The Governments of the Kingdom of the Netherlands, the Republic of Indonesia, and
the United States of America:
Considering that the Governments of the Kingdom of the Netherlands and the United
States of America concluded an Economic Cooperation Agreement on the second day of
July, 1948, and that the Government of the United States of America has furnished
economic assistance to the Government of the Kingdom of the Netherlands under such
agreement, and amendments thereto;
Considering that a portion of the aforementioned assistance was furnished for the
benefit of the area now constituting the Republic of Indonesia; that under the aforementioned
Economic Cooperation Agreement, the Government of the Kingdom of the Netherlands assumed
certain responsibilities and obligations with respect to such assistance, and that
as to such assistance furnished on a grant basis the Government of the Kingdom of
the Netherlands was given rights and powers in connection with a portion of the local
currency counterpart deposited therefor pursuant to Article IV of such Agreement;
Considering further that with respect to a portion of the assistance furnished for
the benefit of the area now constituting the Republic of Indonesia, the Government
of the Kingdom of the Netherlands undertook an obligation to make repayment in the
amount of $ 17,200,000 to the Government of the United States of America under promissory
notes executed October 28, 1948 and December 22, 1949;
Recognizing that on December 27, 1949, pursuant to the Charter of Transfer of Sovereignty
as provided by the Round Table Conference Agreements, sovereignty over Indonesia was
transferred to the Government of the Republic of the United States of Indonesia by
the Government of the Kingdom of the Netherlands, and that the Governments of the
Kingdom of the Netherlands and of the Republic of Indonesia have jointly proposed
to the Government of the United States of America that the Government of the Republic
of Indonesia formally assume all obligations hereinafter specified with respect to
the aforementioned economic assistance furnished for the benefit of the area now constituting
the Republic of Indonesia, that the Kingdom of the Netherlands be relieved of all
such obligations, and that the Kingdom of the Netherlands transfer all rights in connection
therewith to the Government of the Republic of Indonesia;
Recognizing that, pursuant to an exchange of notes between the Government of the United
States of America and the Government of the Republic of the United States of Indonesia,
concluded March 24, 1950, the Government of the Republic of Indonesia has already
assumed certain obligations with respect to the aforementioned economic assistance;
Recognizing further the desire of the Government of the United States of America to
conform its arrangements with respect to the aforementioned economic assistance so
that they may be consistent with the change in status of the area now constituting
the Republic of Indonesia;