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August 22, 2001

PREAMBLE

The GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES and The GOVERNMENT OF HIS MAJESTY THE SULTAN AND YANG DI-PERTUAN OF ( BRUNEI DARUSSALAM hereinafter referred to jointly as "PARTIES" and singly as "PARTY".

RECOGNISING the existing friendly relations between their governments, countries and peoples;

DESIRING to further develop these friendly relations;

CONSIDERING the wishes of THE PARTIES to promote defense cooperation;

REALISING that for this cooperation to be carried out in an effective, orderly, I directed and continuous manner in furtherance of their mutual interests and j respect for the sovereignty of both nations, an Understanding is required;

hereby have reached the following Understanding.

ARTICLE 1
DEFINITIONS

For the purpose of this Understanding,

1.1 "Exercise" means military exercise conducted jointly by the armed forces of the PARTIES.

1.2 "Training" means the attachment and or attendance of defense personnel in and at an institution or organization for the purpose of learning, gaining and sharing of experience conducted by the PARTIES.

1.3 "Understanding" means this Memorandum of Understanding on Defense Cooperation Between THE GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES and THE GOVERNMENT OF HIS MAJESTY THE SULTAN AND YANG DI-PERTUAN OF BRUNEI DARUSSALAM.

1.4 "Defense personnel" means the military and civilian personnel of the Department of National Defense of the REPUBLIC OF THE PHILIPPINES and the military and civilian personnel of the Ministry of Defense of BRUNEI DARUSSALAM.

ARTICLE 2
MANAGEMENT OF COOPERATION

2.1 In order to supervise, manage and implement the Understanding reached between the PARTIES, the PARTIES agree to establish a Joint Working Committee.

2.2 This Committee shall meet alternately between the REPUBLIC OF THE PHILIPPINES and BRUNEI DARUSSALAM and shall be Co-chaired by a Senior defense official of the Department of National Defense of the REPUBLIC OF THE PHILIPPINES and a Senior defense official of the Ministry of Defense of BRUNEI DARUSSALAM.

2.3 The composition of this Committee shall be determined and agreed upon by both PARTIES prior to any meeting of the Committee and may include experts in limited numbers from other Ministries, Departments or Agencies as determined by each PARTY.

2.4 This Committee shall meet at least once a year, alternately in the REPUBLIC OF THE PHILIPPINES and BRUNEI DARUSSALAM. Either PARTY may give notice to the other PARTY requiring the holding of a meeting. Upon the receipt of such notice, the two PARTIES shall consult as to the date and other matters related to the meeting.

2.5 This Committee may set up sub-working committees as and when it deems necessary for the further and better management of this Understanding. These sub-working committees shall report to the Joint Working Committee.

2.6Any sub-working committee set up by the Joint Working Committee shall be co-chaired by appropriate officers of both PARTIES.

2.7Only matters pertaining to this Understanding shall be discussed in the meetings of the Joint Working Committee and sub-working committees.

2.8 This Committee shall at the conclusion of each meeting submit a joint report containing only the recommendations to the Department of National Defense of THE REPUBLIC OF THE PHILIPPINES and the Ministry of Defense of BRUNEI DARUSSALAM and no decisions binding on either or both PARTIES shall be made except with the express agreement of both the Department of National Defense of the REPUBLIC OF THE PHILIPPINES and the Ministry of Defense of BRUNEI DARUSSALAM.

2.9 The terms of reference for this Committee shall be drafted at its first meeting and submitted for approval of the Secretary of Defense and Minister of Defense of each PARTY respectively.

ARTICLE 3
SCOPE OF UNDERSTANDING

The PARTIES undertake to actively promote defense cooperation in accordance with international law and their respective national laws and regulations in the following matters:

3.1 Military cooperation as set out in Article 4.

ARTICLE 4
MILITARY COOPERATION

The PARTIES agree that their military cooperation shall be on the following subjects:

4.1 MILITARY TRAINING

4.1.1 Military training of defense personnel of one PARTY by the other shall whenever possible and appropriate be based on reciprocity.

