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October 18, 1956

Noie: The Protocol entered into force, October 18, 1956.

Reference: This Agreement is also published in III DFA TS No. 1, p. 54.

Moved by the desire to promote and enlarge commerce and trade between the two contracting parties, the Government of the Republic of the Philippines and the Government of the Republic of China set forth the following:

1. a) Both contracting parties agree on the desirability of taking appropriate measures to encourage more direct trade between them. b) To this end the work of commercial representatives of each country should be facilitated in the territory of the other, subject to the laws and regulations of that country.

2. a) Both contracting parties agree on the desirability of following, in the trade between them, the principle of non-discrimination in that, with regard to import procedure and regulations, the same treatment shall be given to those products which are included in any list agreed upon, as that given to similar products when imported under similar terms and conditions from third parties by either. '

b) Furthermore, it is deemed desirable, with regard to shipping in international trade, for both countries to accord each other all customary facilities and to refrain from any measure which could have a discriminatory effect vis-a-vis third parties.

c) The principle of non-discrimination shall not apply to treatment, benefits or advantages that are now or may hereafter be granted by the Republic of the Philippines to the United States of America or to its citi2ens, corporations or associations.

3. a) The lists attached to this Protocol were exchanged by both contracting parties. Annex A, the list of Philippine exports to the Republic of China, and Annex B, the list of Chinese exports to the Republic of the Philippines, as well as the Memorandum attached hereto, are considered as part and parcel of this Protocol.

b) These lists contain those goods which, in the light of the best information available at the present time, may be expected to flow between both countries, but do not constitute a commitment to import the goods enumerated provided the agreed volume of trade is maintained. The total amount of two million U.S. dollars stated in each list is a preliminary estimate of the trade volume each way per year. "

4. This Protocol shall come into effect on the date of signing by both parties.

IN WITNESS WHEREOF, the undersigned, being duly authorized by their respective Governments, have signed the present Protocol.

Done at Manila in duplicate in English on the eighteenth day of October, 1956.

ANNEX A

LIST OF PHILIPPINE EXPORTS TO THE REPUBLIC OF CHINA (AMOUNTS ARE ON A C.I.F. TAIWAN BASIS)

1. Iron Ore
2. Manganese
3. Timber, logs and sleepers
4. Manila ropes
5. Shell manufactures
6. Kapok or its seeds
7. Ramie fibers
8. Copra and Coconut oil
9. Abaca or Manila hemp
10. Dried seaweed
11. Leaf tobacco
12. Pyrite ore
13. Gum and resins
14. Miscellaneous commodities and invisibles (including freight and other services)

ANNEX B

List of Chinese Exports to the Republic of the Philippines (Amounts are on a ci.f. Philippine Basis) .

1. Rice
2. Tea
3. Camphor
4. Coke
5. Steel sheets, black
6. Aluminum ingots, sheets and products
7. Caustic soda
8. Hydrochloric acid
9. Bleaching powder
10. DDT
11. Paper and pulp
12. Fruits
13. Citronella oil
14. Electric fans
15. Vacuum flasks
16. Machinery equipment and tools
17. Industrial salt
18. Asphalt
19. Garlic
20. Menthol
21. Firebricks
22. Onions
23. Textiles
24. Miscellaneous commodities and invisibles (including freight and other services)

MEMORANDUM

In the conversation between the Secretary of Foreign Affairs and the Chinese Ambassador at the Department of Foreign Affairs on October 18, 1956, concerning the Protocol of Trade Relations between the Republic of the Philippines and the Republic of China, the Ambassador stated that the principle of non-discrimination in the Protocol is construed to apply to articles of trade between the two countries; that the principle does not apply to non-trade articles, such as articles included in military and economic aid programs extended to China by other countries; and that such preferential treatment as may be accorded by the Chinese Government to the importation of such non-trade articles does not apply to Philippine goods imported to China.

The Secretary of Foreign Affairs took note of the Ambassador's statement and expressed his agreement to the construction of the principle of non-discrimination as stated by the Ambassador.

Both the Secretary and the Ambassador expressed the hope that a general trade agreement would be concluded between the two countries in the future.

October 18, 1956

Manila