EXCHANGE OF LETTERS CONSTITUTING AN AGREEMENT TO FURTHER AMEND THE TREATY ON DEVELOPMENT COOPERATION BETWEEN THE GOVERNMENT OF AUSTRALIA AND THE GOVERNMENT OF PAPUA NEW GUINEA, AND EXCHANGE OF LETTERS, OF 24 MAY 1989

(Canberra-Waigani, 30 April-23 May 1994) 

ENTRY INTO FORCE: 23 MAY 1994

[Letter from the Australian Minister for Foreign Affairs to the Minister for Finance and Planning of Papua New Guinea] 
I
Parliament House
CANBERRA ACT 2600

30 April 1994
Hon Masket Iangalio MP
Minister for Finance and Planning
Waigani, PAPUA NEW GUINEA

Dear Masket 
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 Cooperation between the Government of Australia and the Government of Papua New Guinea done at Canberra on 24 May 1989 (the Treaty).
I have the honour to propose the following 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 
1993/94 244.0 56.0 
1994/95 213.4 77.3 
1995/96 177.8 118.6 
1996/97 142.2 154.9 
(b) Article 4(5) of the Treaty shall not apply to the payment of budget support for the Australian financial year 1993/94. 
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.

Yours sincerely 
[Signed:] 
(GARETH EVANS)
MINISTER FOR FOREGIN AFFAIRS 
[Letter from the Minister for Finance and Planning of Papua New Guinea to the Australian Minister for Foreign Affairs]

II
Minister for Finance & Planning 
23 May 1994 
Hon Gareth Evans MP
Minister for Foreign Affairs
Leader of the Government in the Senate
Parliament House
Canberra ACT 2600
Australia 
Dear Gareth, 
I acknowledge with gratitude, receipt of your letter dated 30 April 1994, in which you made reference 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 Papua New Guinea and the Government of Australia done in Canberra on 24 May 1989. 
In your letter you proposed the following: 
(a) that 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 
1993/94 244.0 56.0 
1994/95 213.4 77.3 
1995/96 177.8 118.6 
1996/97 142.2 154.9 
(b) that Article 4(5) of the Treaty shall not apply to the payment of budget support for the Australian financial year 1993/94; and 
(c) that your letter and our response should constitute an agreement between our two Governments to enter into force on the date of our reply to your letter. 
I have the honour to convey our affirmation on the above as it is consistent with our current understanding. 

Yours sincerely 
[Signed:] 
(MASKET IANGALIO MP)
MINIATER FOR FINANCE AND PLANNING