Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Joint statement by Prime Ministers on the defence relationships between Papua New Guinea and Australia



Download PDFDownload PDF

JOINT STATEMENT BY PRIME MINISTERS ON THE DEFENCE RELATIONSHIP BETWEEN PAPUA NEW GUINEA AND AUSTRALIA

The Prime Minister of Papua New Guinea, the R t . Hon. Michael Somare, M P , and the Prime Minister of Australia, the Rt. Hon. Malcolm Fraser, CH, MP, today issued a joint statement on the future defence relationship between Papua New Guinea and Australia.

The two Prime Ministers affirmed that both their Governments attached high importance to continuing the close co-operation between their two countries in defence matters. They acknowledged their Governments1 desire to

contribute to the strengthening of peace and stability in their common region. They declared that it was their Governments' intention to consult, at the request of either, about matters affecting their common security

interests and about other aspects of their defence relationship.

Mr. Fraser confirmed Australia's willingness to continue, at the request of the Papua New Guinea Government, to assist in the development of the Papua New Guinea Defence Force, and in development projects carried out by Australian

Service units in Papua New Guinea, through such arrangements a s :

- the attachment of Australian servicemen to the Papua New Guinea Defence Force

- the location in Papua New Guinea of formed

units of the Australian Services

- the provision of military training, both in Australia and Papua New Guinea

- the undertaking of joint projects which will develop particular Papua New Guinea Defence Force capabilities

- co-operation in combined exercises between the Australian ana Papua New Guinea forces in either country

- assistance with transport, logistic support and technical services .

The two Prime Ministers agreed that the continuation of such arrangements, and the details of their implementation, would be as decided by their two Governments from time to time.

. ../2

- 2-

The two Prime Ministers noted that both Governments had already entered into the following Agreement and subsidiary Arrangements negotiated by the Papua New Guinea Minister for Defence, the Hon. Sir Maori Kiki and the Australian Minister for Defence, the Hon.

D.J. Killen:

- a Status of Forces Agreement to make proper legal provision, in accordance with customary international practice, for the status of all Service personnel from either country present in the other. This Agreement would be registered with the United Nations;

- an Arrangement for continuing with the '

provision of supply support to the Papua New Guinea Department of Defence by the Department of Defence, Australia; and

- an Arrangement to continue with consultative procedures to ensure that there would be adequate and timely consultations between their two Governments on politically sensitive

situations in which Australian loan personnel might be involved.

Both Prime Ministers expressed their satisfaction and confidence that this joint statement, and the Agreement and Arrangements mentioned in it, appropriately reflected the desire of their Governments to maintain and develop the close and co-operative defence relationship between their two countries.

11 February 1977

AGREEMENT BETWEEN AUSTRALIA AND PAPUA NEW GUINEA

REGARDING THE STATUS OF FORCES OF EACH STATE

IN THE TERRITORY OF THE OTHER STATE

Australia and Papua New Guinea;

Recognising the high importance both Governments

attach to maintaining close co-operation in Defence

matters;

Having agreed that Service personnel and

Defence Force units from each country may from time to

time be present in the other country in accordance with

arrangements made between the two Governments;

Desiring to make provision for the status of

such personnel while in the other country;

HAVE AGREED as follows:

ARTICLE 1

DEFINITIONS

In this Agreement and its Annex:

(a) "authorised service organisation" means a body

organised for the benefit of, or to serve the

welfare of , members of a Visiting Force, the

civilian component or dependants;

(b) "civilian component" means civilian personnel

in the receiving State w ho, not being nationals

of, nor persons ordinarily resident in the

receiving State:

2 .

(i) are employed by or in the service of

a Visiting Force or an authorised

service organisation;

(ii) are serving with an organisation that

with the approval of the authorities

of the receiving State is accompanying

a Visiting Force; or

(iii) are attached to or accompanying the

Visiting Force and in accordance with

the law of the sending State, are subject

to the Service law of that State;

but does not include a dependant;

(c) "dependant" means a person who is neither a

national of nor ordinarily resident; in the

receiving State and who in relation to a

member of a Visiting Force or of the civilian

component is:

(i) the spouse of the member;

(ii) a part of the family of the member

residing with the member;

(iii) in the custody, care or charge of the

member; or

(iv) wholly or mainly maintained by the member,

other than as a servant or a member of

the servant's family;

(d) "loan personnel" means members of, and "loan

serviceman" means a member of, the Australian

Visiting Force on loan to and attached to the

Papua New Guinea Defence Force under section

30(2) of the Defence Act 1974 of Papua New Guinea;

(e) "receiving State" means the State in the

territory of which a Visiting Force is

located whether it be stationed there or in

transit;

(f) "sending State" means the State to which a

Visiting Force belongs;

(g) "Visiting Force" means members, including

loan personnel, or units of the Defence Force

of one State when in the territory of the other

State in connection with activities agreed

between the two Governments, provided that the

two Governments may agree that certain individuals

from units or formations shall not be regarded as

constituting or being included in a Visiting

Force for the purpose of this Agreement.

ARTICLE 2

COMPOSITION

The size and composition of a Visiting Force

and its civilian component of one State visiting the

other State and the conditions applicable insofar as

they are not laid down in the present Agreement shall be

the subject of mutually acceptable arrangements made

from time to time by the two States. A Visiting Force

may be accompanied by its civilian component and

dependants.

3.

ARTICLE 3

DUTY OF THE VISITING FORCE

It is the duty of Visiting Force authorities,

members of a Visiting Force, the civilian component and

4 .

dependants to respect not only the laws and customs of

the receiving State but also the spirit of them. The

Visiting Force authorities shall render all assistance

within their power to receiving State authorities to

prevent misuse of the privileges granted in this Agreement.

ARTICLE 4 .

CRIMINAL AND DISCIPLINARY JURISDICTION . : : : 1 ' ' Γ "

(1) Subject to the provisions of this article:

(a) the Service authorities of the sending

State shall have the right to exercise

within the territory of the receiving

State all criminal and disciplinary

jurisdiction conferred on them by the

law of the sending State over all persons

subject to the Service law of the sending

State; :

(b) the authorities of the Receiving State

shall have jurisdiction over members of

a Visiting Force, the civilian component . ' ' ' /

and dependants witti respect to offences

committed within the territory of the

receiving State and punishable by the law

of the receiving State.

(2) The Service authorities of the sending State

shall have the right to exercise exclusive jurisdiction

over persons subject to the Service law of the sending

State with respect to offences punishable by the law '

of the sending State but not by the law

State.

5 .

(3) The authorities of the receiving State shall

have the right to exercise exclusive jurisdiction over

members of a Visiting Force, the civilian component and

dependants with respect to offences punishable by the law

of the receiving State but not by the law of the sending

State.

