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May 19, 1987

WHEREAS, the Congress of the United States by Public Law 99-166 approved December 12, 1985, and Public Law 99-576 approved October 28, 1986 as embodied in Subchapter IV of Chapter 17 of Title 38, United States Code, has provided for the extension of the operations of the United States Veterans Administration in the Philippines and for further assistance by grants-in-aid to the Republic of the Philippines for replacement and upgrading of equipment and for rehabilitation of the physical plant of the Veterans Memorial Medical Center, and

WHEREAS, commencing October 1, 1981, the Republic of the Philippines assumed full responsibility for the hospital and medical care and treatment of all Commonwealth Army veterans and new Philippine Scout veterans, and

WHEREAS, the United States of America is desirous of assisting the Republic of the Philippines in maintaining high quality medical care and treatment at the Veterans Memorial Medical Center, and

WHEREAS, the Republic of the Philippines is desirous of taking advantage of the provisions thereof for the purpose of continuing the operations of the United States Veterans Administration in the Philippines and for the purpose of replacement and upgrading of equipment and rehabilitation of the physical plant of the Veterans Memorial Medical Center.

The United States of America and the Republic of the Philippines have decided to conclude a new Agreement for the above purpose, the regulations relating to which the United States of America will promulgate in the Federal Register and do hereby agree as follows:

TITLE I
  PURPOSE OF CONTRACT

ARTICLE I. Subject to mutual agreement, the necessary appropriation acts of the United States Congress, and such rules and regulations as, from time to time, may be prescribed by the Administrator of Veterans Affairs of the United States, to whom the President of the United States has delegated the authority conferred upon him by Sections 631-633) Title 38, United States Code, the Administrator of Veterans Affairs of the United States will enter into a contract with the Director of the Veterans Memorial Medical Center subject to the approval of the Minister of National Defense of the Republic of the Philippines, as follows:

(a) To provide reimbursement to the Republic of the Philippines by the United States of America for hospital care in the Republic of the Philippines of United States veterans determined by the Administrator of Veterans Affairs of the United States to be in need of such hospital care for service-connected disabilities, at a per diem rate to be jointly determined for each fiscal year by the two Governments to be fair and reasonable;

(b) To provide reimbursement as described in (a) above for hospital care at the Veterans Memorial Medical Center of United States veterans determined by the Administrator of Veterans Affairs of the United States to be in need of such hospital care for nonservice-connected disabilities if they are unable to defray the expenses of such care;

(c) To provide reimbursement for medical services in the Republic of the Philippines for United States veterans determined by the Administrator of Veterans Affairs of the United States to be in need of such medical services for service-connected disabilities which shall be provided either in the Veterans Memorial Medical Center or by contract, the rates to be jointly determined for each fiscal year by the two Governments to be and reasonable;

(d) To provide reimbursement for nursing home care in the Republic of the Philippines for any United States veteran who has been furnished hospital care and who has been determined by the Administrator of Veterans Affairs of the United States to be in need of such nursing home care at a per diem rate to be jointly determined for each fiscal year by the two Governments to be fair and reasonable but in no event to exceed 50 per centum of the per diem rate established pursuant to (a) above;

(e) To provide reimbursement for travel expenses of United States veterans incident to such hospitalization, medical services, or nursing home care which are authorized by the Administrator of Veterans Affairs of the United States;

(f) To provide that the contract shall remain in force until September 30, 1989, unless extended by the agreement of both parties;

(g) To provide that during the contract period specified in this article, subject to actual agreement of the officials designated to execute such actions, payments for hospital care and for medical services provided to United States Veterans may consist in whole or in part of available medicines, medical supplies, and equipment furnished by the Administrator of Veterans Affairs of the United States to the Veterans Memorial Medical Center at valuations therefor as determined by the Administrator of Veterans Affairs of the United States, provided the valuations so determined shall not be less than the cost of the items furnished, including transportation;

(h) To provide that during the period covered by such contract the Republic of the Philippines and the Veterans Memorial Medical Center will replace and upgrade, as needed, the equipment of such hospital and will rehabilitate the existing physical plant and facilities of such hospital as soon as practicable to place the hospital on a sound and effective operating basis;

(i) To provide for grants by the Administrator of Veterans Affairs of the United States, on such terms and conditions as he may prescribe, to the Veterans Memorial Medical Center to assist the Republic of the Philippines in the replacement and upgrading of equipment and in rehabilitating the physical plant and facilities of such hospital, which shall not exceed the amounts provided by the appropriation acts of the Congress of the United States for that purpose and in no event shall exceed the amount of $500,000 for each fiscal year during the period beginning October 1, 1986, and ending September 30, 1989.

TITLE II
  DELEGATION OF AUTHORITY

ARTICLE 2. The Minister of National Defense of the Philippine Government, under the general direct ion of the President of the Republic of the Philippines, shall have full authority to administer for the Government of the Republic of the Philippines all matters relating to the provision of medical care and treatment for United States veterans, for replacement and upgrading of equipment and for rehabilitating the physical plant of the Veterans Memorial Medical Center.

