AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE GOVERNMENT OF PAPUA NEW GUINEA CONCERNING THE PROGRAM OF THE PEACE CORPS IN PAPUA NEW GUINEA 

(Washington, 6 October 1980)

ENTRY INTO FORCE: 6 OCTOBER 1980

The Director of the Peace Corps to the Papua New Guinean Minister of Foreign Affairs and Trade

Excellency:

I have the honour to refer to recent conversations between representatives of our two governments and to propose the following understanding with respect to the men and women of the United States of America who volunteer to serve in the Peace Corps and who at the request of your government would live and work for periods of time in Papua New Guinea.

1. The Government of the United States will furnish such Peace Corps volunteers as may be requested by the Government of Papua New Guinea and approved by the Government of the United States to perform tasks agreed by both Governments. The volunteers will work under the immediate supervision of governmental organizations in programs designated by our two governments. The Government of the United States will provide training to enable the volunteers to perform effectively their agreed tasks.

2. The Government of Papua New Guinea will accord equitable treatment to the volunteers and their property; afford them full aid and protection including treatment no less favourable than that generally accorded to nationals of the United States residing in Papua New Guinea; and fully inform, consult and cooperate with representatives of the Government of the United States with respect to all matters concerning such volunteers. The Government of Papua New Guinea will exempt the volunteers from taxation on the salaries and emoluments paid to them by the Peace Corps; from taxation on income derived from sources outside Papua New Guinea; from import duty and import levy on their personal property and household effects (excluding a motor vehicle) introduced into Papua New Guinea for their own use at or about the time of their arrival and up to six months after their arrival.

3. The Government of Papua New Guinea will exempt the Peace Corps from the payment of import duty and import levy in respect of vehicles, plant and equipment that are imported into or purchased in Papua New Guinea for the purpose of performing functions under this understanding.

4. The Government of Papua New Guinea will receive a representative of the Peace Corps and such staff of the representative as are acceptable to the Government of Papua New Guinea. The Government of Papua New Guinea will exempt such persons from taxation on the salaries and emoluments paid to them by Peace Corps, and from taxation on income derived from sources outside Papua New Guinea. The Government of Papua New Guinea will accord the Peace Corps Representative and his staff the same treatment with respect to the payment of import duty and import levy on personal property introduced into Papua New Guinea for their own use as is accorded to volunteers herein together with the right to import for personal use a motor vehicle or within six months after the date on which they take up their posts in the country, purchase a motor vehicle for personal use free of import duty and import levy, provided, however, that should such a vehicle be sold or disposed of within a period of two years after the date of importation or purchase, the person concerned will pay import duty and import levy at the rate payable at the time of acquisition. The payment of such duty and levy is the sole and private responsibility of the person concerned.

5. Appropriate representatives of our two governments may make from time to time such arrangements with respect to Peace Corps volunteers and Peace Corps programs in Papua New Guinea as appear necessary or desirable for purpose of implementing this understanding. The undertakings of each government herein are subject to the availability of funds and to the applicable laws of that government.

I have the further honour to propose that if the foregoing is acceptable to your government, this note and your government's reply note concurring therein will constitute an understanding between our two governments which shall enter into force on the date of your government's note and will remain in force until ninety days after the date of the written notification from either government to the other of intent to terminate it.

Accept, Excellency, the renewed assurances of my highest consideration.

The Papua New Guinean Minister of Foreign Affairs and Trade to the Director of the Peace Corps
 
PEACE CORPS UNDERSTANDING
 
I have the honour to refer to your note of October 6th 1980, proposing the following understanding with respect to the men and women of United States of America who volunteer to serve in Peace Corps and who at the request of your Government would live and work for periods of time in Papua New Guinea.
 
1 The Government of the United States will furnish such peace corps volunteers as may be requested by the Government of Papua New Cuinea and approved by the Government of the United States to perform tasks agreed by both Governments. The Volunteers will work under the immediate supervision of Governmental organizations in programs designated by our two Governments. The Government of the United States will provide training to enable the Volunteers to perform effectively their agreed tasks.
 
