Sec. 4.08. Whenever any part of a loan is made repayable in the currency of the borrower, the Administrator shall require that the country of the borrower agree that its currency received by the Fund may be used by the Fund or by any recipient from the Fund, without restriction by the country, to make payments for goods and services produced in the territory of the country for use in furtherance of the purposes of the Fund in any country eligible for assistance from the Fund. Sec. 4.09. Currencies held by the Administrator in the resources of the Fund shall not be used to purchase other currencies for making loans. Sec. 4.10. Decisions relating to the Fund shall be reached by the Administrator in accordance with the provisions of Article IV, Section 9, of the Agreement Establishing the Bank. ARTICLE V. THE ADMINISTRATOR Section 5.01. In the administration of the Fund, cooperation shall be maintained with national and international organizations, both public and private, operating in the field of social development, and particularly with agencies of the United States administering other portions of the Special Inter-American Fund for Social Development. Sec. 5.02. The Bank shall exercise the same care in the discharge of its functions under this Agreement as it exercises with respect to the administration and management of its own affairs. Sec. 5.03. The Administrator shall receive no compensation other than reimbursement for expenses incurred because of services rendered under this Agreement, which will be computed in accordance with the plan set forth in Annex A hereto. Sec. 5.04. The Bank shall include in its annual and quarterly reports a separate section containing appropriate information with respect to the receipts and disbursements of, and balances in, the Fund. In addition, within sixty days after the close of each annual accounting period the Administrator shall issue a detailed report containing appropriate information with respect to operations of the Fund, the progress of the projects for which disbursements were made and other matters relating to the Fund, including a factual presentation of the measures being taken in the borrowing countries to accomplish the objectives stated in Section 1 of the Act of Bogotá. Observations which the United States may desire to make to the Administrator upon any such annual report shall be presented as promptly as possible and ordinarily within the annual accounting period in which the report is received. ARTICLE VI. REVISION AND TERMINATION Section 6.01. Following each annual report made by the Administrator under Article V, Section 5.04, hereof, either Party may propose revision of the terms of this Agreement. Sec. 6.02. If at any time it appears to the Administrator or to the United States that the Fund is no longer necessary or that the purposes of the Fund can no longer be appropriately or effectively carried out, the Parties hereto shall forthwith consult with one another concerning the measures to be taken. If a decision to terminate the Agreement is reached, or if no decision is reached within thirty days, or if pursuant to Article X of the Agreement Establishing the Bank, the Bank suspends or terminates its operations, then the operations of the Fund shall cease and its liquidation shall be commenced upon the election of either Party unless both Parties agree on another course of action. Sec. 6.03. Any assets remaining in the Fund at the time of termination, including outstanding loans, shall revert to the United States upon the settlement of all accounts due and payable from the Fund. ARTICLE VII. ENTRY INTO FORCE Section 7.01. This Agreement shall enter into force on the date hereof. ARTICLE VIII. TITLE Section 8.01. This Agreement may be cited as "Social Progress Trust Fund Agreement.' DONE at the city of Washington in the District of Columbia, this nineteenth day of June, 1961, in two equally authentic originals. FOR THE GOVERNMENT OF THE UNITED STATES OF AMERICA: FOR THE INTER-AMERICAN DEVELOPMENT BANK: ANNEX A Felipe Herrera 1. The Fund shall be charged for the salary costs of time which is spent on work for the Fund by the professional staff of the Office of Special Operations of the Administrator and by the professional staff, exclusive of division heads and assistant division heads, of the Loan, Technical Assistance, Economics, and Legal Divisions of the Administrator. 2. The Fund shall be charged for all other expenses clearly identifiable as having been incurred by the Administrator in the Fund's behalf, e.g., staff travel and consultants' costs. 3. For each dollar of the professional salary costs charged to the Fund pursuant to paragraph 1 above, the Fund shall be charged an additional $1.80, representing the Fund's share of indirect and overhead expenses other than those specified in paragraph 4 hereof. The amount specified herein shall, at the request of either Party, be subject to adjustment at the end of each annual accounting period of the Administrator. 4. No charge shall be made to the Fund for costs of the Annual Meeting of the Board of Governors; for the Offices of the Executive Directors; for services of persons in the Offices of the President and the Executive Vice President; for the salaries of the heads and assistant heads of the Divisions referred to in paragraph 1 hereof; or for any part of the expenses incurred by the Bank primarily for its own benefit, such as travel, printing, library, books and periodicals, and for various fees and compensation costs (e.g., fees for actuarial services and for handling the retirement fund). The Secretary of State to the President of the Inter-American DEAR DR. HERRERA: THE SECRETARY OF STATE WASHINGTON June 19, 1961 I have the honor to refer to the Agreement on the Social Progress Trust Fund between the Government of the United States of America and the Inter-American Development Bank signed today. It is the view of my government that in accordance with applicable United States statutes at least 50 percentum of the gross tonnage of any equipment, materials and commodities which are financed with funds derived from a disbursement authorized under this Agreement and which are to be transported on ocean vessels, shall be transported on privately owned United States flag commercial vessels to the extent such vessels are available at fair and reasonable rates for United States-flag vessels. I should be grateful if you could confirm on behalf of the InterAmerican Development Bank that the foregoing will be applied in the administration of the Trust Fund. For the Government of the United States DR. FELIPE HERRERA, President, Inter-American Development Bank, DEAN RUSK The President of the Inter-American Development Bank to the Secretary of State I have the honor to acknowledge the receipt of your note of today's date which reads as follows: "I have the honor to refer to the Agreement on the Social Progress Trust Fund between the Government of the United States of America. and the Inter-American Development Bank signed today. "It is the view of my government that in accordance with applicable United States statutes at least 50 percentum of the gross tonnage of any equipment, materials and commodities which are financed with funds derived from a disbursement authorized under this Agreement and which are to be transported on ocean vessels, shall be transported on privately owned United States flag commercial vessels to the extent such vessels are available at fair and reasonable rates for United States flag vessels. "I should be grateful if you could confirm on behalf of the InterAmerican Development Bank that the foregoing will be applied in the administration of the Trust Fund. "For the Government of the United States Dean Rusk" On behalf of the Inter-American Development Bank I herewith give the confirmation requested. F. HERRERA Felipe Herrera President 1. 1964 Protocol to the Social Progress Trust Fund Agreement Signed at Washington February 17, 1964; Entered Into Force February 17, 1964 WHEREAS Section 3.02 of the Social Progress Trust Fund Agreement between the United States of America and the Inter-American Development Bank dated the nineteenth day of June, 1961,[1] provides that the amount of commitments which the Bank as Administrator of the Trust Fund is entitled to make may be increased by mutual agreement; and WHEREAS the United States wishes to give further support to the Alliance for Progress by augmenting the resources of the Social Progress Trust Fund; and WHEREAS the Bank is prepared to administer such an increase of the resources of the Fund; Now, THEREFORE, the Parties hereto agree as follows: ARTICLE I The Bank, as Administrator of the Social Progress Trust Fund purusant to the terms of the Social Progress Trust Fund Agreement, shall be entitled to make commitments on behalf of the Fund in an amount of $131,000,000 in addition to the sum now specified in Section 3.02 of the Agreement. ARTICLE II This protocol shall enter into forece on the date hereof. DONE at the city of Washington in the District of Columbia, this 17th day of February, 1964 in two equally authentic originals. FOR THE UNITED STATES OF AMERICA: THOMAS C. MANN FOR THE INTER-AMERICAN DEVELOPMENT BANK: F. HERERRA I TIAS 4763; 12 UST 632. (116) |