNEX A

RESPONSIBILITIES OF THE GOVERNMENT OF CANADA

I. Unless otherwise indicated in subsidiary arrangements, the Government of Canada shall finance the following expenditures, based on the rates authorized in compliance with its regulations:

A. Expenditures related to Bolivian scholarship holders:

1. enrollment and tuition fees, books, supplies, or material required;

2. a living allowance;

3. medical and hospital expenses;

4. economy-class fares for travel by airplane or any other approved means of transportation, in compliance with the requirements of the scholarship program.

B. Expenditures related to Canadian personnel:

1. their salaries, fees, allowances and other benefits;

2. their travel expenses and those of their dependants between their normal place of residence and their place of assignment in Bolivia;

3. their hotel expenses or the cost of other suitable temporary accommodation incurred on authorized trips during their assignment in Bolivia;

4. the cost of shipping, between their normal place of residence and the customs location in Bolivia, their personal and household effects, those of their dependants, and specialized technical material required for the execution of their duties.

C. Expenses related to certain projects:

1. the cost of engineers', architects' and other services required for the execution of projects;

2. the cost of providing merchandise, materials, matériel, equipment and other goods required for the execution of projects and transporting them to the customs location in Bolivia.

II. Contracts for the purchase of goods or the rendering of services financed by the Government of Canada and required for the execution of individual projects shall be signed by the Government of Canada or one of its agencies. However, an arrangement may be made for the Government of Bolivia to sign such contracts itself in compliance with the conditions specified in individual subsidiary arrangements or loan agreements.

III. The Canadian Government shall provide the Government of Bolivia in advance with a list of the Canadian personnel entitled to the rights and privileges set forth in this Agreement.

ANNEX B

RESPONSIBILITIES OF THE GOVERNMENT OF BOLIVIA

I. Unless otherwise indicated in subsidiary arrangements, the Government of Bolivia shall provide and defray the services and expenditures mentioned below:

1. Furnished premises and office services in compliance with the standards of the Government of Bolivia, including adequate facilities and material, and telephone, mail and any other services which the Canadian personnel would need in order to carry out their duties;

2. The granting of entry, exit and visitor's visas to Canadian personnel and their dependants;

3. The recruiting and seconding of counterparts when required for the project;

4. Any assistance for the purpose of facilitating the travel of Canadian personnel in the performance of their duties in Bolivia;

5. Any assistance for the purpose of expediting the clearance through customs of equipment, products, materials and other goods required for the execution of projects and the personal and household effects of Canadian personnel and their dependants;

6. The storage of articles mentioned in paragraph 5 above during the period when they are held at customs and any measures required to protect these articles against natural elements, theft, fire and other danger;

7. The rapid dispatch, taking into account existing facilities of articles mentioned in paragraph 5 above from the customs location in Bolivia to project sites, including the obtaining of priority by Bolivian forwarding and transportation agents;

8. Permission to use all means of communication such as frequency radio transmitters and receivers approved in Bolivia and telephone and telegraph networks, depending on the needs of programs and projects;

9. Reports, records, maps, statistics and other information related to projects and likely to help Canadian personnel;

10. Other measures within its jurisdiction in order to eliminate all obstacles hindering the execution of projects.

II. The Government of Bolivia acknowledges that each Canadian staff member shall be entitled to a period of annual leave.