(4) In the cases where the right to exercise

jurisdiction is concurrent the following rules shall

apply: '

(a) the Service authorities of the sending

State shall have the primary right to

exercise jurisdiction over persons subject

to the Service law of the sending State in

relation to : .

(i) offences solely against the property

or security of the sending State;

(ii) offences solely against the person or

property of a member of a Visiting

Force, the civilian component, or a

dependant of any of the foregoing; or

(iii) offences arising out of any act or

omission done in the performance of

official duty;

(b) in the case of any other offence the

authorities of the receiving State shall

have the primary right to exercise jurisdiction;

(c) for the purposes of sub-paragraph(a)(iii) of

this paragraph:

6 .

(i) a certificate issued by the designated

authorities of the sending State that

the offence arose out of an act or omission

done in the performance of official duty,

shall, in any proceedings before a

court or tribunal, be sufficient evidence

of the facts so certified, unless the . ... )

contrary is proved; '

(ii) v?hen the authorities of the receiving

State consider that the circumstances of

a particular case so warrant, they may

request that consultations take place

between the diplomatic authorities of the

sending State in the receiving State and

the authorities of the receiving State;

(d) if the State having the primary right under

this article decides not to exercise

jurisdiction, it shall notify the authorities

of the other State as soon as practicable. The

authorities of the State having primary

jurisdiction shall give sympathetic consideration

to a request from the authorities of the other

State for waiver of jurisdiction. Regard shall

be had for the responsibilities of the authorities

of the sending State for the good order and

discipline of persons subject to the Service law

of the sending State;

(e) for the purposes of sub-paragraph(a)(i) of

this paragraph an offence relating to the

security of the sending State shall include:

(i) treason against the St%te; and

(ii) sabotage, espionage or violation of

. any law relating to official secrets

of that State, or secrets relating

to the national defence of that State.

(5) Paragraphs (1) to (4) of this article shall

not confer on the Service authorities of the sending

State any right to exercise jurisdiction over persons

who are nationals of or ordinarily resident in the

receiving State unless they are members of a Visiting

Force.

(6) The designated Service authorities of the

sending State and the authorities of the receiving State

shall assist each other in the arrest of members of a

Visiting Force, the civilian component or dependants in

the receiving State and, subject to paragraphs (7), (8)

and (9) of this article, in handing them over to the

authority which is to exercise jurisdiction in accordance

with the above provisions.

(7) The designated authorities of the receiving

State shall notify promptly the designated Service

authorities of the sending State of the arrest of any

member of a Visiting Force, the civilian component or

of a dependant.

(8) Where the authorities of the receiving State

have arrested a person subject to the Service law of the

sending State with respect to an offence over which the

receiving and sending States have concurrent jurisdiction

the authorities of the receiving State shall release him

to the custody of the Service authorities of the sending

8 .

State pending completion of trial proceedings provided

that he shall, on request, be made available to the

authorities of the receiving State.

(9) In all other cases where the authorities of

the receiving State have arrested a member of a Visiting

Force, the civilian component or a dependant, the

authorities of the receiving State shall give sympathetic

consideration to a request by the authorities of the

sending State that he be released to the authorities of

the sending State pending completion of trial proceedings

provided that he shall, on request, be made available to

the authorities of the receiving State.

(10) The Service authorities of the sending State

and the authorities of the receiving State shall in all

cases including those giving rise to concurrent

jurisdiction'assist each other in the carrying out of

all necessary investigations into offences, and in the

.collection and production of evidence including the

seizure of and, in appropriate cases, the handing over of

objects in connection with an offence. The handing over

pf such objects may, however, be made subject to their

return within any reasonable time specified by the

authority delivering them.

,(11) Under this article the Service authorities of

the sending State and the authorities of the receiving

,State shall notify each other of the disposal of all

cases in which there are concurrent rights to exercise

jurisdiction.

fiVl) The Service authorities of the sending State

shall not carry out a death sentence in the receiving

. State.

9

(13) The receiving State shall not carry out the

death sentence on a member of the Visiting Force, the

civilian component, or on a dependant.

(14) Where an accused has been tried in accordance

with the provisions of this article by the Service

authorities of the sending State or by the authorities

of the receiving State, and has been convicted or

acquitted (which expressions shall include any other

final disposal of a charge) he may not be tried again

for the same or substantially the same offence by the

authorities of either State. This paragraph shall not

prevent the Service authorities of the sending State

from trying a member of the Visiting Force for any

violation of rules of discipline arising from an act or

omission which constituted an offence for which he was

tried by the authorities of the receiving State.

(15) In addition to the provisions of any agreement

entered into between Australia and Papua New Guinea

concerning the return of prisoners from one country to

the other, where a member of a Visiting Force, the

civilian component or a dependant has been sentenced

under the law of the receiving State to a term of

imprisonment and he makes a request, which is supported

by the authorities of the sending State, that his term of

imprisonment be served in the sending State, his request

shall be given sympathetic consideration by the authorities

of the receiving State.

(16) Whenever a member of a Visiting Force, the

civilian component or a dependant is prosecuted under the

jurisdiction of the receiving State he shall be entitled:

10.

(a) to a prompt and speedy trial;

(b) to be informed, in advance of trial, of

the specific charge or charges to be

made against him; ' ,-V

(c) to be confronted with-the witnesses

against him; 1

(d) to have compulsory process for obtaining

witnesses in his favour, if they are

within the jurisdiction of the receiving

State;

(e) to have legal representation of his own

choice for his defence or to have free

or assisted legal representation under the

conditions prevailing for the time being

in the part of the receiving State in

which he is being prosecuted;

(f) if he considers it necessary, to have the

services of a competent interpreter; and

(g) to communicate with a representative of

the sending State and, where the rules of

the court permit, to thave such a

representative at his trial.

ARTICLE 5 '

- JURISDICTION OF VILLAGE COURTS

(1) To the extent that they are not inconsistent

with paragraph (2) of this article, the provisions of

article 4 apply to J:he exercise of jurisdiction by a

Village Court over members of the Visiting Force, the

civilian component and their dependants.

11.

