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July 21, 1999

CONSIDERING their common interest in promoting cooperation in the field of information technology development;

RECOGNIZING the benefits which may result for both parties from close cooperation in the field of information technology and other areas of mutual interests;

HAVE AGREED AS FOLLOWS:

ARTICLE I
OBJECTIVES

The Contracting Parties, in accordance with the laws and regulations in their respective country, endeavor to promote and establish cooperation in the field of information technology development. To this end they may avail themselves of the services of appropriate institutions and enterprises in their respective countries.

ARTICLE II
AREAS OF COOPERATION

The cooperation shall be carried out by appropriate institutions, agencies, or enterprises designated by the Contracting Parties through the following activities:

- Exchange of information relating to national information technology plans and strategies;
- Feasibility studies and pilot implementation of projects to establish viability and proof of concept;
- Research and development in information technology-related fields to facilitate technology transfer;
- Training in information technology business practices and methodologies; and
- Any other activity related to information technology development mutually agreed by the Contracting Parties.

ARTICLE III
IMPLEMENTING ARRANGEMENTS

(1) Activities undertaken pursuant to this Understanding will be governed by specific implementing arrangements.

(2) The specific financial terms and conditions shall be prescribed in the program of cooperation to be concluded from time to time. The activities carried out pursuant to this Understanding are subject to the agreement of their funding.

ARTICLE IV
JOINT PROJECT TEAMS

To implement these activities, institutions, agencies, and enterprises designated by the Contracting Parties will explore the setting up of joint project teams on joint ventures to work on these projects.

ARTICLE V
CONFIDENTIALITY OF INFORMATION

Each participating party commits itself not to transmit, without the written approval of the other Party, information concerning the results obtained from the cooperative program for information technology development covered under this Understanding to a third person, organization, state, or any other country.

ARTICLE VI
REPORTING REQUIREMENTS

The agencies, institutions, and enterprises participating in the cooperation under this Understanding shall report to the respective Contracting Party in their country on the progress and completion of joint activities and projects undertaken.

ARTICLE VII
JOINT COMMITTEE

(1) A Joint Committee shall be informed to coordinate the implementation of this Understanding. The Committee will be jointly chaired by representatives of the Contracting Parties.

(2) The Committee shall meet at least once a year, or oftener as the Contracting Parties may hereafter mutually agree upon, alternatively in each other's capital or other venue as proposed by the hosting party.

(3) The Committee will establish its own procedures.

(4) Each party will bear its own cost for the representation in the Committee.

ARTICLE VIII
AMENDMENTS

Either Party may propose amendments to this Understanding. Any amendment shall be valid when ratified in writing by the other Contracting Party,

ARTICLE IX
DISPUTE OF SETTLEMENT

Any dispute arising from the interpretation or implementation of this Understanding shall be resolved amicably by the Contracting Parties.

ARTICLE X
ENTRY INTO FORCE AND VALIDITY

(1) This Understanding shall enter into force on the first day of the following month after the date of the latter notification by the Contracting Parties in writing, through diplomatic channels, that their internal legal requirements for the entry into force have been complied with.

(2) It shall remain in force for a period of two (2) years and shall continue to be in force thereafter unless sooner terminated by either Contracting Party giving six (6) months prior notice in writing.

(3) Projects which, at the expiration of this Understanding, have already commenced but have not been fully implemented shall be earned out to their completion in accordance with the provisions of this Understanding unless sooner terminated by mutual agreement of the Contracting Parties.

Done in Manila, Philippines on 21 July 1999 in two originals in English, both being equally authentic.

Entry into Force: March 1, 2000