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AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES ON THE SETTLEMENT OF CLAIMS FOR PAY AND ALLOWANCES OF RECOGNIZED PHILIPPINE GUERRILLAS NOT PREVIOUSLY PAID IN FULL AND FOR ERRONEOUS DEDUCTIONS OF ADVANCED SALARY FROM THE BACKPAY OF ELIGIBLE PHILIPPINE VETERANS

Agreement signed at Manila 29 June 1967;

Entered into force 29 June 1967.

Whereas, the United States Panel of the Joint United States — Republic of the Philippines Veterans Commission has recommended settlement of claims for pay and allowances of recognized Philippine guerrillas not previously paid in full and for erroneous deductions of advanced salary from the backpay of eligible Philippine veterans;

Whereas, the President of liie United States and the President of the Republic of the Philippines have, agreed ihat their representatives would discuss the means of settling the aforesaid claims; and

Whereas, settlement of ihc aforesaid two claims is desirable in order to accomplish the objective of resolving the issues arising from military service by members of the Philippine armed forces and guerrillas during the Second World War;

1. Therefore, the United States agrees to pay the Republic of the Philippines the sums of;

a. $29,500,000 in full and final -settlement of claims for pay and allowances of recognized Philippine guerrillas not previously paid in full, and

b. $1,620,000 in full and final settlement of claims for erroneous deductions of advanced salary from the backpay of certain Philippine veterans.

2. The full amount of the sums set forth in paragraph 1 above shall be paid in United States dollars on or about the date of signature of this Agreement to the account of the Government of the Republic of the Philippines or a designated agency thereof in depository banks in the United States designated by the Government of the Republic of the Philippines. Through an exchange of letters between the Governor of the Central Bank of the Philippines and the Secretary of the Treasury of the United States dated April 17, 1967 and May 16, 1967 respectively, the Government of the Republic of the Philippines has entered into arrangements with the Government of rhe United States which will minimize any adverse impact which additional payments made to Philippine guerrillas and veterans might have on the United States balance of payments.

3. The Government of the Republic of the Philippines shall process, adjudicate and pay the claims described in paragraph 1 above, bearing all costs of administration, and agrees to hold the United State'; Government harmless from liability of said claims.

4. The Government of the Republic of the Philippines agrees that it shall pay only those recognized guerrillas who were not previously paid in full and whose names appear on the United States approved revised final roster of March 1948. Payments shall be made only for service performed prior to July 1, 1946, and for periods not in excess of that contained on said roster. The Government of the Republic of the Philippines will pay these claims to the appropriate individuals in a manner which accords with the method used by the United States in computing the sums made available to the Republic of the Philippines.

5. It is the understanding of both Governments that payments made under this Agreement have no effect on the eligibility requirements of veterans for benefit programs administered by the United States except as provided by United States laws.

In witness whereof, the undersigned, duly authorized thereto, have signed this Agreement, in duplicate, in the City of Manila, this 29th day of June, 1967.

For the Government of the United States of America:

	WILLIAM MCCORMICK BLAIR, JR.
	Ambasador of the United States of America

For the Government of the Republic of the Philippines:

	NARCISO RAMOS
	Secretary of Foreign Affairs of the Philippines
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