(2) Whenever a member of the Visiting Force, the

civilian component or a dependant is a party to

proceedings before a Village Court

(a) if he has been arrested:

(i) the authorities of Papua New Guinea

shall forthwith notify the Head

Australian Defence Co-operation

Group;

(ii) the authorities of Papua New Guinea

. shall as soon as practicable release

or transfer him to the custody of the

Australian authorities as the

circumstances require; and

(iii) the Australian Service authorities

shall ensure that he attends in

person on the date and at the time

and place appointed for the hearing

by the Village Court;

(b) the authorities of Papua New Guinea shall

forthwith advise the Head Australian

Defence Co-operation Group of the details

of the alleged offence or dispute and the

date, time and place -of the hearing in the

Village Court; -

(c) if the Village Court in the exercise of

its criminal jurisdiction makes an order

for the payment of goods or performance

of work, it shall also specify a fine

which may, in the alternative, be paid;

(d) if the Village Court in the exercise of

its civil jurisdiction orders the

12.

performance of work, it shall also

specify the amount of money which

may, in the alternative, be paid as

compensation or damages;

(e) if the proceedings relate to a matter

referred to in sub-section 24(3) of the

Village Courts Act:

(i) the Village Court, before making an

award, shall consult with the District

Supervising Magistrate and the

Australian Service authorities; and

(ii) any award so made may be varied on

appeal or review under section 52 of

the Village Courts Act if, in the

opinion of the Magistrate hearing

the appeal or conducting the review,

the award is either grossly excessive

or grossly inadequate;

(f) he shall be entitled to have, without

payment, the assistance of a suitable

interpreter; and

(g) he shall be entitled to be represented by

a member of the Defence Force or a

representative of the Government of

Australia who is not a legal practitioner.

ARTICLE 6

' CLAIMS , .

(1) Each Government waives all its claims against

the other:

13 ·

(a) for damage (including loss of use) to

property in the receiving State belonging

to, hired or chartered by either of them

and used by their defence forces if such

damage:

(i) was caused by an act or omission of

a member or an employee of the

defence force of the other Government

and arose out of and in the course

of the performance of his official

duty; or

(ii) arose from the use of vehicles,

vessels or aircraft belonging to,

hired or chartered by the other

Government and being used for the

performance of official duties in

the receiving State;

(b) for maritime salvage where the vessel or

cargo salvaged was owned by a Government

and being used by its defence force for

official purposes; and

(c) for damages for injury or death suffered

by a member of its defence force while

such member was engaged in the performance

of his official duties.

(2) The two Governments shall consult on the

settlement of claims by one against the other arising

from damage caused in the ways set out in sub-paragraph

(1)(a) of this article to other property belonging to,

hired or chartered by either Government or a political

14.

sub-division thereof and located in the receiving State.

(3) Claims arising out of acts or omissions of a

member of a Visiting Force, the civilian component or of

other servants or employees of a Visiting Force done in

the performance of official duty or out of any other act,

omission or occurrence for which the sending State is

legally responsible, and causing damage in the territory

of the receiving State to third parties, other than to

either of the two Governments, shall, except when the two

Governments otherwise arrange, be dealt with by the

Government of the receiving State in accordance with the

following provisions:

(a) claims shall be filed, considered and

settled or adjudicated in accordance with

the laws of the receiving State with

respect to claims arising from the

activities of the Defence Force of the

receiving State;

(b) the Government of the receiving State may

settle such claims, and payment of the

amount agreed upon or determined by

adjudication shall be made by the

Government of the receiving State;

(c) such payment, whether made pursuant to a

settlement or to adjudication of the case

by a competent authority of the receiving

State or the final adjudication by such an

authority denying payment, shall be binding

and conclusive discharge of the claim;

(

receiving State shall be communicated to

the appropriate authorities of the sending

State together with full particulars and a

proposed distribution in accordance with

sub-paragraph (3) (e) of this article. In

default of a reply within two months the

proposed distribution shall be regarded as

accepted;

(e) the cost incurred in satisfying claims

pursuant to the preceding sub-paragraphs '

of this paragraph shall be distributed

between the two Governments as follows:

(i) wherre the Government of the sending

State alone is responsible for the

damage the amount awarded or

adjudged and the costs associated

with the settling of the claim shall

be distributed in the proportion of

25 per cent chargeable to the

Government of the receiving State

and 75 per cent chargeable to the

Government of the sending State;

(ii) where the two Governments are

responsible for the damage or it is

not possible to attribute responsibility

for the damage specifically to either

Government such amount shall be

distributed equally between them.

(4) Every three months a statement of the sums paid

by each Government shall be sent to the authorities of

16,

the other Government together with a request for

reimbursement.

(5) Paragraphs (3) and (6) of this article shall

not apply to:

(a) claims arising out of the use of official

vehicles of the sending State which are

covered by insurance policies taken out in

accordance with the law of the receiving

State; and

(b) contractual claims.

(6) A certificate issued by the designated

authorities of the sending State that the claim arose

out of any act or omission done in the performance

of official duty shall be conclusive of that fact.

(?) The authorities of the two Governments shall

co-operate in the procurement of evidence for a fair

hearing and disposal of claims under this article.

(8) In the case of any private movable property

which is subject to compulsory execution under the law

of the receiving State and which is within an area in

use by the Visiting Force or the civilian component, the

authorities of the sending State shall, upon request,

assist the appropriate authorities of the receiving State

to take possession of such property.

(9) The sending State shall not claim immunity from

the jurisdiction of the courts of the receiving State for

members of a Visiting Force, the civilian component or

dependants in respect of the civil jurisdiction of the

courts of the receiving State.

17.

! ARTICLE 7

1 TAXATION

The taxation provisions to apply to members of

a Visiting Force, the civilian component and dependants

shall be as arranged by the two Governments.

ARTICLE 8

. LOCAL PURCHASES

' Subject to any wishes expressed by the

Government of the receiving State, the Government of

the sending State and its contractors and authorised

service organisations shall purchase locally produced goods

and commodities which they require for the official use

of a Visiting Force if they are available at a suitable

price and are of a standard required.

ARTICLE 9

, ENTRY PRIVILEGES (OFFICIAL PURPOSES) '

Vehicles, equipment, weapons, armaments,

provisions, supplies and other goods imported into or

acquired in the receiving State by the Visiting Force

for the official use of a Visiting Force shall be free

of all duties and taxes. Except as may be otherwise

arranged, title to such vehicles, equipment, weapons,

armaments, provisions, supplies and other goods shall

remain in the sending State, which may remove them from

the receiving State at any time, free from export duties

and related charges and restrictions, or otherwise dispose

of them in accordance with arrangements made between the

two Governments.

18.

ARTICLE 10

FIRST ENTRY PRIVILEGES (PRIVATE PURPOSES)

(1) The personal effects, furniture and household

goods, (other than motor vehicles, cigarettes, cigars,

tobacco and spirituous liquors) of a member of a Visiting

Force or the civilian component or a dependant, may at

the time of arrival of the member to take up service in

the receiving State or within six months thereafter, or,

in the case of a dependant, at the time of arrival of the

dependant to join a member or within six months thereafter,

be brought into the receiving State free of import duty,

including sales tax, provided the furniture and household

goods remain in the use, ownership and possession of that

member or dependant, or, with the permission of the

appropriate authority of the receiving State, of another

member or dependant during the period of two years

immediately after the date of importation.

