0.192.122.972.0

Exchange of letters of 13/26 July 1979

Between the Federal Department of Foreign Affairs
And the International Fund for Agricultural Development on Privileges
And immunities of the Fund in Switzerland

Entered into force with effect from 30 November 1977

(State 1 ^Er May 2012)

Original text

Federal Department	Bern, 13 July 1979
Foreign Affairs
	Mr.
	Abdelmuhsin Mr. AI-Sudeary
	President of the International Fund
	Agricultural Development Fund (IFAD)
	107, Via del Serafico
	Rome

Mr President,

I have the honour to refer to the discussions that have taken place on the realization of the privileges and immunities referred to in s. 10, section 2, para. (a) Agreement establishing the International Fund for Agricultural Development of 13 June 1976 ¹ And the International Fund for Agricultural Development needs to carry out its functions and achieve its objective.

I also have the honour to confirm that the discussions have resulted in the following definitions of some of these privileges and immunities, of which the International Fund for Agricultural Development (hereinafter "the Fund") will be located on Swiss territory:

1.

The assets and assets of the Fund in Switzerland shall not be subject to search, requisition, confiscation, expropriation or any other form of executive, administrative, judicial or legislative constraint.

2.

Without being bound by any financial control, regulation or moratorium:

A.

The Fund may hold any funds, gold or currency and hold accounts in any currency;

B.

The Fund may freely transfer its funds, gold or currency to Switzerland, outside Switzerland, or within Switzerland and convert any currency held by it into any other currency.

In exercising the rights granted to it under this Article, the Fund shall take into account all representations of the Swiss Federal Council in so far as it considers that it will be able to act on it without prejudice to its own interests.

3.

The Fund, its assets, income and other assets are:

A.

Exempt from any direct, federal, cantonal or communal tax. It is understood, however, that the Fund will not seek exemption from taxes that would in fact be merely remuneration for public services;

B.

Exempt from tax anticipated under the Federal Act of October 13, 1965 ² On advance income tax. The exemption is made by the refund to the Fund of Perceived Rights on its assets.

3 ^Bis . ³

The Fund is exempt from federal, cantonal and communal indirect taxes. In particular, it is exempt from the value added tax (VAT) for all acquisitions intended for official use and for all services provided for official use, in accordance with Swiss law. Where applicable, the exemption will be effected by way of reimbursement, at the request of the Fund and following a procedure to be determined between the Fund and the competent authorities.

3 ^Ter . ⁴

The customs processing of objects intended for the official use of the Fund is governed by the order of 13 November 1985 concerning the customs privileges of international organisations, states in their relations with these organisations and Special missions of foreign states. ⁵

4.

Any difference of opinion concerning the application or interpretation of these provisions, which could not be resolved through direct talks between the parties, may be submitted by either party to a three-member arbitral tribunal. The Federal Council and the Fund will each designate one. The designated members shall select their chairperson. In the event of disagreement between the members concerning the person of the President, the President shall be appointed by the President of the International Court of Justice. The court shall determine its own procedure.

Upon receipt of a letter from you indicating that the above provisions meet with the approval of the Fund, the Federal Council will consider this letter and your letter referring thereto as an agreement within the meaning of Art. 10, section 2, para. (b) (iii) of the Agreement establishing the International Fund for Agricultural Development, effective from the date of your letter of reply with retroactive effect to November 30, 1977. This Agreement may be terminated by each party at any time on written notice of 6 months.

I would like to take this opportunity to renew, Mr President, the assurance of my high regard.

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RO 1979 1566