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stability of Japan, the full contribution permitted by its manpower, resources, facilities and general economic condition to the development and maintenance of its own defensive strength and the defensive strength of the free world, take all reasonable measures which may be needed to develop its defense capacities, and take appropriate steps to ensure the effective utilization of any assistance provided by the Government of the United States of America.

ARTICLE IX

1. Nothing contained in the present Agreement shall be construed to alter or otherwise modify the Security Treaty between the United States of America and Japan or any arrangements concluded thereunder.

2. The present Agreement will be implemented by each Government in accordance with the constitutional provisions of the respective countries.

ARTICLE X

1. The two Governments will, upon the request of either of them, consult regarding any matter relating to the application of the present Agreement or to operations or arrangements carried out pursuant to the present Agreement.

2. The terms of the present Agreement may be reviewed at the request of either of the two Governments or amended by agreement between them at any time.

ARTICLE XI

1. The present Agreement shall come into force on the date of receipt by the Government of the United States of America of a written notice from the Government of Japan of ratification of the Agreement by Japan. [']

2. The present Agreement will thereafter continue in force until one year after the date of receipt by either Government of a written notice of the intention of the other to terminate it, provided that the provisions of Article I, paragraphs 2, 3 and 4, and arrangements entered into under Article III, paragraph 1 and Article IV shall remain in force unless otherwise agreed by the two Governments.

3. The Annexes to the present Agreement shall form an integral part thereof.

4. The present Agreement shall be registered with the Secretariat of the United Nations.

IN WITNESS WHEREOF the representatives of the two Governments, duly authorized for the purpose, have signed the present Agreement.

[1]May 1, 1954.

DONE in duplicate, in the English and Japanese languages, both equally authentic, at Tokyo, this eighth day of March, one thousand nine hundred fifty-four.

For the Unites States of America:

JOHN M. ALLISON

For Japan:

KATSUO OKAZAKI

[Seal]

[Seal]

ANNEX A

In carrying out the present Agreement, the Government of the United States of America will give every consideration, to the extent that other factors will permit, to procurement in Japan of supplies and equipment to be made available to Japan, as well as to other countries, where feasible, and to providing information to and facilitating the training of technicians from Japan's defenseproduction industries. In this connection, representatives of the Government of Japan stated that the development of Japan's defense capacities will greatly be facilitated if the Government of the United States of America will give consideration to assisting in the financing of Japan's defense-production industries.

The two Governments recognize the advisability of establishing adequate liaison between them to facilitate procurement by the Government of the United States of America in Japan.

ANNEX B

The security measures which the Government of Japan agrees to take pursuant to Article III, paragraph 1 will be such as would guarantee the same degree of security and protection as provided in the United States of America, and no disclosure to any person not an officer or agent of the Government of Japan of classified articles, services or information accepted by Japan, will be made without the prior consent of the Government of the United States of America.

ANNEX C

The two Governments recognize the benefits to be derived from the principle of standardization, and agree to the advisability of taking feasible joint measures to achieve that degree of standardization, with respect to specifications and quality, which will promote the effective utilization and maintenance of any assistance furnished under the present Agreement.

ANNEX D

In the interest of common security, the Government of Japan will cooperate with the Governments of the United States of America and other peace-loving countries in taking measures to control trade with nations which threaten the maintenance of world peace.

ANNEX E

To effectuate Article VI, the Governments of the United States of America and Japan agree as follows:

1. The Japanese taxes referred to in Article VI, paragraph 1b

and paragraph 2, are as follows:

a. Commodity tax,

b. Travelling tax;

c. Gasoline tax;

d. Electricity and gas tax.

2. With respect to any present or future taxes of Japan not specifically referred to in this Annex which might be found to be applicable to the expenditures covered by Article VI, the two Governments will agree upon procedures for granting exemption and refund.

3. Exemption from duties and exemption from and refund of Japanese taxes will be applied upon appropriate certification by the Government of the United States of America. 4. Materials, supplies and equipment imported into or procured by the Government of the United States of America in Japan exempt from duties and taxes under Article VI, shall not be disposed of in Japan except as such disposal may be authorized by the authorities of the United States of America and Japan in accordance with mutually agreed conditions. 5. Nothing in Article VI, or this Annex shall be construed to a. Require exemption from import or export procedures provided for by the laws of Japan, or

b. Affect exemption from duties and internal taxation provided for by the laws of Japan in accordance with existing agreements and arrangements such as the Administrative Agreement under Article III of the Security Treaty between the United States of America and Japan.

ANNEX F

1. With respect to the facilities to be accorded by the Government of Japan to the personnel of the Government of the United States of America who, pursuant to Article VII of the present Agreement, will discharge in Japan responsibilities of the Government of the United States of America to observe the progress of assistance furnished in pursuance of the present Agreement, the two Governments agree that such facilities to be accorded shall be reasonable and not unduly burdensome upon the Government of Japan.

2. The two Governments agree that the number of such personnel to be accorded diplomatic privileges will be kept as low as possible.

3. It is understood between the two Governments that the status of such personnel of the nationality of the United States

of America, considered part of the Diplomatic Mission of the Government of the United States of America, will be the same as the status of personnel of corresponding rank of the Embassy of the United States of America in Japan.

Such personnel will be divided into three categories:

a. Upon appropriate notification by the Government of the United States of America, full diplomatic status will be granted to the senior military member and the senior Army, Navy and Air Force officer assigned thereto, and to their respective immediate deputies.

b. The second category of personnel will enjoy privileges and immunities conferred by international custom to certain categories of personnel of the Embassy of the United States of America in Japan, such as the immunity from civil and criminal jurisdiction of Japan, immunity of official papers from search and seizure, right of free egress, exemption from customs duties or similar taxes or restrictions in respect of personally owned property imported into Japan by such personnel for their personal use and consumption, without prejudice to the existing regulations on foreign exchange, exemption from internal taxation by Japan upon salaries of such personnel. Privileges and courtesies incident to diplomatic status such as diplomatic automobile license plates, inclusion on the "Diplomatic List," and social courtesies may be waived by the Government of the United States of America for this category of personnel.

c. The third category of personnel will receive the same status as the clerical personnel of the Embassy of the United States of America in Japan.

ANNEX G

1. The two Governments agree to restrict to the minimum necessary the amount of expenses to be made available from time to time by the Government of Japan pursuant to Article VII.

2. The two Governments also agree that the Government of Japan may, in lieu of meeting the expenses referred to in the preceding paragraph, make available necessary and suitable real estate, equipment, supplies and services.

3. The two Governments agree that, in consideration of the contributions in kind to be made available by the Government of Japan, the amount of yen to be made available as a cash contribution by the Government of Japan for any Japanese fiscal year shall be as agreed upon between the two Governments.

4. The contributions by the Government of Japan will be made available in accordance with arrangements as may be agreed upon between the two Governments.

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