Page 1 September 14, 2001 Mr. Jin Liqun Vice Minister of Finance Ministry of Finance Beijing, People’s Republic of China Re: Japan Social Development Fund Grant for Empowering the Poor Women in the Western Region Grant Number TF026781 Dear Sir: I am writing on behalf of the International Bank for Reconstruction and Development (the Bank) to indicate the Bank’s agreement, as administrator of grant funds provided by Japan under the Japan Social Development Fund, to make a grant in an amount not exceeding nine hundred fifty thousand United States dollars (US$950,000) (the Grant) to All China Women’s Federation (the Recipient) for the benefit of the People’s Republic of China. The Grant is made in response to the Recipient's request for financial assistance with the project described in paragraph 1 of the Annex (the Project) to the Letter Agreement between the Bank and the Recipient (the Letter Agreement), of even date herewith, and on the terms and conditions set forth in the said Annex. The People’s Republic of China, hereby confirms its support for, and its commitment to, the objectives of the Project and, to this end, hereby undertakes to take all action necessary or appropriate to enable the Recipient to carry out its obligations set forth in the Letter Agreement, including, without limitation, the provision of funds, facilities, services and other resources required for that purpose, and all necessary measures required to enable the Bank to visit the territory of the People’s Republic of China for purposes related to the Grant. Please confirm your agreement with the foregoing, on behalf of the People’s Republic of China, by signing, dating, and returning this Letter Agreement to us. Upon receipt by the Bank of the copy of this Letter Agreement countersigned by you, this Letter Agreement will become effective as of the date of the countersignature. Very truly yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By /s/ Austin Hu for Yukon Huang Country Director, China East Asia and Pacific Region AGREED: PEOPLE’S REPUBLIC OF CHINA By /s/ Ju Kuilin Deputy Director General Date: September 28, 2001 Page 2