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The agreement between Committee on defense industry under the Cabinet of Ministers of the Republic of Kazakhstan and the Ministry of Defence of the Republic of Kazakhstan, the Industry ministry and trade of the Kyrgyz Republic and the Ministry of Defence of the Kyrgyz Republic about economic and sci-tech cooperation of the companies of defense industries

of March 17, 1995

Industry ministry and trade of the Kyrgyz Republic and the Ministry of Defence of the Kyrgyz Republic on the one hand, Committee on defense industry under the Cabinet of Ministers of the Republic of Kazakhstan and the Ministry of Defence of the Republic of Kazakhstan on the other hand, hereinafter referred to as with the Parties, based on provisions of the Contract on creation of economic union between state members of the Commonwealth and the Agreement between the Government of the Kyrgyz Republic and the Government of the Republic of Kazakhstan about military and technical cooperation of July 8, 1994, considering the developed production and commercial ties between the companies and the organizations of defense industries of the Parties, recognizing crucial role of direct production interaction, business entities of the Parties in the conditions of the market relations, agreed about the following:

Article 1

The parties will promote implementation of economic bonds between the companies, associations and the organizations on the basis of mutual advantage and non-admission of the actions causing economic mutual damage.

Article 2

The parties shall perform accomplishment of research and development works on the basis of both states of joint target programs coordinated with the Ministries of Defence, creation and production of arms, military equipment and civil products under contracts between business entities of the Parties.

Article 3

The parties promote mutual contractual deliveries under direct contracts between the companies of the Kyrgyz Republic and the Republic of Kazakhstan of the materials, components and other material resources necessary for production of arms and military equipment according to annually approved lists containing lists of the companies suppliers; the nomenclature and amounts of mutually delivered goods according to appendix 1 (delivery from the Republic of Kazakhstan) and 2 (deliveries from the Kyrgyz Republic).

At the same time appendices 1 and 2 are indicative lists within which the Parties can acquire special property and appliances, proceeding from amounts of assignments, allocated for these purposes, and the nomenclature can be adjusted as agreed by the parties routinely. The special property and appliances delivered according to the list is not subject to re-export.

Export (import) of special property, materials and components for production of the arms and military equipment delivered according to this agreement on the territory of the Kyrgyz Republic and the Republic of Kazakhstan will be performed on duty-free and license-free basis, and also is not subject to quoting.

Procedure of payments for mutual deliveries of special property and appliances, their transportation, maintenance by military guard and rendering military services it will be determined in agreements which will be signed among themselves by authorized bodies and business entities of the Parties (legal entities).

The special property and appliances, and also military services are delivered and bought according to the procedure and at the prices approved between the Parties or the legal entities authorized by them, but not high prices for own (interstate) needs of the Parties.

Article 5

The parties consider inadmissible presentation to suppliers unilaterally in case of the conclusion and execution of delivery contracts of products of additional requirements about counter delivery of the goods which are not connected with its production, rendering services and payment in currency, except for deliveries of products in export make.

Article 6

The parties will provide through the relevant organizations sending to the Republic of Kazakhstan and the Kyrgyz Republic of the specialists in quantity and for terms as agreed by the parties for work and rendering military services, including for operation training in fighting application and army repair of the delivered property, and also for technical assistance in case of development of production (repair) of special property.

Article 7

The parties not transfer without mutual consent the obtained documentation and information to the third party, and also foreign physical persons and legal entities irrespective of the territory of their stay, except as specified provisions of information provided by the international obligations of the Parties without preliminary written permission of other Party.

Article 8

The parties shall pursue coordinated policy in the field of standardization, metrology and certification, to keep the developed procedure for providing the companies with normative and technical, design and technological documentation.

Regarding arms, military equipment and components to them, the companies which are under authority of the Parties will be guided by the existing specifications and technical documentation on the mode of standardization, unification and rules of testing, product acceptance and conducting damage work.

Guarantees on quality of arms, military equipment and property of the Parties made at the companies, are established by contractual commitments.

Article 9

The parties agreed that removal from production of the components, materials and raw materials going for production, repair and maintenance of arms and military equipment is carried out as agreed by the parties.

Article 10

The parties determine lists of the arms, military equipment, ammunition, materials and component parts necessary for development of mobilization plans with preserving traditional ties by cooperation.

Article 11

The parties on important basis promote development and preserving mobilization capacities for production of products of arms, military equipment.

Questions of financing for content of mobilization capacities are determined by relevant organs on bilateral basis.

Article 12

The parties shall render every possible assistance to the companies in their export policy on the basis of preserving and further development of sci-tech cooperation, interstate cooperation and mutually advantageous settlement system for products realized to the third countries.

Article 13

The parties will promote formation of multinational corporations, associations and joint-stock companies of different patterns of ownership, to support intentions of the companies and associations on creation of business entities whose activities will be directed to stabilization and development of production.

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