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September 28, 1988

Excellency:

I have the honor to refer to Your Excellency's Note dated 05 August 1988, the text of which is quoted
  hereunder:

"I have the honour to refer to the negotiations conducted between our two governments in Manila on 24 and 25 November   1987 (Summary Record, 3.2.2) and to propose on behalf of the Government of the Federal Republic of Germany that, in   pursuance of the Agreement of 7 September 1971 between our two Governments regarding Technical Co-operation, the   following Arrangement concerning the project "Management of Dipterocarpus Forests" be concluded."

1. The Government of the Federal Republic of Germany and the Government of the Republic of the Philippines shall   co-operate on the long-term management of Dipterocarpus forests with a view to ensuring the ecological and economic   functions of the Dipterocarpus forests.

2. The Government of the Federal Republic of Germany shall make the following contributions to the project: 

(1) It shall

(a) second

- one expert in forest planning to act as team leader for a total of up to 36 man/months;

- one expert in tropical silviculture, agroforestry and rattan cultivation for a total of up to 36 man/months;

- one expert in forest management and data processing for a total of up to 36 man/months;

- one expert in forest utilization for a total of up to 36 man/months;

- short-term experts and consultants to deal with special problems, particularly in the areas

- agroforestry

- forest planning

- scientific advisory functions

- analysis of target groups, formulation of problems relating to specific target groups, identification of measures
  oriented towards specific target groups

for a total of up to 18 man/months;

- post graduates to conduct project-related studies for a total of up to 36 man/months;

(b) supply equipment, in particular

- five vehicles, including spare parts,

- extraction equipment (cable crane),

- office equipment and furnishings,

- forestry equipment,

- computer hardware and software,

- aerial and satellite images

up to a total value of DM 1,200,000 (one million two hundred thousand Deutsche Mark);

(c) provide staff for the project secretariat, for the driver service and for special technical tasks for a total of up
  to 72 man/months at the project site and meet the cost of their employment.

(2) It shall meet the cost of

(a) accommodation of the seconded experts and their families, in so far as this cost is not met by the experts   themselves;

(b) official travel by the seconded experts within and outside the Republic of the Philippines;

(c) transport and insurance to the project site of the items referred to in sub-paragraph (1) (b) above, excluding the   charges and storage fees referred to in paragraph 3 (2) (b) below;

(d) operation and maintenance of the vehicles used by the seconded experts, administrative costs and, where shortages   occur, operating costs associated with project implementation measures, up to a total of DM 611,800 (six hundred and   eleven thousand eight hundred Deutsche Mark).

(3) It is prepared to make available up to DM 198,100 (one hundred and ninety-eight thousand one hundred Deutsche Mark)   for the training of Philippine experts, presumably in the fields of

- tropical silviculture,

- timber harvesting,

- forestry planning,

- agroforestry,

who shall be employed on the project upon their return and carry on the work of the seconded experts on their own.

The candidates for this training shall be selected in collaboration with the seconded head of the German team and the   co-operating agency specified in paragraph 6 (2) below.

3. The Government of the Republic of the Philippines shall make the following contributions to the project:

It shall

(1) (a) provide experts, particularly in

- forestry planning,

- tropical silviculture,

- forest management,

- timber harvesting;

(b) create the requisite legal and administrative conditions to maximize efficiency;

(c) establish or mediate contacts to the agricultural advisory centres and semi-governmental organizations in which   training is carried out, for the purpose of disseminating the advisory principles developed in the course of the  project;

(2) (a) provide at its own expense the land and buildings required for the project, in so far as such equipment and   furnishings are not supplied by the Government of the Federal Republic of Germany at German expense;

(b) exempt the material supplied for the project on behalf of the Government of the Federal Republic of Germany . from   licences, harbour dues, import and export duties and other public charges, as well as storage fees, and ensure that the   material is cleared by customs without delay. The aforementioned exemptions shall, at the request of the implementing   agency, also apply to material procured in the Republic of the Philippines;

(c) meet the operating and maintenance costs in respect of the project, with the exception of the costs specified in   paragraph 2 (2) (d) above;

  (d) ensure that the tasks of the seconded experts are taken over as soon as possible by Philippine experts. Where the latter are to receive basic or further training in the Republic of the Philippines, the Federal Republic of Germany or other countries pursuant to this Arrangement, it shall in good time nominate, in collaboration with the mission of the   Federal Republic of Germany in the Philippines or with experts designated by the mission, a sufficient number of   candidates for such training. It shall only nominate such candidates as have given an undertaking to work on the   project for at least five years after completing their training; it shall ensure that these Philippine experts receive appropriate remuneration; 

(e) recognize, in accordance with their respective standards, examinations passed by Philippine nationals having   received training pursuant to this Arrangement. It shall afford the persons concerned such opportunities with regard to   careers, appointments and advancement as are commensurate with their training;

(f) afford the seconded experts any assistance they may require in carrying out the tasks assigned to them and place at   their disposal all necessary records and documents.

4. The seconded experts and their Philippine counterparts shall have the following tasks:

- to draw up effective management plans,

- to develop appropriate timber harvesting procedures,

- to develop silviculture alternatives to current selective management,

- to develop alternative agricultural use programmes for degraded forest sites,

- to collect forest inventory data and make them available for specific planning purposes,

- to introduce long-term management methods for Dipterocarpus forests throughout the country

- to carry out training measures and public relations work.

5. The material supplied for the project on behalf of the Government of the Federal Republic of Germany shall become   the property of the Republic of the Philippines on arrival in the Philippines; the material shall be at the unrestricted   disposal of the sponsored project and the seconded experts for the fulfilment of their tasks.

6. (1) The Government of the Federal Republic of Germany shall charge the Deutsche Gesellschaft fur Technische Zusam-menarbeit (GTZ) GmbH, 6236 Eschborn, with the implementation of its contributions.

(2) The Government of the Republic of the Philippines shall charge the Department of Environment and Natural Resources   (DENR) with the implementation of the project.

(3) The agencies charged pursuant to sub-paragraphs 1 and 2 above may jointly lay down details of the implementation of   the project in a plan of operations or in some other appropriate form, adapting them as necessary in line with the   progress of the project.

7. In all other respects the provisions of the aforementioned Agreement of 7 September 1971, including the Berlin   clause (Article 9), shall apply to the present Arrangement.

If the Government of the Republic of the Philippines agrees to the proposals contained in paragraphs 1 to 7 above, this   Note and Your Excellency's Note in reply thereto expressing your Government's agreement shall constitute an Arrangement   between our two Governments, to enter into force on the date of your Note in reply.

Accept, Excellency, the assurance of my highest consideration."

I have the honor to inform Your Excellency that ray Government agrees to the proposal contained in paragraphs 1 to 7   quoted above, and that Your Excellency's Note and this Note shall constitute an Arrangement between our two Governments,   to take effect on the date of this reply.

Accept, Excellency, the renewed assurances of my highest consideration.

(Sgd.) JOSE D. INGLES
Acting Secretary of Foreign Affairs

His Excellency Dr. PETER SCHOLZ
Ambassador Extraordinary and Plenipotentiary
Embassy of the Federal Republic of Germany
  Citibank Center, Paseo de Roxas
Makati, Metro Manila