(2) One motor vehicle owned and used outside the

receiving State by:

' (a) either a member of a Visiting Force or a

dependant of such a member; or

(b) either a member of the civilian component

or a dependant of such a member;

during the period of three months immediately preceding

his departure for that State shall be eligible for

admission into that State free of import duty, including

sales tax, provided that the vehicle remains in the use,

ownership and possession of that member, or, with the

permission of the appropriate authority of the receiving

19.

State, of another member during the period of two years

immediately after the date of its importation.

(3) Goods imported under paragraphs (1) and (2) of

this article shall not be disposed of within the

receiving State without prior permission of the authorities

of that State; they rnay, however, be freely exported without

payment of duty.

(4) Nothing in this article derogates from any

concessions or entitlements granted, from time to time,

in accordance with the law of the receiving State, to

persons entering that State.

ARTICLE 11

e x c h a n g e CONTROLS

(1) Members of the Visiting Force, the civilian

component and dependants shall remain subject to the

foreign exchange regulations of the sending State but

as regards acts done in the territory of the receiving

State shall also be subject to the exchange control

regulations of the receiving State.

(2) Remittances from the receiving State to the

sending State shall be permitted without restriction in

respect of:

(a) funds derived by members of a Visiting

Force and the civilian component from

services or employment in connection with

official duties;

(b) funds derived by members of a Visiting

Force, the civilian component or

dependants from sources outside the

20.

receiving State subject to any laws,

regulations or policies of the sending

State in that respect;

(c) the proceeds of the sale of personal

effects, furniture, motor vehicles and

other property used by a member of a

Visiting Force, the civilian component

or a dependant which are disposed of in

anticipation of the termination of his

services in the receiving State;

(d) funds belonging to an authorised service

organisation and derived from its

recognised trading activities.

(3) The preceding paragraphs shall not preclude the

transmission into or outside the receiving State of

foreign exchange instruments representing the official

funds of the visiting Force.

ARTICLE 12

REQUIREMENTS FOR ENTRY AND EXIT

(1) The Government of the receiving State shall

facilitate the admission of members of a Visiting Force,

the civilian component and dependants into, and their

departure from, the receiving State in connection with

activities agreed between the two Governments.

(2) The undermentioned documents only, which must

be presented on demand, shall be required in respect of

members of a Visiting Force seeking to enter the receiving

State on official duty:

(

appropriate authority of the sending State

showing full name, date of birth, rank

and number, Service and photograph;

(b) individual or collective movement order

issued by an appropriate authority and

certifying to the status of the individual

or group as a member or members of a

Visiting Force; and

(c) such documents conforming to standards

approved by the World Health Organisation

as may be issued by the appropriate

authorities of the sending State in

satisfaction of national health and

quarantine regulations of the receiving

State.

(3) Members of the civilian component and dependants

shall be required to be in possession of a valid national

passport and a certificate issued by the appropriate

authority of the sending State that the holder is a

member of the civilian component or a dependant. The

certificate will serve in lieu of a visa when travel is

undertaken under the authority of a movement order.

(4) Passports and visas will be required by members

of a Visiting Force, the civilian component and dependants

for exit and entry purposes when travelling outside the

receiving State other than on official duty under the

authority of a movement order.

(5) Members of a Visiting Force, the civilian

component and dependants shall be exempt from regulations

21.

22.

on registration and control of aliens, but shall not be

considered as thereby acquiring any right to permanent

residence or domicile in the receiving State.

(6) If a person admitted into the receiving State

in accordance with this Agreement ceases while still in

the receiving State to be a member of the Visiting Force,

the civilian component or a dependant, the Government of

the sending State shall, subject to the law of the sending

State, take steps to effect the departure from the receiving

State of that person within thirty days of his so ceasing

to be such a member or dependant, unless with the approval

of the Government of the receiving State other arrangements

are made. Where the former member or dependant has not

left the receiving State at the end of thirty days of his

ceasing to be a member or dependant and no other arrangements

have been approved by the Government of the receiving

State, the authorities of the sending State shall thereupon

inform the authorities of the receiving State, giving

particulars as may be required. Similar notification

shall be given to the authorities of the receiving State

concerning any members of a Visiting Force who, after

having been admitted to the receiving State, absent

themselves for more than twenty-one days, otherwise than

on approved leave.

(7) If the Government of the receiving State has

requested the removal from the receiving State of a

member of a Visiting Force, the civilian component or a

dependant admitted in accordance with this Agreement or

has made a deportation order against a former member or

dependant who has not formally been granted permanent

23.

residence in the receiving State, the authorities of the

sending State shall be responsible for the transportation

from the receiving State of the person concerned, and,

where applicable, his dependants without cost to the

Government of the receiving State.

ARTICLE 13

USE OF SERVICES AND FACILITIES

(1) , A Visiting Force and all persons associated

with its activities may use the public services and

facilities owned, controlled or regulated by the Government

of the receiving State or its instrumentalities. The

terms of use, including charges, shall be no less

favourable than those available to other users in like

circumstances unless otherwise agreed.

(2) No landing charges shall, however, be payable

by the Government of the sending State by reason of the

use by.its aircraft, or by civil charter operated on its

behalf in connection with a Visiting Force, of any airport

in the receiving State. The Government of the sending State

shall make such contribution to the maintenance and

operating costs of any airport in the receiving State as

may be fair and reasonable, having regard to the use made

of that airport by aircraft operating in connection with

activities of the sending State. The amount of such

contribution shall be the subject of arrangements between

the two Governments. Aircraft owned by or operated on

behalf of the Government of the sending State shall

observe local regulations relating to air traffic control

while in the receiving State.

(3) No toll charges, including light and harbour

dues, shall be levied upon vessels of the Visiting Force

using port facilities owned, controlled or regulated by

the Government of the receiving State or its

instrumentalities, nor shall such vessels be subject to

compulsory pilotage at these ports.

(4) Vessels, vehicles and aircraft of the Visiting

Force shall be exempt from any form of registration,

licensing, compulsory testing or taxation in respect of

their use in the receiving State. However, the authorities

of the sending State shall insure official vehicles of . ■ . ' % ' v ■ ■ ■ ■ '

the Visiting Force and civilian component against third

party risks in accordance with the laws of the receiving

State.

(5) For the purposes of paragraphs (3) and (4) of

this article, a vessel, vehicle or aircraft on hire or

charter to the Government or defence force of a sending

State shall, for the period that it is used exclusively

for the service of the Visiting Force, be deemed to be a

vessel, vehicle or aircraft of that Visiting Force.

