In Hungarian

The Republic of Hungary and the Government of the United States (hereinafter Parties), wishing

- to deepen their co-operation in fighting international organized crime,
- to improve the professional skills of those fighting organized crime,
- to provide the technical instruments required by the fight against organized crime,

have agreed the following:

Definitions

Article 1

For the purposes of the present Agreement
a) the Hungarian Party shall be represented by the Ministry of the Interior of the Republic of Hungary,
b) the American Party shall be represented by the Budapest Embassy of the United States of America.

Areas of Co-operation

Article 2

(1) The American Party undertakes to make 215,000.00 U.S. dollars available in foreign assistance to the Hungarian Party for the purpose of combating organized crime as follows:

(2) The further training intended to reduce corruption shall take the form of a two-week training course. The course will be held by representatives of the American Party's Justice Department, State Department and the Federal Bureau of Investigation in Quantico, Virginia, for 24 inspectors of the Hungarian police force. The participants shall study the work of the law enforcement bodies of New York and other American cities.

Using the Support

Article 3

(1) The American Party shall disburse the financial support undertaken under Article 2 on the basis of drawdown documents prepared by the Budapest Embassy of the United States of America.

(2) The financial support may be drawn within 6 months of the end of the financial year in which the Parties completed the Agreement. If the facility is not drawn, the American Party may withdraw their undertaking.

(3) Extension of the drawdown period may be requested from the Office of International Drug and Criminal Affairs of the State Department of the American Party.

(4) The financial support provided by the American party may only be used for the purposes specified in the Agreement. In case of use for any other purpose the Hungarian Party shall be liable to reimburse any sums thus used to the American Party.

(5) All assets to be purchased using the support shall be purchased in or supplied from the United States of America unless the American Party agrees otherwise.

Controls

Article 4

(1) Both parties shall be entitled to
a) monitor the proper use of the sums provided under the Agreement,
b) review or verify all documents or invoices issued for sums for the purchase of technical equipment under the Agreement.

(2) The Parties agree that they shall monitor the implementation of the objectives defined within the program and shall perform controls at regular intervals. The Parties shall make the data and information required for control and assessment available to each other.

(3) Upon completion of the program the Parties shall prepare distinct reports about the implementation of the program and the objectives realized.

Ownership Rights

Article 5

(1) Any property furnished to the Hungarian party through financing by the American party shall be devoted to the project, and thereafter shall be used to further the project's objectives. The Hungarian party shall offer to the American party, or to reimburse the American party for, any property which it obtains through financing by the American party which is not used in accordance with this provision. Funds derived from the sale of any property furnished by the American party to the project shall be used in the furtherance of co-operation against international crime.

(2) All equipment, supplies, and material will be accounted for the U.S. Embassy and the end-user in no less rigorous manner as would be used if the equipment, supplies and material were acquired by the host government with the host government funds.

Privileges, Exemptions, Benefits

Article 6

(1) The services, goods, supplies and equipment to be purchased using the financial support provided by the American Party shall be free of any fees, duties, import tax, sales tax (ÁFA), and any other deposit liabilities or restrictions due to foreign exchange controls.

(2) The Hungarian Party shall provide the best official exchange rate for the execution of the Agreement in all instances of the financial support provided by the American Party being converted to local currency.

(3) The Hungarian Party agrees that they shall receive the persons appointed by the American Party to discharge liabilities under the Agreement. Those persons (and their family members) shall have the same legal status as that specified for administrative and technical personnel in the Vienna Convention on Diplomatic Relations.

(4) The persons mentioned in paragraph (3) shall be exempt from visa fees and the fee payable for the residence permit and the liability to request visas and residence permits in person as well as all fees, customs clearance charges, duty type payment liabilities, import tax, ÁFA, personal income tax and any similar taxes and liabilities.

(5) The persons mentioned in paragraphs (3)-(4) shall be exempt from the liability of paying social insurance contributions or obtaining work permits.

(6) The American Party shall notify the data of the persons mentioned in paragraphs (3)-(5) to the Hungarian Party through the Budapest Embassy of the American Party in good time in advance of their arrival in Hungary.

Rules of Execution

Article 7

Execution of the Agreement shall be determined by the authorized representatives of the Parties in a separate Agreement, in which, among other things, they shall regulate:
a) the competent bodies and the method of notification and proceeding,
b) the required records, the rules of drawing, transfers and settlement.

Effect, Amendment, Termination

Article 8

(1) The Agreement shall come into effect with the signatures of the authorized representatives of the two Governments.

(2) The Agreement shall remain in effect until the assistance provided by the American Party is expended.

(3) The Agreement may be terminated by either Party through diplomatic channels, in writing, in which case the Agreement shall lose effect on the 90th day from the reception of such notice.

(4) The Agreement cancels the liabilities of both Parties with the exception of payment liabilities they assumed towards third parties prior to the cancellation. The provisions governing ownership rights of assets shall remain in effect after termination of the Agreement.

(5) Either Party may initiate amendment of the Agreement through diplomatic channels, in writing.

Completed in Budapest, on 14 September 1998, in two originals, in Hungarian and in English. In the event of any question of interpretation, the English text shall take precedence.

Signatures