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October 21, 1997

The Government of the Republic of the Philippines and the Government of the Italian Republic (hereinafter referred to as "the Parties");

Confirming their common wish to further strengthen close cooperative relations between their respective transportation and cooperation establishments,

Seeking to establish beneficial conditions for harmonious cooperation in the fields of transportation and telecommunications, based on the principles of equality and mutual interest;

Have agreed on the following:

ARTICLE 1
GENERAL PURPOSE

1. The Parties shall consider a long term relationship in all matters of mutual interests through the exchange of information, skills and experiences in the fields of transportation and telecommunications.

2. The Parties shall encourage the development of inter-economic and inter-trade relations, and especially technical assistance and cooperation in said fields.

3. The Parties shall encourage the development of direct relations between the subordinate organizational units of their respective Departments and Ministries, e.g., the transportation and telecommunications regulatory bodies, and their respective operators, confederations of manufacturers, where relevant.

4. The Parties shall encourage the interchange of information on the following items:

A. Transportation

a. urban and commuter rail technology;

b. air navigation systems;

c. construction technology

B. Telecommunication

a. development of international telecommunication business between the two countries;

b. exchange of information on new telecommunications technologies;

c. exchange of information on introduction of new telecommunications services;

d. opening of new services between the two countries;

e. exchange of information on standardization; and

f. other activities of mutual interest.

ARTICLE II
PARTNERSHIP AND COORDINATION

Both Parties hereby declare their willingness to further develop and strengthen their partnership and to set up a Coordination Committee to review and discuss from time to time the cooperation pursuant to this MOU and, if need be, formulate and review plans and activities.

ARTICLE III
FACILITATION OF COOPERATION

1. Each Party shall implement measures and undertake activities, singly or jointly with the other Party, to facilitate cooperation in research and development, information exchange, and project managing.

2. In pursuance of the preceding provision and to further develop and strengthen their relationship, the Parties shall consult with each other and open themselves to consultations in the areas aforementioned and shall exchange experts between themselves at the convenient level.

ARTICLE IV
POLICY AND REGULATIONS

1. The Parties shall employ the most secured and efficient way of exchanging information and experiences on policy and regulatory matters in the fields of transportation and telecommunications.

2. Each Party shall facilitate study visits and missions for his own skilled personnel in the other Party's territory to keep each other informed of the current status of reforms and experiences gained in implementing such reforms in the fields mentioned in the previous paragraph.

ARTICLE V
AREAS OF INTEREST IN THE FIELD OF TELECOMMUNICATIONS

On the basis of their respective expertise and the availability of relevant data or information, the Parties shall endeavour to provide each other technical information and training support of the following areas:

- Standardization

- emerging technologies

- radio frequency spectrum management

- satellite communications

- national information infrastructure

ARTICLE VI
AREAS OF INTEREST IN THE FIELD OF TRANSPORTATION

On the basis of their respective expertise and/or mutual interest, and the availability of relevant data and information, the Parties shall endeavour to provide each other technical information and training support of the following areas:

- urban mass transit systems: planning and project implementation

- commuter or heavy rail systems: planning and project implementation

- satellite based air navigation systems

- air traffic planning and management

- railway construction including tunneling

- airport construction

ARTICLE VII
TERMS OF THE MEMORANDUM OF UNDERSTANDING

1. This Memorandum shall enter into force on the date of the later of the two written notifications with which the two Parties, through diplomatic channels, shall communicate the completion of domestic legal procedures for its entry into force. This Memorandum shall have a term of two years.

2. If neither Party informs the other Party in writing its intent to terminate this Memorandum at least one month prior its expiration date, then this Memorandum shall remain in effect for an additional year. This Memorandum may continue for an indefinite period in this manner.

Done at Manila on 21 October 1997, in two originals in the English and Italian languages, both texts being equally authentic.

Entry into Force: February 19, 1998