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October 18, 1956


EXCHANGE OF NOTES CONSTITUTING AN AGREEMENT BETWEEN THE PHILIPPINES AND THE UNITED STATES OF AMERICA RELATING TO DUTY-FREE ENTRY AND EXEMPTION FROM INTERNAL TAXATION OF RELIEF SUPPLIES AND EQUIPMENT

Note: The Agreement entered into force, October 18, 1956.

Reference: This Agreement is also published in 280 UNTS, p. 55.

I

THE AMERICAN EMBASSY TO THE PHILIPPINE DEPARTMENT OF FOREIGN AFFAIRS

No. 1071

The Embassy of the United States of America presents its compliments to the Department of Foreign Affairs of the Republic of the Philippines and under instruction from Washington has the honor to present the following matter:

For some years the United States has furthered the humanitarian activities of American voluntary relief and rehabilitation agencies by reimbursing ocean freight costs on relief shipments to certain countries. Eligible agencies are those registered with the Advisory Committee on Voluntary Foreign Aid, which Committee and its functions were transferred from State to Federal Operations Administration, July 1, 1953. The authority for this program was provided in Section 117 (c) of the Economic Cooperation Administration Act of 1948 and subsequently by Section 535 of the Mutual Security Act of 1951, as amended. In each instance before expending funds appropriated by the Congress for this purpose an agreement is entered into with the receiving country providing for duty-free entry of supplies and inland transportation to the point of ultimate distribution by the receiving government.

If the Government of the Philippines is agreeable, the United States Government would propose that the two countries enter into an agreement, through an exchange of notes, in the following terms:

"1. The Government of the Philippines shall accord duty-free entry into the Philippines, as well as exemption from internal taxation, of supplies of goods approved by the Government of the United States, donated to or purchased by United States voluntary, nonprofit relief and rehabilitation agencies qualified under United States Government Regulations, and consigned to such organizations, including branches of these agencies in the Philippines which have been or hereafter shall be approved by the Government of the Philippines.

"2. Such supplies may include goods of types qualified for ocean freight subsidy under applicable United Slates Government Regulations, such as basic necessities of food, clothing and medicines, and other relief and rehabilitation supplies and equipment in support of projects of health, sanitation, education, and recreation, agriculture and promotion of small self-help industries, but shall not include tobacco, cigars, cigarettes, alcoholic beverages, or items for the personal use of agencies' field representatives.

"3. Duty-free treatment on importation and exportation, as well as exemption from internal taxation, shall also be accorded to supplies and equipment imported by organizations approved by both governments for the purpose of carrying out operations under this agreement. Such supplies and equipment shall not include items for the personal use of agencies' field representatives.

"4. The cost of transporting such supplies and equipment (including port, handling, storage, and similar charges, as well as transportation) within the Philippines to the ultimate beneficiary will be borne by the Government of the Philippines.

"5. The supplies furnished by the voluntary agencies shall be considered supplementary to rations ro which individuals would otherwise have been entitled.

"6. Individual organizations carrrying out operations under rhis agreement may enter into additional arrangements with the Government of the Philippines and this agreement shall not be construed to derogate from any benefits secured by any such organizations in existing agreements with the Government of the Philippines.

"I have the honor to propose that, if these understandings meet with the approval of the Government of the Philippines, this note and your Excellency's note in reply constitute an agreement between our two governments." "

It will be noted that this model agreement covers all relief items normally shipped by these American relief agencies. Numbered Paragraph 2 of the agreement could be modified however, if the Government of the Philippines preferred to limit the agreement to one or more specific items.

An early expression from the Government of the Philippines with respect to the foregoing proposal will be appreciated.

American Embassy,

Manila April 29, 1954

II

THE PHILIPPINE DEPARTMENT OF FOREIGN AFFAIRS TO THE AMERICAN EMBASSY

REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FOREIGN AFFAIRS

No. 3001

The Department of Foreign Affairs presents its compliments to the Embassy of the United States of America and has the honor to refer to the Embassy's note No. 1071 dated April 29, 1954 which is quoted hereunder:

[See note I]

The Department is pleased to inform the Embassy that the Government of the Republic of the Philippines is agreeable to the terms of the proposed agreement. This note and the Embassy's note No. 1071 dated April 29, 1954, therefore, now constitute the agreement between the Governments of the Republic of the Philippines and the United States of America.

{Initialed) [illegible]

Manila, October 18, 1956



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