31 DE MAIO DE 1978 810-(5)

1978 and shall be utilized in accordance with the provisions of the Agreement on Development Cooperation relating to that period.

ARTICLE II Utilization of the resources

The resources shall be utilized in accordance with this Agreement and its annexes, as amended from time to time for such purposes and subject to such terms and conditions as may be agreed upon between the Parties.

ARTICLE III

Financial resources

1 — No currency or foreign exchange controls ox charges shall be imposed on financial resources brought into Portugal by Sweden for development co-operation purposes. A Treasury account shall be opened in Portugal for such resources and be used exclusively for such purposes as agreed upon. Balances on that account shall be freely transferable into Swedish or any other convertible currency.

2— When financial resources shall be used for procurement of goods and services the following shall apply:

Unless otherwise agreed, Portugal shall procure or cause to be procured such goods and services;

Sweden undertakes to assist Portugal in the procurement if the Parties so agree.

3 — Portugal shall seek to ensure that purchases are made from the most competitive sources of supply.

4 — Regarding delivery of commodities in which Sweden is to assist, the provisions in annex n shall apply.

ARTICLE IV Personnel and consulting services

1 — For the purpose of this Agreement the term «personnel» shall mean persons contracted by Sweden and made available to Portugal.

2— In the performance of their duties, personnel shall be under the exclusive direction of Portugal or the agencies or organizations to which they are assigned. The personnel shall comply with laws, orders and regulations in force in Portugal, unless otherwise provided for in this Agreement or any other Agreement referring to this Agreement.

3.1 —Portugal shall hold Sweden and the personnel serving in Portugal in accordance with this Agreement harmless against any liability, suit, action, demand, damage, cost or fee on account of death, injury to person and property or any other losses resulting from or connected with any act performed or omission made when the personnel perform their duties on behalf of the employer.

3.2 — However, if claims arise in a case where gross negligence or wilful intention on the part of the personnel has been established by a Portuguese court, Portugal may hold the person concerned liable to indemnify Portugal.

3.3 — If Portugal has to deal with any claim in accordance with this paragraph, Portugal shall be entitled to exercise and enforce the benefit of any defence or right to set-off, counterclaim, insurance, indemnity, contribution or guarantee to which such personnel become entitled.

3.4 — Sweden shall not withhold from Portugal access to personnel, information or other assistance reasonably required for the handling of any matter to which this paragraph relates.

4 — In the event of arrest or detention, for any reason whatsoever, of any person made available by Sweden or of their spouses or dependants or of criminal proceedings being instituted against them, the Swedish Embassy shall be notified without delay.

5 — Portugal may request the recall or replacement of any person made available in accordance with this Agreement, whose work or conduct is deemed unsatisfactory. Before making any such decision, Portugal shall consult with Sweden.

6 — Sweden may recall the personnel made available in accordance with this Agreement. Before deciding to recall, Sweden shall, unless exceptional circumstances dictate otherwise, consult with Portugal for that purpose as well as on arrangements for securing rapid replacement of such personnel

7 — For the purpose of this Agreement, the term ((consulting services)) shall mean services performed by consulting firms under contracts with Sweden and made available to Portugal.

8 — The provision concerning personnel, as stated above, shall also apply to non-resident personnel used for performing consulting services.

9 — The procedures and further obligations of the two Governments in regard of personnel and consulting services shall be as set forth in annex zn and IV.

ARTICLE V Equipments and commodities

All equipment and commodities made available by Sweden to Portugal shall, unless otherwise agreed, upon entry into, or upon procurement in Portugal, become and remain the property of Portugal. No customs duties, taxes or related fees shall be charged to Sweden by Portugal for such equipment or commodities.

With regard to the procurement and delivery of equipment and commodities, the provisions in annex n shall be applied by the Parties.

ARTICLE VI Expenditure incurred by Sweden

1 — Costs for personnel, consultancy services, equipment and commodities made available by Sweden shall correspond to the actual expenditure incurred, by Sweden in respect of resources. The said costs shall subsequently be deducted by Sweden from the amounts made available each year for development purpose.

2 — As soon as possible after the end of each six months period covered by this Agreement, Sweden shall furnish to Portugal:

0 Reports on the expenditure incurred by Sweden during the preceding period; and