Second Protocol, Agreement on the Settlement of Problems Concerning Property and Claims and on Economic Co-operation between Japan and the Republic of Korea.

National Graduate Institute for Policy Studies (GRIPS); Institute for Advanced Studies on Asia (IASA), The University of Tokyo

[Title] Second Protocol, Agreement on the Settlement of Problems Concerning Property and Claims and on Economic Co-operation between Japan and the Republic of Korea.

[Notes] Quote from the United Nations Treaty Collection: "Translation by the Government of Japan. The Secretariat also received an English translation of this agreement from the Government of Republic of Korea which on certain points differs from that provided by the Government of Japan. At the request of the Government of Republic of Korea, these differences have been shown by printing in italics the pertinent word of phrase in the translation of the Government of Japan and providing in square brackets the corresponding expression in the translation by the Government of the Republic of Korea."

At the time of the signing of the Agreement on the Settlement of [the] Problem Concerning Property and Claims and on the Economic Co-operation between Japan and the Republic of Korea (hereinafter referred to as "the Agreement"), the undersigned, being duly authorized by their respective Governments, have further agreed on the following provisions which shall be considered integral parts of the Agreement:

The Republic of Korea shall repay forty-five million seven hundred and twenty-nine thousand three hundred and ninety-eight dollars and eight cents in United States dollars ($45,729,398.08), confirmed between the Governments of the Contracting Parties as the balance, in favour of Japan, of the Open Account between Japan and the Republic of Korea in the exchange of notes dated April 22, 1961, in the following installments within the period of ten (10) years from the date of the entry into force of the Agreement. In this case, no interest shall be charged.

The amount of each of the first nine annual installments: four million five hundred and seventy-three thousand United States dollar ($4,573,000).

The amount of the tenth annual installment: four million five hundred and seventy-two thousand three hundred and ninety-eight dollars and eight cents in United States dollars ($4,572,398.08).

In case request is made by the Republic of Korea with respect to an annual installment referred to in the preceding Article, the supply of the products and services under the provisions of Article I, paragraph 1 (a) of the Agreement and the payments of the installments under the provisions of the preceding Article shall be deemed as having been carried out to the amount equivalent to that so requested. The amount of the supply of products and services under the provisions of Article I, paragraph 1 (a) of the Agreement and the ceiling on the amount of the supply for the year concerned shall be thereby deducted by the said amount of money, notwithstanding the provisions of paragraph 1 (a) of the said Article.

Concerning the repayment of the Balance in favour of Japan referred to in Article I, the Republic of Korea shall pay the first annual installment on the date of the entry into force of the Agreement, and the second and subsequent annual installments shall be paid on or before the same date each year as that for the first payment.

In view of the fiscal practices of Japan, the request by the Government of the Republic of Korea mentioned in Article II shall be made, with respect to the installment to be paid on the date provided for in the preceding Article, by October 1 of the year preceding the calendar year in which the Japanese fiscal year, to which such date for payment belongs, begins. Request, however, with respect to the first payment (and to the second payment in case the provisions of the foregoing sentence are not applicable) shall be made on the date of the entry into force of the Agreement.

The request by the Republic of Korea may be made with respect to the whole or part of the installment for each year referred to in Article I.

In the event that the Republic of Korea does not make such request by the date provided for in Article IV and fails to make the payment of the whole or part of the installment by the date for payment provided for in Article III, it shall be deemed that the Republic of Korea has made the request mentioned in Article II with respect to the whole or part of the said installment.

DONE in duplicate at Tokyo, in the Japanese and Korean languages, both being equally authentic, this twenty-second day of June of the year one thousand nine hundred and sixty-five.