ARTICLE 14

DRIVING LICENCES AND VEHICLE NUMBER PLATES

(1) The authorities of the receiving State shall

accept as valid, without a driving test or fee, a driving

permit or licence issued by the sending State to members

of a Visiting Force or the civilian component for the

purpose of driving official vehicles. For the purpose of

driving vehicles other than official vehicles, a driving

24·

25. .

permit or licence issued by the authorities of the

receiving State shall be obtained.

(2) Official vehicles of a Visiting Force shall

carry distinctive number plates.

(3) Privately owned vehicles of members of a

Visiting Force, the civilian component and dependants

shall carry number plates to be acquired under and

subject to the law of the receiving State.

ARTICLE 15

COMPULSORY SERVICE

Members of a Visiting Force, the civilian

component and dependants shall not be subject to any law

of the receiving State relating to liability for

compulsory service of any kind.

ARTICLE 16

POSTAL AND COMMUNICATIONS ARRANGEMENTS

(1) A Visiting Force may in accordance with

arrangements between the two Governments control and

operate in the receiving State facilities for communicating

with and reporting to the authorities of the sending State.

(2) A Visiting Force may, at installations and

facilities put at its disposal, establish and operate

military post offices for the handling of official

correspondence, documents, and non-official mail of

authorised individuals between these and other post

offices of the sending State. Detailed arrangements

for the interchange of mails with or through the postal

services of the receiving State shall be as mutually

arranged.

Η * *

' 26.

(3) The authorities of the receiving State shall

not inspect official mail in the military postal channels

of the sending State. Any inspection of non-official

mail in such channels which may be required by the

regulations of the receiving State shall be conducted by

the authorities of the receiving State in accordance with

procedures to be arranged between the appropriate

authorities of both States.

(4) Telecommunication facilities operated in

pursuance of paragraph (1) of this article shall not be

used for the transmission of non-official communications.

Non-official communications shall be transmitted by the

public telecommunications services of the receiving State

at the charges applicable to the nationals of the

receiving State for equivalent transmissions.

(5) The provisions of the International Telecommuni­

cation Convention and of the Regulations and Recommend­

ations associated with that Convention shall be observed

in relation to any telecommunication facility operated in

pursuance of paragraph (1) of this article.

(6) Arrangements made in pursuance of paragraph (1)

of this article for the operation of telecommunications

facilities shall include arrangements for the receiving

State to approve the proposed route of any telecommuni­

cations cable to be laid in the receiving State and the

proposed frequency and power of any wireless transmitter

to be operated from the receiving State. Facilities

shall not be operated except in accordance with approved

proposals. Where a facility operates otherwise than in

accordance with approved proposals by reason of the

27.

malfunction of equipment, the Visiting Force shall, at

the request of the authorities of the receiving State,

suspend the operation of the facility until the

malfunction is corrected.

ARTICLE 17 ‘

UNIFORMS ·

Members of a Visiting Force may wear the uniform

of the sending State in performing official duties in the

receiving State.

ARTICLE 18

CONFORMITY WITH LAWS

Consistently with arrangements for the time being

in force between Australia and Papua New Guinea, a

Visiting Force and its members and the civilian component

and dependants shall conform to the provisions of the law

of the receiving State, including quarantine law and

industrial awards and determinations.

ARTICLE 19

CARRIAGE OF ARMS

Members of a Visiting Force may possess and

carry arms in the receiving State on condition that they

are authorised to do so by their orders, provided that

arrangements regarding the carrying of arms outside areas

and facilities in use by the Visiting Force are to be

made between the appropriate authorities of the two States.

ARTICLE 20

AUTHORISED SERVICE ORGANISATIONS

The Government of the receiving State shall

28.

permit in its territory the operation of authorised

service organisations of the sending State in accordance

with arrangements made between the appropriate authorities

of the two States.

ARTICLE 21

BANKING FACILITIES

Where the authorities of the sending State judge

that suitable banking services of the receiving State are

not available in some locations in that State, members of

the Visiting Force in those locations shall have right of

access to banking services provided by the sending State

provided that banks in the receiving State have indicated

that they are not prepared to provide, or have not within

a reasonable time provided, suitable banking services for

members of the Visiting Force. Prior to such banking

services being provided by the sending State, that State

shall inform the appropriate authorities in the receiving

State of its intention to establish banking services in

the receiving State and shall conform in every respect

with any conditions imposed by the relevant authorities

in the receiving State.

ARTICLE 22

p e r s o n n e l SERVICES

(1) The authorities of the receiving State shall be

responsible, on request from the authorities of the

sending State, for the provision of the following

services in respect of the Visiting Force, the civilian

component, dependants and authorised service organisations

(a) working accommodation;

(b) - residential accommodation;

(c) food services in defence force

installations;

(d) health care services in defence force

installations.

(2) The detailed arrangements relating to the

provision of such services, including the requirements of

the sending State, and the scales and standards of

accommodation to be provided, shall be the subject of

mutually acceptable arrangements made from time to time

by the authorities of the two States..

(3) The Government of the sending State shall

reimburse the Government of the receiving State for

expenses involved in these arrangements at such rates as

are agreed from time to time between the authorities of

the two States.

29.

ARTICLE 23

SECURITY

(1) A Visiting Force shall have tb? right to take

such lawful measures as it deems necessary to ensure the

maintenance of order and security on land, premises and

places which it occupies as the result of arrangements

with the receiving State.

(2) The authorities of the two States shall

co-operate in taking such steps as from time to time may

be necessary to ensure the security of such premises and

of the equipment, property, records and official

information of a Visiting Force, its members, civilian

component, dependants and their property.

ARTICLE 24• . . » ■ ■ ■ ■ ■■■■■■■ ------ . . ' I ' ■

f l y i n g o f f l a g s

Wherever the flag of the sending State is flown

at premises occupied by a Visiting Force, the flag of the

receiving State shall be flown on a separate and adjacent

flagstaff. ,

ARTICLE 25

LOAN PERSONNEL ·

The provisions of this Agreement apply to loan

personnel with such modifications, additions or exceptions

as are provided in the Annex to this Agreement.

ARTICLE 26

CONSULTATIONS

Any matter arising under this Agreement with

respect to its interpretation, application or implementation

shall be settled by consultation or negotiation between

the two Governments.

30.

ARTICLE 27

VARIATION AND SUSPENSION

The Governments may agree at the instance of

either Government to a variation or suspension, on

reasonable notice, of this Agreement or a part or parts

hereof.

ARTICLE 28 ■ . . I — : . . . . . . . . . . . . . . . . . . . . .- - - - - .

TERMINATION

This Agreement shall enter into force on the

date of signature, and shall remain in force until the

expiration of 180 days from the date on which either

Government gives to jthe other Government notice, in

writing, that it desires to terminate the Agreement.

■ 31. ' . '

IN WITNESS WHEREOF the undersigned acting with due

authority have signed this Agreement.

