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October 11, 1961

Note: The Agreement entered into force, October 31, 1961.

Excellency:

I have the honor to refer to recent conversations between representatives of our two Governments concerning appropriate arrangements with respect to the men and women of the United States of America who volunteer to serve in the Peace Corps and who would live and work for periods of time in the Republic of the Philippines. In these conversations the Government of the Republic of the Philippines has indicated that it would welcome Peace Corps Volunteers and Volunteer Leaders.

I have the honor to propose the following understandings with respect to the Peace Corps :

1. The Government of the Republic of the Philippines will accord equitable treatment to Peace Corps Volunteers and Volunteer Leaders, both as to their persons and their property; afford them, particularly in case of need, full aid protection; and fully inform and cooperate with representatives of the Government of the United States of America with respect to all matters concerning them.

2. The Government of the Republic of the Philippines will accept a Peace Corps representative and his staff who will discharge functions for the Government of the United States of America with respect to Peace Corps programs. The size of the staff shall be agreed upon by the Government of the Republic of the Philippines and the Government of the United States of America

3. The Government of the Republic of the Philippines will exempt equipment, materials, and supplies used in connection with Peace Corps programs from taxes and from customs duties and charges.

4. The Government of the Republic of the Philippines will exempt Peace Corps Volunteers, Volunteer Leaders and the Peace Corps representatives and staff from immigration fees, from income tax as to all income derived from their Peace Corps work and from sources outside the Republic of the Philippines, from social security taxes and from all other taxes, charges and fees except (a) sales taxes or other charges or fees included in the prices of goods and services or (b) license fees. The representative and staff shall receive the same treatment with respect to the payment of customs, import, export and all other duties and fees on personal property, equipment and supplies imported into the Republic of the Philippines for their own use as is accorded personnel of comparable rank or grade of the Embassy of the United States of America.

5. Appropriate representatives of the Government of the United States of America and the Government of the Republic of the Philippines may make from time to time such arrangements with respect to Peace Corps Volunteer Leaders and Peace Corps programs in the Republic of the Philippines as appear necessary or desirable for the purpose of implementing this agreement.

I have the honor to propose that, if these understandings are acceptable to the Government of the Republic of the Philippines, this note and Your Excellency's reply note concurring therein shall constitute an agreement between our Governments which shall enter into force on the date of Your Excellency's reply note and which shall remain in force until ninety days after the date of written notification from either Government to the other of intention to terminate it.

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

(Sgd.) JOHN D. HICKERSON

His Excellency
FELIXBERTO M. SERRANO
Minister for Foreign Affairs
Manila

Manila, October 31, 1961

Excellency:

I have the honor to acknowledge the receipt of Your Excellency's Note No. 316 dated October 11, 1961, the text of which follows:

Excellency:

I have the honor to refer to recent conversations between representatives of our two Governments concerning appropriate arrangements with respect to the men and women of the United States of America who volunteer to serve in the Peace Corps and who would live and work for periods of time in the Republic of the Philippines. In these conversations the Government of the Republic of the Philippines has indicated that it would welcome Peace Corps Volunteers and Volunteer Leaders.

I have the honor to propose the following understandings with respect to the Peace Corps:

1. The Government of the Republic of the Philippines will accord equitable treatment to Peace Corps Volunteers and Volunteer Leaders, both as to their persons and their property; afford them, particularly in case of need, full aid and protection; and fully inform and cooperate with representatives of the Government of the United States of America with respect to all matters concerning them.

2. The Government of the Republic of the Philippines will accept a Peace Corps representative and his staff who will discharge functions for the Government of the United States of America with respect to Peace Corps programs. The size of the staff shall be agreed upon by the Government of the Republic of the Philippines and the Government of the United States of America.

3. The Government of the Republic of the Philippines will exempt equipment, materials, and supplies used in connection with Peace Corps programs from taxes aad from customs duties and charges.

4. The Government of the Republic of the Philippines will exempt Peace Corps Volunteers, Volunteer Leaders and the Peace Corps representatives and staff from immigration fees, from income tax as to all income derived from their Peace Corps work and from sources outside the Republic of the Philippines, irom social security taxes and from all other laxes, charges and fees except (a) sales taxes or other charges or fees included in the prices of goods and services or (b) license fees. The representative and staff shall receive the same treatment with respect to the payment of customs, import, export and all other duties and fees on personal property, equipment and supplies imported into the Republic of the Philippines for their own use as is accorded personnel of comparable rank or grade of the Embassy of the United States of America.

5. Appropriate representatives of the Government of the United States of America and the Government of the Republic of the Philippines may make from time to time such arrangements with respect to Peace Corps Volunteers and Volunteer Leaders and Peace Corps programs in the Republic of the Philippines as appear necessary or desirable for the purpose of implementing this agreement.

I have the honor to propose, that, if these understandings ate acceptable to the Government of the Republic of the Philippines, this note and Your Excellency's reply note concurring therein shall constitute an agreement between our two Governments which shall enter into force on the date of Your Excellency's reply note and which shall remain in force until ninety days after the date of written notification from either Government to the other of intention to terminate it.

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

The understanding stated in Your Excellency's Note are acceptable to the Philippine Government. In accordance with Your Excellency's proposal, therefore, it is accepted that this exchange of notes consisting of Your Excellency's Note No. 316 dated October 11, 1961 and this reply Note, hereby constitute an agreement between our two Governments, effective as of this date and to remain in force until ninety days after the date of written notification from either Government to the other of intention to terminate the said agreement.

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

(Sgd.) FELIXBERTO M. SERRANO
Secretary of Foreign Affairs

His Excellency
JOHN D. HICKERSON
Ambassador of the United States of America
Manila