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230 in that Appendix, I have the honour to propose that the terms and conditions governing these facilities should be those set forth in the Annex to this Note.

Accordingly, I have the honour to suggest that this Note, together with your Excellency's reply accepting the above-mentioned proposals, shall constitute an agreement between our two Governments on the terms of those proposals.

I avail, &c.,Ralph Skrine

ANNEX

1.—(a) The Government of the Republic of Egypt shall lease to the Shell Company of Egypt in its capacity as contractor to the Government of the United Kingdom, hereinafter referred to as "the contractor," from the date on which the oil pipeline system is handed over by the Government of the United Kingdom to the Government of the Republic of Egypt for the period of the Agreement between the two Governments signed on the 19th of October, 1954, 52,600 metric product tons tankage capacity in the oil installations at Agrud for the storage and turnover of the reserves of the Government of the United Kingdom. These reserves may consist of not more than 22,500 metric tons MT gasoline and 13,500 metric tons aviation spirit. Of the capacity so leased, 22,000 metric product tons capacity may be reserved for aviation spirit.

(b) The capacity so leased may be reduced at the discretion of the Government of the United Kingdom.

(c) The contractor shall pay to the Government of the Republic of Egypt for the lease of the above-mentioned tankage capacity a rent of one Piastre for the period of the Agreement.

2.—(a) The Aviation pipeline between Suez and Agrud known as the Suez/Agrud " A " line shall be used exclusively for the constitution, reconstitution and turnover of the reserves of the Government of the United Kingdom of aviation spirit. No charge shall be made by the Government of the Republic of Egypt for the use of this line.

(b) Nevertheless, in the case of the "W" line between Suez and Agrud known as the Suez/Agrud "W" line being out of operation, the Suez/Agrud "A" line may be used for the movement of MT gasoline and of kerosine. Similarly, should the Suez/Agrud "A line be out of operation, the Suez/Agrud "W" line may be used for the movement of aviation spirit. No. 3008