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November 24, 1961

Note: The Agreement entered into force, November 30, 1961.

Reference: This Agreement is also published in III DFA TS No. 4, p. 24.

THE GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES

and

THE GOVERNMENT OF THE FEDERAL REPUBLIC OF GERMANY

Desiring to promote the economic and technical co-operation between their two countries and intensify the friendly relations existing between their peoples, Have agreed as follows:—

ARTICLE 1

(1) The Government of the Republic of the Philippines and the Government of the Federal Republic of Germany shall jointly establish a Pilot Plant for the processing of coconut at the University of San Carlos at Cebu City, Philippines.

(2) The participation of the Government of the Federal Republic of Germany in the establishment of the Pilot Plant shall be as set forth in the following provisions.

ARTICLE 2

(1) The Pilot Plant shall serve for the extraction of coconut oil and its chemical conversion into fatty alcohol sulphates.

The Pilot Plant shall provide opportunities for the training of technical, mechanical and chemical specialists.

(2) Any proceeds from production within the scope of this training should be used for the purposes of the Pilot Plant.

ARTICLE 3

(1) The Government of the Federal Republic of Germany shall provide at its expense the articles of equipment required for the Pilot Plant c.i.f. to the place of destination, machines, tools, appliances as well as teaching and visual aids.

(2) The articles of equipment supplied by the Government of the Federal Republic of Germany in accordance with Paragraph 1 above shall be handed over at the place of destination to the Government of the Republic of the Philippines and shall there by become the property of that Government.

ARTICLE 4

(1) The Government of the Federal Republic of Germany shall, at its expense, provide for the training of two experts from the Philippines for a period of approximately three months in the Federal Republic of Germany in order to give them the opportunity to study the practical and theoretical essentials of the Pilot Plant and to receive appropriate instruction.

(2) The travel expenses and cost of stay in respect of the two experts shall be met by the Government of the Federal Republic of Germany.

ARTICLE 5

(1) The Government of the Republic of the Philippines shall, for the Purposes of the Pilot Plant, provide at its own expense:

a) the land and buildings including appurtenances required for the establishment of the Pilot Plant;

b) the technical, operational and administrative equipment as well as the working, auxiliary and operational materials, in so far as such articles are not provided by the Government of the Federal Republic of Germany.

(2) The Government of the Republic of the Philippines shall bear:

a) the cost of installing and starting the Pilot Plant;

b) the running costs of maintenance and operation of the Pilot Plant.

ARTICLE 6

The Government of the Republic of the Philippines undertakes to ensure that the articles of equipment supplied by the Government of the Federal Republic of Germany will be exempt from import and export duties as well as other government taxes, imposts and fees of all kinds.

ARTICLE 7

This Agreement shall also apply to Land Berlin, provided that the Government of the Federal Republic of Germany has not made a contrary declaration to the Government of the Republic of the Philippines within three months from the date of signature of this Agreement.

ARTICLE 8

This Agreement shall enter into force on the day of its signature.

DONE at Manila, Philippines, in English and German, both texts being equally authentic, this 24th day of November 1961.