DONE at Port Moresby in two originals, this 26th

day of January, One thousand nine hundred and

seventy-seven.

(T. Critchley) (John Guise)

for Australia for the Independent State

of Papua New Guinea

ANNEX TO THE AGREEMENT BETWEEN

AUSTRALIA AND PAPUA NEW GUINEA

REGARDING THE STATUS OF FORCES

OF EACH.STATE IN THE TERRITORY

OF THE OTHER STATE :

SPECIAL PROVISIONS RELATING TO AUSTRALIAN

LOAN PERSONNEL IN PAPUA NEW GUINEA

ARTICLE 1

RELATIONSHIP WITH PAPUA NEW GUINEA DEFENCE FORCE

The following provisions shall apply in regard

to the relationship of loan personnel to the Papua New

Guinea Defence Force:

(a) a loan serviceman shall have the same

obligations and will be entitled to the

same privileges as a member of the Papua

New Guinea Defence Force of equivalent

rank;

(b) a loan serviceman shall have the same

powers of command and discipline over

members of the Papua New Guinea Defence

Force as if he were a member of that

Force holding the rank in that Fotce

which is equivalent to the rank held by

him in the Australian Defence Force. He

is bound by Defence Council Orders, in

accordance with their tenor, and is

required to obey orders and carry out

instructions of a member of superior

equivalent rank in the Papua New Guinea

2.

Defence Force, provided that such orders

or instructions are not inconsistent with

his duties under the law governing the

Defence Force of Australia (including his

duties under any instrument having the

force of law), and would, if given in

similar circumstances by a person subject

to the Service law of Australia, constitute

a lawful command under the Service law of

Australia;

(c) a loan serviceman is subject to the Defence

Act of Papua New Guinea, with the exception

of the Code of Military Discipline and

section 60 of that Act, but is not subject

to the jurisdiction of any authority, court

or tribunal established under or exercising

powers contained in the Defence Act and the

Code of Military Discipline. A loan

serviceman charged with an offence shall

be charged under, and tried in accordance

with, the Service law of Australia;

(d) a loan serviceman will retain the right of

personal access to Head Australian Defence

Co-operation Group.

. ARTICLE 2

CRIMINAL AND DISCIPLINARY JURISDICTION

(1) In the application of article 4 of the Agreement

to loan personnel the following sub-paragraph will apply

instead of sub-paragraph (4)(c) of that article:

"(c) for the purposes of sub-paragraph (a)(iii)

of this paragraph:

(i) where an offence has arisen out_ of

λ an act or omission done in the

' ' ' · ' · : · · %

. performance of official duty, the

Service authorities of Papua New

Guinea shall issue a certificate to

that effect and such certificate

shall be sufficient evidence of the

facts so certified unless the

contrary is proved;

(ii) a copy of the certificate shall be

forwarded to the Service authorities

of Australia;

(iii) in the event that the Service

authorities of Papua New Guinea

decline to issue such a certificate

the Service authorities of Australia

may ask that consultations take

place between the diplomatic

authorities of Australia in Papua

New Guinea and the authorities of

Papua New Guinea."

(2) Where a loan serviceman has been arrested by the

designated Service authorities of Papua New Guinea at the

request of the designated Service authorities of Australia

for an offence against the provisions of the Service law

of Australia he will be handed over immediately to the

appropriate Service authority of Australia.

3.

; 4. ·

ARTICLE 3

CLAIMS

In the application of .article* 6 of the Agreement

paragraphs (3),(4),(5) and (6) thereof shall not apply

and the following alternative provisions shall apply to

loan personnel:

(a) all claims arising out of acts or

omissions of loan personnel done or

omitted in the course of their official

duty as such shall be dealt with by the

Government of Papua New Guinea and settled

at the cost of the Government of Papua

New Guinea;

(b) a loan serviceman shall not be subject to

any proceedings for the enforcement of any

judgement or order given or made against

him in Papua New Guinea in a matter which

arises in the course of his official duty;

(c) nothing in this article shall prevent a

loan serviceman being held responsible for

loss or damage to propert- of or held for

the Government of Papua New Guinea or any

of its statutory authorities or instrument­

alities and in his charge or care where

such loss or damage is caused by an act or

omission involving fraud, dishonesty or

wilful misconduct in the performance of

official duty by the loan serviceman;

(d) if the appropriate authorities of Papua

New Guinea are satisfied that a loan

5.

serviceman is responsible for loss or

damage of the kind referred to in the

preceding sub-paragraph they may forward

full particulars of such loss or damage

and of the surrounding circumstances to

the Service authorities of Australia who

shall if satisfied as to his responsibility

invite the serviceman to pay such amount

(not exceeding the amount of the loss or

damage) as is determined by the authorities

of Papua New Guinea and any payment so made

on account of such loss or damage shall be

forwarded to the Government of Papua New

Guinea. Nothing in this sub-paragraph in

any way derogates from any right in the

Government of Papua New Guinea to pursue a

claim through non-Service procedures available

’ to it from time to time outside these

arrangements in respect of any unpaid part

of such claim or in respect of a claim which

is not satisfied within e. reasonable time

under the above procedures;

(e) the Government of Papua New Guinea shall

make good loss or damage to uniforms and

Service equipment (but not personal effects)

of loan personnel occasioned by the

performance of their official duties;

(f) the Government of Papua New Guinea will

consider claims by loan personnel for loss

of or damage to their personal effects

I

6.

(including, for the purposes of this

sub-paragraph, household goods, motor cars

and motor cycles) arising out of civil

disturbances or riots to the same extent,

if any, as it would in the case of claims

by its own Service personnel.

ARTICLE 4

CARRIAGE OF ARMS

The following provision shall apply to loan

personnel in lieu of article 19 of the Agreement:

"Loan personnel may possess and carry arms in

Papua New Guinea on condition that they are authorised to

do so by their orders as members of the Papua New Guinea

Defence Force." '

ARTICLE 5

DRIVING LICENCES

The authorities of Papua New Guinea shall issue

without fee a driving permit or licence to a loan

serviceman if required for the purpose cf driving

official vehicles of Papua New Guinea.

ARTICLE 6

SECURITY

• The Government of Papua New Guinea will take

such steps as from time to time may be necessary to

ensure the security of loan personnel and dependants and

their property.

7.

ARTICLE 7 ·

PERSONNEL s e r v i c e s

In respect of loan personnel and dependants the

Government of Papua New Guinea shall be responsible for

the provision of those personnel services referred to in

paragraph 22(1) of the Agreement on the terms and

conditions referred to in paragraphs 22(2) and 22(3) of

the Agreement.

