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Agreement Between Japan
and the Republic of Korea
Concerning
the Settlement of Problems in Regard to
Property
and Claims and Economic Cooperation

Article I

1
Japan shall supply the Republic of Korea with:

(a)
Products of Japan and the services of Japanese people, free of charge,
the total value of which will be so much in yen as shall be equivalent
to three hundred million United States dollars ($300,000,000),
at present computed
at one hundred and eight billion yen (\108,000,000,000),
within a period of ten years of the date
on which the present Agreement enters into force.

The supply of products and services each year
shall be limited to so much in yen
as shall be equivalent to thirty million United States dollars ($30,000,000),
at present computed at ten billion eight hundred million yen (010,800,000,000);
when the supply of any one year falls short of this amount,
the remainder shall be added to the amount for the next
and subsequent years.

However, the maximum amount supplied for any one year may be increased
by agreement between the Governments of the High Contracting Parties.

(b)
Long-term and low-interest loans up to so much in yen
as shall be equivalent to two hundred million United States dollars ($200,000,000),
at present computed at seventy-two billion yen (\72,000,000,000),
which are requested by the Government of the Republic of Korea
and which will be covered by procuring the products of Japan
and the services of Japanese people necessary for implementing the enterprises
to be decided upon in accordance with arrangements to be concluded
under paragraph 3 within a period of ten years of the date
on which the present Agreement enters into force.

These loans shall be extended
by the Overseas Economic Cooperation Fund of Japan,
andthe Government of Japan shall take the necessary measures
to enable the Fund to secure the funds for equal annual loans.
The aforesaid supply and loans must serve the economic development
of the Republic of Korea.

2
There shall be established a Joint Committee composed of representatives
of the two Governments as an organ for consultation between them,
with the power to make recommendations on matters
concerning the implementation of the present Agreement.

3
The two Governments of the High Contracting Parties shall take measures necessary for the
implementation of this Article.

Article II

1

The High Contracting Parties confirm
that the problems concerning property, rights, and interests
of the two High Contracting Parties
and their peoples (including juridical persons)
and the claims
between the High Contracting Parties
and between their peoples,
including those stipulated in Article IV(a) of the Peace Treaty
with Japan signed at the city of San Francisco on September 8, 1951,
have been settled completely and finally.

2
The provisions of this Article shall not affect the following
(excluding those which become the objects of special measures
taken by either of the High Contracting Parties
prior to the date of the signing of the present Agreement):

(a)
The property, rights, and interests of the people
of either High Contracting Party who have ever resided
in the territory of the other High Contracting Party
in the period between August 15, 1947,
and the date of the signing of the present Agreement;
and

(b)
The property, rights, and interests of either High Contracting Party
and its people which were acquired or brought under the control
of the other High Contracting Party in the course of ordinary contacts
after August 15, 1945.

3
As a condition to comply with the provisions of paragraph 2 above,
no claims shall be made with respect to the measures
relating to the property, rights, and interests
of either High Contracting Party
and its people which were brought under the control
of the other High Contracting Party on the date of the signing
of the present Agreement,
or to all the claims of either High Contracting Party
and its people arising from the causes
which occurred prior to that date.

Article III

1
Any dispute between the High Contracting Parties
concerning the interpretation or the implementation
of this Agreement shall be settled primarily through diplomatic channels.

2
Any dispute which cannot be settled under the provision of paragraph 1
above shall be submitted for decision to an arbitral commission
of three arbitrators; one to be appointed by the Government
of each High Contracting Party within a period of thirty days
from the date of receipt by the Government
of either High Contracting Party
from that of the other High Contracting Party
of a note requesting arbitration of the dispute;
and the third to be agreed upon by the two arbitrators so chosen
or to be nominated by the Government of a third power
as agreed upon by the two arbitrators within a further period of thirty days.

However, the third arbitrator must not be a national
of either High Contracting Party.


3
If, within the periods respectively referred to,
the Government of either High Contracting Party
fails to appoint an arbitrator, or the third arbitrator
or the third nation is not agreed upon,
the arbitral commission shall be composed of one arbitrator
to be nominated by the Government of each of two nations
respectively chosen by the Government of each High Contracting Party
within a period of thirty days,
and the third arbitrator to be nominated
by the Government of a third power
decided upon by agreement between the Governments so chosen.


4
The Governments of the High Contracting Parties
shall accept decisions rendered by the arbitral commission
established in accordance with the provisions of this Article.


Article IV

The present Agreement shall be ratified. The instruments
of ratification shall be exchanged at Seoul as soon as possible.
The present Agreement shall enter into force
as from the date on which the instruments of ratification are exchanged.


IN WITNESS WHEREOF,

the undersigned, duly authorized thereto
by their respective Governments, have signed the present Agreement.


DONE
in duplicate at Tokyo, this twenty-second day of June
of the year one thousand nine hundred and sixty-five
in the Japanese and Korean languages, each text being equally authentic.

FOR JAPAN FOR THE REPUBLIC OF KOREA

Etsusaburo Shiina @@Tong Won Lee
Shinichi Takasugi @@ Dong Jo Kim