EXCHANGE OF LETTERS CONSTITUTING AN AGREEMENT BETWEEN THE GOVERNMENT OF AUSTRALIA AND THE GOVERNMENT OF PAPUA NEW GUINEA PURSUANT TO ARTICLES 3-5 OF THE TREATY ON DEVELOPMENT CO-OPERATION OF 24 MAY 1989

(Canberra-Waigani, 15 October-9 November 1992)

ENTRY INTO FORCE: 09 NOVEMBER 1992

[Letter from the Australian Minister for Trade and Overseas Development to the Deputy Prime Minister and Minister for Finance and Planning of Papua New Guinea] 

Parliament House 
Canberra ACT 2600 

15 October 1992 

The Hon Sir Julius Chan KBE, MP 
Deputy Prime Minister and Minister for Finance and Planning 
Parliament House 
WAIGANI NCD 
PAPUA NEW GUINEA 

Dear Minister 

I have the honour to refer to the Joint Declaration of Principles Guiding Relations between Australia and Papua New Guinea signed on 9 December 1987 and the Treaty on Development Co-operation between the Government of Australia and the Government of Papua New Guinea done at Canberra on 24 May 1989 (the Treaty).[1] 

In pursuance of Article 3(5) of the Treaty and following a review by the Parties pursuant to Articles 4(3) and 5(2) of the Treaty, I am pleased to confirm the agreement of the Government of Australia to extend levels of budget support and jointly programmed aid to the Government of Papua New Guinea under the following arrangements. 

(a) The level of budget support and the indicative level of jointly programmed aid, in millions of Australian dollars, which the Government of Australia shall provide to the Government of Papua New Guinea for each of the Australian financial years between 1 July 1992 and 30 June 1997 shall be as follows: 

Year Budget Support Jointly Programmed Aid 

1992/93 259.0 46.0 

1993/94 249.0 46.0 

1994/95 213.4 82.3 

1995/96 177.8 118.6 

1996/97 142.2 154.9 

Subject to Article 5(4) of the Treaty, unexpended programmed or project aid funds shall not be carried over from one Australian financial year to the succeeding year. 

(b) The level of budget support, in millions of Australian dollars, which the Government of Australian shall provide to the Government of Papua New Guinea for each of the Papua New Guinea financial years between 1 July 1992 and 30 June 1997 shall be as follows: 

Year Budget Support 

1 July - 31 December 1992 129.5 

1993 254.0 

1994 231.2 

1995 195.6 

1996 160.0 

1 January - 30 June 1997 71.1 

May I suggest that the next review of the levels of budget support and jointly programmed aid required under Articles 4(3) and 5(2) of the Treaty be conducted in September 1995.

I have further the honour to propose, Excellency, that if the Government of Papua New Guinea agrees to the foregoing, this letter and your letter in reply thereto in affirmation of your Government's agreement shall constitute an agreement between our two governments, to enter into force on the date of your letter in reply.[2]

Yours sincerely 

[Signed:] 

JOHN KERIN 

[Letter from the Deputy Prime Minister and Minister for Finance and Planning of Papua New Guinea to the Australian Minister for Trade and Overseas Development] 

Minister for Financing and Planning 
Waigani 
PAPUA NEW GUINEA 

9 November 1992 

The Hon John Kerin 
Minister for Trade and Overseas Development 
Parliament House 
CANBERRA ACT 2600 
AUSTRALIA 

Dear Minister 

I have the honour to refer you to your letter dated 15th October 1992, the full content of which reads as follows: 

[Here follows text as printed under I.] 

I have further the honour to confirm that the foregoing is acceptable to the Government of Papua New Guinea and to agree that your letter and this letter shall constitute an agreement between our two Governments, which shall enter into force on the date of this reply. 

Yours sincerely 

[Signed:] 

JULIUS CHAN 
Deputy Prime Minister 
_____________________________________________________________________________

[1]ATS 1989 No. 24 

[2] The Agreement entered into force 9 November 1992.