December 10, 2007

The Government of the United States of America and the Government of Japan have reached agreement regarding the payment of ground rent for the land occupied by the U.S. Embassy chancery in Tokyo since 1890. The agreement covers the period from January 1, 1998 to December 31, 2027 and reflects the unique land rights granted to the United States Government by the Government of Japan under a Deed of Perpetual Lease in 1896.

Under the terms of the recent rental adjustment agreement, the parties will adjust the annual ground rent for the chancery land as follows:

• The annual rent will be 7,000,000 Japanese yen for the period of January 1, 1998 to December 31, 2007, for a total of 70,000,000 Japanese yen for that ten-year period.
  
  
• The annual rent will increase to 10,000,000 Japanese yen for the period January 1, 2008 to December 31, 2012.
  
  
• The annual rent will increase to 15,000,000 Japanese yen for the period January 1, 2013 to December 31, 2027.
  
  

The amount of 70,000,000 Japanese yen for the ten-year period from January 1, 1998 to December 31, 2007 was paid in full on December 7, 2007.