2 The Government of Papua New Guinea will accord equitable treatment to the Volunteers and their property, afford them full aid protection including treatment no less favourable than that generally accorded to nationals of the United States residing in Papua New Guinea, and fully inform, consult and cooperate with representatives of the Government of the United States with respect to all matters concerning such volunteers. The Government of Papua New Guinea will exempt the Volunteers from taxation on the salaries and emoluments paid to them by the Peace Corps, from taxation on income derived from sources outside Papua New Guinea, from import duty and import levy on their personal property and household effects (excluding a motor vehicle) introduced into Papua New Guinea for their own use at or about the time of their arrival and up to six months after their arrival.
 
3 The Government of Papua New Guinea will exempt the Peace Corps from the payment of import duty and import levy in respect of vehicles, plant and equipment that are imported into or purchased in Papua New Guinea for the purpose of performing functions under this understanding.
 
4 The Government of Papua New Guinea will receive a representative of the Peace Corps and such staff of the representative as are acceptable to the Government of Papua New Guinea. The Government of Papua New Guinea will exempt such persons from taxation on the salaries and emcluments paid to them by the Peace Corps and from taxation on income derived from sources outside Papua New Guinea. The Government of Papua New Guinea will accord the Peace Corps representative and his staff the same treatment with respect to the payment of import duty and import levy on personal property introduced to volunteers herein together with the right to import for personal use a motor vehicle or within six months after the date on which they take up their posts in the country. Purchase of a motor vehicle for personal use free of import duty and import levy, provided, however, that should such a vehicle be sold or disposed of within a period of two years after the date of importation or purchase, the person concerned will pay import duty and import levy at the rate payable at the time of acquisition. The payment of such duty and levy is the sole and private responsibility of the person concerned.

5 Appropriate representatives of our two Governments may make from time to time such arrangements with respect to Peace Corps Volunteers and Peace Corps programs in Papua New Guinea as appear necessary or desirable for purpose of implementing this understanding. The undertakings of each Government herein are subject to the availability of funds and to the applicable laws of that Government.
 
I have the honour to inform you that my Government after consideration of your proposal has accepted the foregone as constituting and understanding between the two governments which shall enter into force on October 6, 1980 and will remain in force until ninety days after the date of the return notification from either governments to the other of intent to terminate it.
 
Accept, Mr Director, the assurances of my highest consideration.

[RELATED NOTE]

MINISTER FOR FOREIGN AFFAIRS AND TRADE

PAPUA NEW GUINEA
 
Mr Director,
 
I have the honour to refer to the exchange of notes between the Government of Papua New Guinea and the Government of United States of America on October 6th 1980, regarding the establishment of the Peace Corps program and to state the following with regard to (taxation and other charges) privileges and immunities.
 
Until the necessary domestic legislation is enacted, the intention of the understanding with respect to exemption from taxation on income derived from sources outside Papua New Guinea will be honoured administratively.
 
Individuals who are under contract to Peace Corps to provide training, programming and other services will be eligible for designated aid status as provided for in the aid (privileges and immunities) Act 1977.
 
There are no deposit requirements, currency controls or taxes on the conversion of currency which would apply to funds introduced into Papua New Guinea by the Government of the United States in connection with Peace Corps activities. Consequently, these funds will be freely convertible into the currency of Papua New Guinea at the rate of exchange prevailing at the time. The Government of the United States is assured that no such measures are contemplated at the present time. Should a change of policy be proposed in this respect, immediate negotiations between the parties will take place, and sympathetic consideration will be given by the Government to waiving such requirements in respect of the Peace Corps.
 
With respect to charges other than import levies [ILLEGIBLE WORD] import duties such as immigration fees, which might be on personnel or volunteers of the Peace Corps, the Government of the United States is assured that no such measures are contemplated at the present time. Should a change of policy be proposed in this respect, immediate negotiations between the parties will take place and sympathetic consideration will be given by the Government of Papua New Guinea to waiving such requirements in respect of the Peace Corps.
 
Accept, Mr Director, the assurances of my highest consideration.

SIGNATORIES:
Richard F. Celeste

Director of Peace Corps
His Excellency

Mr. Noel Levi

Minister of Foreign Affairs and Trade of the Independent State of Papua New Guinea

W NOEL LEVI (MP)

MINISTER FOR FOREIGN AFFAIRS AND TRADE

October 6th, 1980
Richard Celeste
Peace Corps Director
Peace Corps
806 Connecticut Ave
Washington D.C. 20525