TITLE III
  USE OF FACILITIES OF THE VETERANS MEMORIAL MEDICAL CENTER

ARTICLE 3. As previously agreed between the two Governments, the ownership of the Veterans Memorial Medical Center and the equipment thereof has been vested in the Government of the Philippines and the use to which said hospital or any part or equipment thereof shall be devoted is for determination by mutual consent of the two Governments.

ARTICLE 4. Use by the Republic of the Philippines of the facilities of the Veterans Memorial Medical Center shall be discretionary with the Republic of the Philippines except that;

(a) First priority of admission and retention in the hospital shall be accorded Commonwealth Army veterans and New Philippine Scouts needing hospital care for service connected disabilities associated with and aggravating service-connected disabilities.

(b) Second priority shall be accorded United States veterans who require hospital care for service-connected disabilities or nonservice-connected disabilities associated with and aggravating service-connected disabilities.

(c) Third priority shall be accorded Commonwealth Army veterans, New Philippine Scouts who served under Section 14 of the Armed Forces Voluntary Act of 1945, who enlisted before July 4, 1946, and who were discharged or released from such service under conditions other than dishonorable, and United States veterans with "wartime" service, who need hospital care for nonservice-connected disabilities.

TITLE IV
  OTHER PROVISIONS

ARTICLE 5. It is agreed between the two Governments that the determination of legal eligibility and medical need for hospitalization and medical treatment of Commonwealth Army veterans and the New Philippine Scouts as well as their need for nursing home care, rests exclusively with the Ministry of National Defense; and

That the Republic of the Philippines will assume full financial responsibility for such hospitalization and medical treatment of Commonwealth Army veterans and New Philippine Scout veterans.

ARTICLE 6. The Minister of National Defense of the Republic of the Philippines will, with the concurrence of the Administrator of Veterans Affairs of the United States, cause such printed forms of applications for hospitalization, nursing home care, and outpatient treatment, forms of physical examination reports; forms for billing for services rendered and such other forms and notices as may be necessary and incident to the efficient execution of this program to be prepared, and such approved forms will be used whenever applicable to the general operations of such program.

ARTICLE 7. The Minister of National Defense of the Philippines shall furnish to the Administrator of Veterans Affairs of the United States, upon his request, or the request of any officer duly designated by him for such purpose, full and complete cost accounting information, copies of medical examination and treatment reports and any other information deemed by him to be necessary and incident to the proper application of the terms of this Agreement.

ARTICLE 8. The United States of America, through such qualified persons as the Administrator of Veterans Affairs of the United States may designate, shall have the right to inspect any hospital in which veterans are being hospitalized or any nursing home care facility in which veterans are being provided nursing home care under the terms of this Agreement, to inspect and audit its books and all accounts as are incident to the proper determination of cost of the reimbursement, on a per diem basis, for such hospitalization or nursing home care and to determine whether the hospital and nursing home care facilities, procedures, techniques, and standards, as well as the quality of subsistence furnished, are adequate and proportionate to the charges being made therefor.

ARTICLE 9. Appropriations for grants to the Veterans Memorial Medical Center to assist the Republic of the Philippines in the replacement and upgrading of equipment and in rehabilitating the physical plant and facilities of such hospital, if unobligated, will revert to the United States Treasury at the end of each fiscal year, unless otherwise authorized by applicable appropriation statute.

ARTICLE 10. It is agreed between the two Governments that if the conditions and terms of the Agreement are not being met, the Minister of National Defense of the Philippines and the Administrator of Veterans Affairs of the United States or it is designee shall enter into immediate consultation with a view to compliance with said terms and conditions. The initiation of such consultations by either Government shall not limit or qualify the duty and obligation of the Administrator of Veterans Affairs of the United States to withold or suspend payments when in his judgement such payments would not be in accordance with the terms of this Agreement.

ARTICLE 11. It is agreed between the two Governments that the program under this Agreement, including the contract referred to in Article I, shall be effective from the date specified in such contract.

ARTICLE 12. The Agreement entered into between the United States of America and the Republic of the Philippines on July 28, 1982 is deemed terminated on September 30, 1986 and the present Agreement shall be deemed to have come into effect on October 1, 1986 and shall remain in effect until terminated or until September 30, 1989 whichever is earlier. Such amendment or revocation may be accomplished by an exchange of notes between the two Governments and shall be effective immediately upon the exchange of notes.

ARTICLE 13. The Republic of the Philippines shall save harmless all officers and employees of the United States Veterans Administration from damage suits or other civil and criminal actions arising out of the performance of their official duties.

ARTICLE 14. The Government of the Philippines agrees the United States Veterans Administration will continue to discharge the responsibilities of the United States Government in the Philippines under this Agreement and the Government of the Philippines will consider the United States Veterans Administration and its personnel as part of the Diplomatic Mission of the United States of America for the purpose of enjoying privileges and immunities accorded to that Mission and its personnel of comparable rank.

ARTICLE 15. The authority of the United States to make grants and payments under this agreement is, for any fiscal year, subject to the appropriation of funds by the United States Congress.

IN WITNESS WHEREOF, the undersigned, duly authorized thereto, have signed this Agreement in duplicate, in the City of Manila, this19th day of May, 1987.