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January 30, 1989

The Government of the Republic of the Philippines and Government of the Federated States of Micronesia;

Desiring to consolidate the ties of friendship and understanding between their two peoples and to develop economic and technical cooperation between their two countries in accordance with their development needs and objectives on equitable and mutually beneficial bases;

ARTICLE I

The Government of the Republic of the Philippines and the Government of the Federated States of Micronesia shall promote and expand economic and technical cooperation between their countries on the basis of partnership, shared responsibility and mutual benefit in accordance with the laws, rules and regulations in force in their respective countries.

ARTICLE II

Under the terms of this Agreement, economic and technical cooperation would be pursued to encourage and expand the following:

1. sound development of trade;

2. cooperation in projects in agriculture and other sectors of industry;

3. investment promotion and facilitation; and

4. promotion, encouragement and protection of labor and employment.

ARTICLE III

Within the framework of this Agreement, the forms of cooperation shall include the following:

1. services of advisers, consultants and technicians;

2. training opportunities (both academic and technical) which are needed by either country for its development efforts;

3. implementation of development projects of interest to both Governments;

4. exchange of information regarding invitation to public or government tenders for supplies and services in identified areas or products of interests;

5. exchange of information/undertaking of joint studies and research; and

6. other forms as may be deemed desirable and are agreed to by both Governments.

ARTICLE IV

Recognizing the mutual benefit accruing from investments, the two Governments agree to facilitate the flow of investments between them in accordance with their respective social and economic development plans and investment laws and regulations of the host country.

ARTICLE V

To implement the economic and technical cooperation provided for in Article II, the two Governments shall negotiate and conclude specific project arrangements in accordance with the Provisions of this Agreement.

The specific project arrangements shall contain, among others, detailed descriptions of activities/projects to be jointly undertaken, the manner in which the activities shall be carried out, the contributions of the cooperating agencies, the allocation of costs, and the rights, privileges and obligations of the project personnel.

ARTICLE VI

Advisers, consultants and technicians referred to in Article II of this Agreement, provided they are not nationals of the host country, shall be entitled to the rights and privileges that are no less favorable than those granted to advisers, consultants and technicians of other countries under similar agreements.

ARTICLE VII

Payment for all transactions resulting from the present Agreement shall be in freely convertible currency and in accordance with the foreign exchange regulation of each country.

ARTICLE VIII

Each Government shall facilitate entry into and exit from its territory of personnel and equipment of the other party working on or used in joint projects and programs and extend the necessary assistance to accomplish their mission in accordance with the laws, rules and regulations in force in their respective countries.

ARTICLE IX

The provisions of the present Agreement shall not limit the right of either Government to adopt or execute measures for reasons of public health, morals, order or security.

ARTICLE X

Representatives of the two Governments shall meet at the request of either of them, to discuss matters of mutual interest concerning the implementation of this Agreement, to consider necessary measures aimed at the expansion of economic, technical and scientific cooperation, to work out the proper forms of such cooperation and to propose appropriate solutions to any difficulty encountered in the implementation of the Agreement.

Such representatives shall keep under review the development of economic and technical relations between their two countries, both in the bilateral and multilateral contexts. They shall make the recommendations to their respective Governments on the means by which the objectives of this Agreement might be furthered and a fuller measure of economic and technical cooperation might be attained.

ARTICLE XI

The Government of the Republic of the Philippines has designated the Department of Foreign Affairs, and the Government of the Federated States of Micronesia has designated the Department of External Affairs as their executive departments for the purpose of implementing this Agreement. The executive departments of the two Governments shall communicate through diplomatic channels.

ARTICLE XII

Both Governments shall strive to settle any problem, dispute or difference connected with this Agreement through mutual negotiation.

ARTICLE XIII

This Agreement shall enter into force on the date of the exchange of Notes confirming its ratification/approval by the two Governments.  It shall remain in force for a period of five (5) years and shall continue in force thereafter unless sooner terminated by either Government by three (3) months prior notice in writing.

At any time the Agreement is in force, either Government may propose in writing amendments thereto and to which the other Government will reply within 120 days upon receipt of such notice. The terms of the Agreement may be modified by mutual consent of the two Governments.

Projects which, at the expiration of this Agreement, have already been commenced but have not been fully implemented, shall be carried out to their completion in accordance with the provisions of this Agreement, unless there is mutual agreement to terminate.

Done and signed in Manila this 30^th day of January in the year nineteen hundred and eighty nine in two original texts in English language, one for each Government, both texts being equally authentic.

                     

FOR THE GOVERNMENT OF THE	FOR THE GOVERNMENT OF THE
REPUBLIC OF THE PHILIPPINES	FEDERATED STATES OF MICRONESIA
(Sgd.)	(Sgd.)