4.2 MILITARY EXERCISES

4.2.1 The PARTIES shall insofar as it is feasible, practical and mutually beneficial, conduct military exercise between their two Armed Forces. The type, mode, frequency and conduct of such military exercise shall be discussed by the Joint Working Committee.

4.3 EXCHANGE OF PERSONNEL

4.3.1 There shall be exchange of defense personnel between the PARTIES insofar as it is feasible, practical and mutually beneficial. The type, mode, conduct and other circumstances of such exchange shall be discussed by the Joint Working Committee.

4.4 EXCHANGE OF INFORMATION

4.4.1. Information on the following subjects may be exchanged to such extent as the PARTY in possession of the information may determine:

4.4.1.1 Security and defense issues

4.4.1.2 Training-related matters

4.4.1.3 Technical information on defense products

4.4.1.4 Research and development on defense related products

4.4.2 The mode of such exchange shall be determined by the Joint Working Committee.

4.5 EXCHANGE OF VISIT

The PARTIES shall, insofar as it is mutually beneficial allow for the exchange of visits between their respective defense and armed forces personnel and such other visits that may further enhance biiatera! understanding and cooperation.

ARTICLE 5
GENERAL PROVISIONS

5.1. CONFIDENTIALITY

5.1.1 Both PARTIES shall observe the levels of security classifications of this Understanding in accordance with the respective national laws and procedures. To the best interest of BOTH PARTIES the following security classification as defined shall be adopted:

5.1.1.1. TOP SECRET - any information and material, the unauthorized disclosure of which would cause exceptionally grave damage to either or both parties politically, economically or militarily.

5.1.1.2. SECRET - any information and material, the unauthorized disclosure of which would endanger national security, cause serious injury to the interest or prestige or any activity of either or both parties; or would be of great damage to third party.

5.1.1.3. CONFIDENTIAL - information and material, the unauthorized disclosure of which would be prejudicial to the interest or prestige or any activity of either or both parties; or would cause ¦ administrative embarrassment, or unwarranted injury to, and / or would be of advantage to a third party.

5.1.1.4. RESTRICTED - information and material which requires special protection other than those determined to be Confidential, Secret, and Top Secret matter.

5.1.2 Both PARTIES shall keep confidential any demands or information acquired from either PARTY pursuant to this Understanding and any documents or information acquired from either PARTY shall not be disclosed to a third party without written consent from the other PARTY.

5.1.3 Both PARTIES shall protect any classified information to which it may be given access arising from this Understanding.

5.1.4 The provisions regarding protective security shall continue to apply even after termination of, or withdrawal from this Understanding.

5.1.5 The protective security agreement (s) made necessary by classified information exchanged between the PARTIES will be separately concluded.

5.2 SPECIFIC COOPERATION AGREEMENT

5.2.1 For the further and better implementation of this Understanding, both PARTIES agree that as and when required by either PARTY, separate detailed agreements shall e entered into covering such specific areas of cooperation.

5.3 SETTLEMENT OF DISPUTES

5.3.1 Any dispute arising out of the interpretation or implementation of this Understanding shall be settled amicably by consultations or negotiations between the PARTIES.

5.4 CONCLUSION

5.4.1 This Memorandum of Understanding shall enter into force on the date of the later written notification by the Contracting Parties, through diplomatic channels, indicating that the domestic requirements for its entry into force have been complied with.

5 4.2 This Understanding may be terminated;

(a) at any time by either PARTY giving six months written notice to the other; and

(b) at any time by mutual agreement.

5.4.3 The PARTIES may by mutual agreement vary, modify or amend this Understanding.

5.4.4 This Understanding is done in 4 original copies, two each in the Malay and English languages. In case of dispute the English language copy shall prevail.

In witness hereof the Undersigned being duly authorized by their respective governments have signed this Understanding.

Done at Bandar Seri Begawan on this 22nd day of August 2001.

Entry into Force: March 12, 2002