COMMONWEALTH OF AUSTRALIA

M IN IS T E R FOR D E F E N C E

PA RLIA M EN T HOUSE

CANBERRA A .C.T . 2600

2 1 J A N 1977

My dear Minister,

I refer to discussions between us on the question of continued co-operation between our two countries in the field of defence.

In the course of these discussions, our two Governments agreed to continue with consultative procedures which we have had as part of the interim defence arrangements to ensure that there would be

adequate and timely consultations on politically sensitive situations in which Australian loan personnel might be involved. These arrangements are set out in the attachment to this letter.

I propose that, if the foregoing is acceptable to the Government of Papua New Guinea, this letter and the attached "Consultations Regarding the Use of Australian Loan Personnel in Politically Sensitive

Situations" together with your confirmatory reply, will constitute an arrangement between the Government of Australia and the Government of Papua New Guinea on this matter.

Yours sincerely,

The Honourable Sir Maori Kiki, K.B.E., M.P., Minister for Defence, National Parliament, PORT MORESBY.

Papua New Guinea

CONSULTATIONS REGARDING THE USE OF AUSTRALIAN LOAN PERSONNEL IN POLITICALLY SENSITIVE SITUATIONS

It is the intention of the Papua New Guinea Government and the Australian Government that Australian Service personnel on loan to the PNGDF serve essentially as full members of the PNGDF and be available for all the normal duties of their appointments.

2. At the same time, the Papua New Guinea and

Australian Governments have an interest in avoiding or minimising the use of Australian loan personnel in circumstances where either Government considers that such use could cause political difficulty for itself or

for both Governments; decisions to use loan personnel in situations where either Government considers they would cause political difficulty must be taken jointly by the two Governments.

3. Any decisions regarding limitations on the use

of Australian loan personnel will be guided by:

a. greater concern to avoid the direct involvement of Australian loan personnel in combat roles than to involve them in non-combat and

supporting roles; and

b. particular reluctance for specialist, technical, and other essential Service personnel to be withdrawn in a time of crisis.

4. The two Governments recognise that adequate and

timely consultation is essential to meet the foregoing requirements without or with minimum disturbance to the smooth operation of the PNGDF. To this end both Governments are agreed that the PNG authorities will in good time provide to the Australian High Commissioner

information, reports and assessments about politically sensitive situations in which Australian loan personnel might be involved. These arrangements will include direct consultation between the Australian High

Commissioner and relevant PNG authorities and Ministers.

ι- ,

MINISTER FOR DEFENCE PAPUA NEW GUINEA .

Central Government Offices, WAIGANI

21st January, 1977.

My dear Minister,

J acknowledge receipt of your letter of today's date together with the attached "Consultations Regarding the Use of Australian : Loan Personnel in Politically Sensitive Situations".

The text of that letter reads as follows:

"I refer to discussions between us όή the question of continued co-operation between our two countries in the field of defence. ,

In the course of these discussions, our two Governments agreed to continue with consultative procedures which we have had as part of the interim defence arrangements . to ensure that there Would be adequate and timely con­ sultations on politically sensitive situations in which Australian loan personnel might be involved. These

arrangements are set out in the attachment to this letter·

I propose that, if the foregoing is acceptable to the Government of Papua New Guinea, this letter and the attached "Consultations Regarding the Use of Australian Loan Personnel in Politically Sensitive Situations"

together with your confirmatory reply, will constitute an arrangement between the Government of Australia and the Government of Papua New Guinea on this ma' cer.”

I wish to confirm that the foregoing arrangement is acceptable to the Government of Papua New Guinea and that your letter and the attached "Consultations Regarding the Use of Australian Loan Personnel in Politically Sensitive Situations" together with this reply will constitute an arrangement between our

The Hon. D.J. Killen, M.P ., Minister for Defence, Parliament House, ···.·.

CANBERRA A.C.T. 2600 ■

two Governments in the matter*

Yours sincerely,

MAORI KIKI.

I M I N I S T E R F O R D E F E N C E

■ '· ' i ' . ■ . .

P A R L I A M E N T H O U S E

: C A N B E R R A A . C . T . 2600

x 2 1 JAN 1977

' ■ .■ i ■

My dear Minister,

I refer to discussions between us on the question of continued co-operation between our countries in the field of defence.

In thex course of these discussions , our two Governments agreed to continue with the provision of supply support to the Papua New Guinea Defence Force by the Department of Defence, Australia.

The Arrangement proposed for the continuation of this supply support is set out in the attachment to this letter.

COMMONWEALTH OF AUSTRALIA

I propose that, if the foregoing is acceptable to the Government of Papua New Guinea, this letter and the attached "Arrangement for the Supply Support of the Papua New Guinea Department of Defence by the Department of Defence, Australia " t

together with your confirmatory reply, will constitute an arrangement between the Government of Australia and the Government of Papua New Guinea on this matter.

Yours sincerely,

(D.J. KILLEN)

The Honourable Sir Maori Kiki, K.B.E., M.P., Minister for Defence, National Parliament, PORT MORESBY.

Papua New Guinea

ARRANGEMENT FOR THE SUPPLY SUPPORT OF THE

PAPUA NEW GUINEA DEPARTMENT OF DEFENCE BY THE

DEPARTMENT OF DEFENCE, AUSTRALIA

Purpose

A. The purpose of this Arrangement is to enable the Papua New Guinea Department of Defence to use the organisation and facilities of the Australian Department of Defence logistic system to support Papua New Guinea Department of Defence owned equipment of Australian origin and

items manufactured in a third country which are carried in both the Australian Defence Force and the Papua New Guinea Defence Force (PNGDF) inventory.

B. The support made available under this Arrangement is to include materiel supply, repair support, documentation and product support, provided that such support can be given without detriment to the Australian Services requirements. Materiel supply

includes provision of repair parts, ammunition, foodstuffs and items of a minor nature.

C. This Arrangement will permit the Papua New Guinea Department of Defence to obtain under a system of agreed and assigned priorities, logistic support equivalent in the timeliness and effectiveness to that provided to the Australian Defence Force, and provides for the Papua New

Guinea Department of Defence to reimburse Australia for materiel and service provided.

Materiel Requirements

A. The determination of equipment to be supported by Australia will Le made jointly by Australia and Papua New Guinea on the basis of commonality of equipment between the two countries and the Papua New Guinea assessment of

its own logistic support capability.

B. In order to facilitate planning for materiel supply in the Australian Department of Defence supply system the PNG Department of Defence will provide the Australian Department of Defence with a statement of its policy in respect of the

regulation of stock levels and the frequency of replenishment for the various classes of stores to be provided under the Arrangement. During the currency of the Arrangement, parties will consult on significant changes affecting this policy.

2.

C. Stocks of repair parts and an agreed selection of minor items will be provided for in the Australian supply system and will be supplied . to the Papua New Guinea Department of Defence on

requisition and repayment.

