'760 



Campaign as a Fimd-in-Trust to be used for the purpose of supple- 

 menting the activities envisaged under the Off-Shore Fishery Devel- 

 opment^Project for Vietnam (the Project) approved by the Governing 

 Council of the United Nations Development Program m January, 



1967. . , , , . 



"The Government of the United States wishes to make this grant 



on the following terms : 



"1. Subject to the terms of this note and to the availability of funds, 

 the United States will contribute a total of up to $2,012,100 to the 

 Food and Agriculture Organization of the United Nations as a Fund- 

 in-Trust to be used solely for the following purposes : 



"(a) to supplement, through appropriate subcontracting, and 

 purchasing, and through the direct recruitment of an expert, 

 the activities envisaged under the Project in respect to fishing 

 activities through feasibility studies, trawling off the coast of 

 Vietnam, and provision of a fishing vessel and equipment, as 

 well as personnel, in accordance with a work plan agreed be- 

 tween appropriate authorities of the United States Department 

 of State and the FAO, and 



"(b) to pay for the FAO's project service costs at the rate of 

 5% of the amounts expended for the purposes of subsection (a) 

 of this paragraph. 

 "2. The total contribution shall be made in three installments. The 

 first installment shall be by letter of credit issued to the FAO in the 

 amount of $705,600 within thirty days of the date of the FAO's con- 

 curring reply to this note. The subsequent installments shall be made 

 at such dates and in such manner as the United States Government 

 and the FAO later agree. 



"3. The FAO shall draw on letters of credit issued under para- 

 graph 2 solely on the basis of such requirements for expenditure 

 as arise in carrying out the purposes of the Fund-in-Trust and shall 

 return to the United States Government any portion of the Fund-in- 

 Trust which is not so applied. In the event that the purposes of the 

 Fund-in-Trust can no longer be effectively carried out, the unexpended 

 portion of the funds shall be returned to the United States Govern- 

 ment. The FAO also shall pay to the United States Government its 

 proportionate share of all refunds, rebates, and credits which it re- 

 ceives in connection with the purposes of the Fund-in-Trust. 



"4 The FAO shall be solely responsible for the arrangements to be 

 made with the Government of Vietnam, which has requested this aid, 

 and for the execution of the Project, and shall be free to delegate 

 and/or subcontract its responsibilities for all or any part of the Proj- 

 ect in accordance with the rules and practices of the FAO. 



"5. The FAO shall furnish the United States Government an annual 

 report on the activities financed by this Fund-in-Trust and an annual 

 statement of account thereon. 



"I propose that, if the terms are acceptable to the FAO, this note 

 and the FAO's concurring reply shall constitute an agreement between 

 the Government of the United States and the FAO, effective on the 

 date of such reply. 



Very truly yours, 



For the Secretary of State : 

 Deputy Assistant Secretary of State 

 for International Organization Affairs'^'' 



