Agreed Minutes to the Agreement on the Settlement of Problem Concerning Property and Claims and on the Economic Co-operation between Japan and the Republic of Korea (1)

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

[Title] Agreed Minutes to the Agreement on the Settlement of Problem Concerning Property and Claims and on the Economic Co-operation between Japan and the Republic of Korea (1)

[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."

The representatives of the Governments of Japan and the Republic of Korea have reached the following understandings concerning the Agreement on the Settlement of [the] Problem of Property and Claims and on the Economic Co-operation between Japan and the Republic of Korea (hereinafter referred to as "the Agreement"), signed today, and the related documents thereto:

It is agreed that the products and services supplied by Japan will [shall] not be used for profit-making purposes in Japan.

(a) It is understood that "property, rights and interests" means all kinds of substantial rights which are recognized under law to be of property value;

(b) It is understoods{sic} that "special measures" means for Japan all post-war disposal measures taken in Japan on or after August 15, 1945 to meet the situations that arose as a result of the termination of the state of hostilities of World War II (including the measures taken in anticipation of special arrangements under the provisions of Article IV paragraph (a) of the Treaty of Peace with Japan signed at the city of San Francisco on September 8, 1951);

(c) It is understood that "have resided" means having resided in that country continuously for more than a year until any time during the period stipulated in paragraph 2 (a);

(d) It is understood that "normal contacts" do not include those contacts under the special circumstances that ars{sic}ose after the termination of hostilities, such as transactions by persons who are nationals of one country and who were repatriated from the other (including juridical persons who closed their branch offices) as a result of the termination of the state of hostilities of World War II, with nationals of the other until the time of repatriation;

(e) It is agreed that measures to be taken in accordance with the provisions of paragraph 3 mean the internal measures of the respective countries which would be taken for the settlement of problem concerning property, rights and interests of the two countries and their nationals and problem concerning the claims between the two countries and their nationals, referred to in paragraph 1;

(f) The Korean representative expressed the hope that careful consideration should be given to immovable property owned in Japan by the nationals of the Republic of Korea who returned home before August 15, 1947, after the termination of the state of hostilities of World War II, and the Japanese representative replied by saying that the matter would be carefully studied;

(g) It is confirmed that problem concerning property, rights and interests of the two countries and their nationals and concerning the claims between the two countries and their nationals, which is settled completely and finally as mentioned in paragraph 1, Includes any claim falling within the scope of the "Outline of the Claims of the Republic of Korea against Japan" (the so-called "Eight Items"), which was submitted by the Korean side at the Japan-Republic of Korea negotiations and that, therefore, no contention can be made with respect to the above mentioned Outline of the Claims of the Republic of Korea against Japan;

(h) It is confirmed that problem concerning property, rights and interests of the two countries and their nationals and concerning the claims between the two countries and their nationals, which is settled completely and finally as mentioned in paragraph 1, includes any claim arising from the seizure by the Republic of Korea of the Japanese fishing vessels on or before the date of the signing of the Agreement, and that, therefore, no such claim can be raised against the Government of the Republic of Korea.

It is agreed that the countries to be chosen respectively by the two Governments and a third country to be determined upon consultation between the governments of the countries so chosen, which are mentioned in paragraph 3 of the said Article, will [shall] be selected from among the countries having diplomatic relations with both Japan and the Republic of Korea.

(a) The Korean representative stated that the Republic of Korea expected that, for the purpose of securing the domestic funds of the Republic of Korea anticipated to become necessary for the execution of the projects to be carried out with the supply and loans under the provisions of Article I, paragraph 1of the Agreement, the Government of Japan will [shall] supply products other than capital goods exceeding an amount in yen equivalent to one hundred and fifty million United States dollars. The Japanese representative replied that he was prepared to pay consideration thereto;

(6) It is agreed that the products to be supplied by Japan will not include weapons and ammunition.

It is agreed that the cases where additional foreign exchange burdens are imposed on Japan mean cases where, (i) for the supply of the products concerned, especially heavy foreign exchange burdens are required or (ii) foreign exchange burdens are required in the purchase of such imported goods or imported machine parts which can function independently as may be replaced by Japanese products of the similar quality.

(a) With regard to paragraph 1, the Korean representative stated his understandings that the conclusion of contracts would be made hi Japan, that such conclusion of contracts meant the signing, and that, in general, bidding, announcement and other acts prior to the signing would take place in the Republic of Korea in cases where they were to be carried out by the Government of the Republic of Korea (the Office of Supply), and would take place in the Republic of Korea or in Japan in other cases, and the Japanese representative replied that he had no objection.

(b) It is understood that Contracts mentioned in paragraph 2 which require the supply of such accompanying services as transportation, insurance or inspection, for which payments are to be made in accordance with the provisions of the First Protocol, shall in every case include provisions to the effect that these services shall be performed by the nationals or juridical persons of Japan.

It is agreed that in case the products supplied by Japan have been exported from the territory of the Republic of Korea after having been processed (excluding the simple assembly processing or processing to a similar degree) or been given such other treatment as has been agreed upon between the two Governments, the provisions of paragraph 4 shall not be applied.

8. Re Exchange of Notes on the Implementation of the Provisions of Article I, paragraph 1 (b) of the Agreement:

(a) It is understood that the date of coming into effect of the project agreements mentioned hi 2 (b) of the Note means the date of the signing of each project agreement unless otherwise specified hi such project agreement.

(b) It is confirmed that the date of effectuation of the loan mentioned in paragraph 2 (c) of the Note means the day when the Overseas Economic Co-operation Fund makes payments to Japanese exporters on behalf of the Government of the Republic of Korea, in accordance with the terms of Contracts to be concluded between Japanese exporters and the importers of the Republic of Korea, and debit the sum in the account of the Government of the Republic of Korea which will be opened in the Fund.