D. Australia will undertake to seek permission to resell items of third country origin to the Papua New Guinea Department of Defence where such permission is required.

E. Where an equipment held in both the PNGDF and Australian Defence inventory is to be removed from the Australian inventory, the Papua New Guinea Department of Defence will be offered . repair parts on an all time buy basis before

disposal action commences. ‘

F. When notification is received that an equipment held in both the PNGDF and Australian inventory is to go out of production, the Papua New Guinea Department of Defence will be given

the opportunity under agreed procedures and conditions, to join in the Life-of-Type purchase.

G. At the request of the Australian Department of Defence the Papua, New Guinea Department of Defence m a y , to the extent compatible with its own requirements, resell to Australia, at a fair price to be mutually agreed upon, common items previously supplied to Papua New Guinea under

this Arrangement.

H. Ammunition and explosives may be provided to meet normal training commitments. Special requirements are to be separately negotiated.

III. Repair Support

A. Australia will provide repair support for Papua New Guinea Department of Defence owned equipment in accordance with Australian repair policy. The level of repair to be performed is

to be nominated by PNGDF or the appropriate Australian Service for each equipment. The cost of such repairs is to be borne by the Papua New Guinea Department of Defence.

B. The normal system of repair support will be by exchange of assemblies. In certain instances, where assemblies are in short supply it may not be possible to provide an exchange assembly on

request. Specified repair for certain major equipments not included in the exchange system may be negotiated through Headquarters Australian Defence Co-operation Group with the Australian Defence

Services.

D o c u m e n t a t i o n

A. Initial documentation required to operate, maintain and repair equipment should be purchased by the Papua New Guinea Department Of Defence at the time of procurement of the item. Any subsequent special requirements for this

documentation may be purchased by the Papua New Guinea Department of Defence within the term of this Arrangement.

B. Australia agrees to provide at no cost to the Papua New Guinea Department of Defence all the necessary information to maintain the documentation which is common to both the PNGDF and the Australian Defence.Force.

P ro due t Suppo rt

A. The Australian Defence Force may provide Pattern Documents subject in each case to negotiation.

B. The Papua New Guinea Department of Defence may report defect incidents through HQ ADCG for channelling to the Australian Defence Force for investigation. Where investigation indicates

that modification of the Australian item is required, Australia will provide to the Papua New Guinea Department of Defence, at no charge, details of the modification. Modification kits will be provided on demand and at an agreed cost

to the Papua New Guinea Department of Defence.

C. The Australian Defence Force may provide a technical consultative service to PNGDF where such service can be provided from information already available. No charge is to be made for this service.

D. Quality Assurance services may be provided by Australia for the Papua New Guinea Department of Defence procurement of equipment outside the Australian Department of Defence Logistic System but only if procurement is through the Defence

Logistic System. Quality Assurance services are automatically provided when equipment is supplied from the Australian Department of Defence Logistic System.

Standardisation

A. The Australian Department of Defence and the Papua New Guinea Department of Defence agree to exchange information to enable equipment standardisation to be maintained.

4

i

B. Standardisation will be essential in relation to items covered by the Arrangement. However, standardisation beyond this will be tempered by Papua New Guinea's own special

requirements. .

VII. Requisitions and Issues

A. The Papua New Guinea Department of Defence is to forward its requisitions from one central point in Papua New Guinea to HQ ADCG. Issues will be made from supply points as determined by

the appropriate Service, to a freight forwarder designated by Papua New Guinea.

B. The Papua New Guinea Department of Defence is to arrange for import and export licences, insurance and shipping.

VIII. Support Priority

The Australian Standard Materiel Issue and Movement Priority System (AUSMIMPS) provides for requisitions to be satisfied within specified

times according to the combination of the users assigned mission (Force Activity Designator) and degree of urgpncy (Urgency of Need) giving A.

Priority Designator. Assignment of Force Activity Designators to PNGDF for varying circumstances is to be by agreement between Commander PNGDF and the Chief Defence Force

Staff Australia.

IX. Financial Arrangements

A. The amount to be billed for issues made from Australian supply depot stocks is the current Australian catalogue rate or into store cost, plus an agreed on-cost to cover administrative

and handling costs.

B. Where arrangements are made to exchange equipments, assemblies or components, the amount to be billed will be expressed as a percentage of the cost plus the on-cost. The percentage charge for each item is to be assessed by the Australian Services and agreed by the Papua New Guinea Department of Defence for each item.

C. Consolidated billings in Australian currency are to be submitted monthly to a point to be designated by the PNG Department of Defence. Billings are to be accompanied by supporting documents for transactions identification. , Payment is due on presentation of the billings.

X.

5

Papua New Guinea Department of Defence Use of Australian Origin Items

Items of Australian manufacture sold to Papua New Guinea under this Arrangement may be employed without let or hindrance from Australia. Items of third country manufacture are to be employed in accordance with the conditions imposed by the third country.

XI. Review and Termination

A. This Arrangement may be mutually reviewed annually.

B. Either Government may terminate the Arrangement by giving 180 days notice of termination. During this period, requisitions will be accepted and actioned in the normal manner.

Working Procedures

Working procedures negotiated to give effect to this Arrangement may be reviewed and amended by agreement as necessary.

XII

J f ■ > ”

MINISTER FOR DEFENCE PAPUA NEW GUINEA

Central Government Offices, WAIGANI .

21st January, 1977.

My dear Minister,

I acknowledge receipt of your letter of today's date together with the attached "Arrangement for the Supply Support of the Papua New Guinea Department of Defence by the Department of Defence, Australia".

The text of that letter reads as follows:

"I refer to discussions between us on the question of continued co-operation between our countries in the field of defence. , ■

In the course of these discussions, our two Governments agreed to continue with the provision of supply support to the Papua New Guinea Defence Force by the Department of Defence, Australia. The arrangement proposed for the continuation of this supply support is set out in the attachment to this letter. ,

X propose that, if the foregoing is acceptable to the Government of Papua New Guinea, this letter and the attached "Arrangement for the Supply Support of the Papua New Guinea Department of Defence by the Department of Defence, Australia", together with your confirmatory reply, will constitute an arrangement between the Government of · Australia and the Government of Papua New Guinea on this

matter."

I.wish to confirm that the foregoing arrangement is acceptable to the Government of Papua New Guinea and that your letter and the attached "Arrangement for the Supply Support of the Papua New Guinea Department of Defence by the Department of Defence, Australia" together with this reply will constitute an arrangement between our two Governments in the matter.

The Hon. D.J. Killen, M.P., Minister for Defence, Parliament House, CANBERRA, A.C.T. 2600

Yours sinparely

MAORI KIKI