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Pursuant to Articles 8 and 9 of the TRADE AGREEMENT between the Governments of the Republic of the Philippines and the Republic of Indonesia, signed in Djakarta on May 27, 1963; paragraph 6 of the PROTOCOL on the discussion of the development and the promotion of trade between the two countries, signed in Djakarta as an integral part of the TRADE AGREEMENT; provisions VI B 1 through VI B 5 of the MANILA MEMORANDUM on the DJAKARTA AGREEMENTS, signed in Manila on September 25, 1963; and provision III 6 of the AGREED MINUTES of the Philippine-Indonesian Ministerial Meeting on Economic and Trade Matters held in Manila from January 7 to 11, 1964,

The Joint Indonesian-Philippine Commission on Sea Communications, to be referred to hereinafter as the Joint Commission, is hereby established in accordance with the following articles:

ARTICLE I

The Joint Commission shall convene alternately in Djakarta and Manila, such conferences to be scheduled from time to time as may be deemed necessary by the Joint Commission.

ARTICLE II

The Joint Commission shall consist of not more than twelve (12) members, each country to have a maximum representation of six (6) members.

ARTICLE III

The Joint Commission shall be headed by two (2) Co-Chairmen, each being the Chairman of the panel representing his own government.

ARTICLE IV

The Joint Commission shall consider the establishment and maintenance of a Secretariat to undertake all administrative matters relative to the work of the Commission.

ARTICLE V

The following shall be the objectives of the Joint Commission:

1. To enhance the domestic and foreign trades of the Contracting Parties by establishing and promoting harmonious and efficient cooperation in the field of sea communications.

2. To promote the establishment and operation of a Philippine-Indonesian Shipping Conference.

3. If necessary, to formulate and recommend implementation of such rules and regulations between the Contracting Parties as are not generally covered in international shipping.

4. To establish, maintain and improve mutual assistance arrangements and procedures regarding ship design and construction, maintenance and repair of vessels, and logistical requirements of sea communications between the Contracting Parties.

5. To resolve, or assist in the settlement of, all questions and problems relative to the cooperation on sea communications between the Contracting Parties.

6. To conduct researches and studies on the shipping industry of each country individually or of both countries jointly.

ARTICLE VI

The Joint Commission shall have the power to formulate and draft working papers, proposals, rules and regulations, and recommend implementation of the same as may be deemed necessary, to accomplish the objectives enumerated in Article V.

ARTICLE VII

The provisions set forth in this TERMS OF REFERENCE shall be effective upon signature by the authorized representatives of the two Contracting Parties, subject to existing laws and regulations in force in either country, and shall remain in effect for a period of three years and thereafter for additional three-year period unless otherwise terminated by either Contracting Party upon at least six-months' notice in writing to the other; provided, however, that such notice of termination shall not be made until after the expiration of the first three-year period of effectivity of this TERMS OF REFERENCE.

IN WITNESS WHEREOF, the undersigned representatives, duly authorized by their respective Governments, have signed the present TERMS OF REFERENCE.

DONE and signed in two copies, each in the English language, both being equally authentic, in the City of Djakarta on the 19th day of March, 1964.