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June 27, 1997

1. GENERAL

1.1 This MEMORANDUM expresses the understandings of the Government of the Republic of the Philippines and the Government of Australia concerning the responsibilities and contributions respectively of the two Governments with regard to the implementation of the ACIAR Project No. FST/96/110 Tree Production Technologies for the Philippines and Tropical Australia.

1.2 The project aims to conclude earlier research to improve the productivity of tree plantations in the Philippines and tropical/sub-tropical Australia. It will evaluate tree and shrub species with a variety of end uses, on different sites, to develop a better understanding of edaphic/climatic requirements of particular species/provenances. The project is further described in Attachment 1 of tiiis Memorandum of Understanding.

2. DEFINITIONS

In This Memorandum:

"Australian institutions, firms and organisations" means Australian institutions, firms or organisations engaged in the project;

"Australian personnel" means Australian nationals or permanent residents or other persons who are not nationals or permanent residents of the Philippines, who are working in the Philippines on the project and whose salaries or other costs are funded from the contribution of the Government of Australia to the project;

"dependant/dependent" means the spouse or unmarried minor children of a member of the Australian personnel or any other person recognised by the two Governments as a

dependant/dependent of a member of the Australian personnel;

"professional and technical material" means equipment, motor vehicles, and other goods imported by members of the Australian personnel or Australian institutions, firms and organisations for their professional use in carrying out their assigned duties under the project and paid for from funds provided by the Government of Australia.

"project supplies" means equipment, material and other goods supplied for the execution of the project, the cost of which is funded from the contribution of the Government of Australia to the project;

"services" means services performed by individuals or by general professional partnerships registered in the Philippines as detailed in Attachment 1;

"personal and household effects" means equipment, motor vehicles and other goods imported by Australian personnel or Australian institutions, firms and organisations for the personal use of Australian personnel and their dependents while engaged in the project;

3. COORDINATING AUTHORITIES AND IMPLEMENTING AGENCIES

3.1 Each Government will implement the research project through respective co-ordinating authorities.

3.2 The Department of Foreign Affairs hereinafter referred to as the DFA, will be the Philippine Co-ordinating Authority. The Australian Centre for International Agricultural Research, hereinafter referred to as ACIAR, will be the Australian Co-ordinating Authority.

3.3 Under the terms of this Memorandum of Understanding, the DFA nominates the Philippine Council for Agriculture, Forestry and Natural Resources Research and Development; University of the Philippines at Los Banos; Visayas State College of Agriculture; and the Department of Environment and Natural Resources Regions 7 and 8, hereinafter referred to as PCARRD, UPLB, ViSCA and DENR respectively, to carry out the project on its behalf, and ACIAR nominates the University of Queensland, hereinafter referred to as UQ, to carry out the project on its behalf, as described and detailed in Attachment 1.

4. CONTRIBUTIONS

4.1 The contributions of the Government of the Republic of the Philippines and the Government of Australia as described in Attachment 1 are estimated to value Seven Hundred and Twenty Nine Thousand Dollars (AUD$729,000) and Two Hundred and Ten Thousand One Hundred and Thirty Eight Dollars (AUD$210,138) respectively. The financial contribution of the Government of the Republic of the Philippines will be subject to its annual Congressional appropriations. The financial contribution of the Government of Australia will be subject to the normal annual parliamentary approval of appropriations.

4.2 Further to the estimated contributions above, additional funds will be provided by the Government of the Republic of the Philippines for payment of taxes incurred through implementation of the project.

5. PERSONNEL

5.1 The Government of the Republic of the Philippines and the Government of Australia will provide personnel possessing the competence required for the project, including Philippine and Australian project leaders. The project leaders will have responsibility

for effective implementation in their respective countries.

5.2 Personnel composition in UQ, PCARRD, UPLB, ViSCA and DENR are described in Attachment 1.

6. IMPLEMENTING, MONITORING AND REVIEW

6.1 Project implementation will follow the schedule specified in Attachment 1. The project leaders will provide a yearly progress report to ACIAR, copies of which will be forwarded to the DFA.

6.2 The Australian and Philippine project leaders will establish regular consultations on project progress, direction and schedules.

6.3 Philippine project leaders will join the yearly co-ordination meeting of all project leaders from the two countries involved in the project.

6.4 The project will be reviewed approximately six months prior to its conclusion. The main reviewer(s) (1 or 2) will be an independent acknowledged eminent scientistfs) of any nationality, specifically contracted by ACIAR for the purpose. The reviewers will be joined by the relevant ACIAR program co-ordinator, and a representative from the DFA during the review process in the Philippines. They will participate in the deliberations.

7. PROJECT SUPPLIES. MOTOR VEHICLES AND PROFESSIONAL AND TECHNICAL MATERIAL AND SERVICES

7.1 In respect of project supplies, motor vehicles, professional and technical material and services whether to be imported into and/or procured within the Philippines for the purposes of the project, the Government of the Republic of the Philippines will:

(a) be responsible for the payment of import duties, Value Added Tax (VAT), and other duties and taxes imposed in the Philippines and be responsible for inspection fees, storage charges and all other levies, fees and charges;

(b) facilitate the expeditious clearance and release of imported project supplies and motor vehicles including the provision of appropriate customs and wharfage facilities in the port of entry closest to the site of the project; and

(c) unless mutually arranged otherwise, provide expeditious internal transport to the site of the project.

7.2 Project supplies and motor vehicles provided by the Government of Australia for the project will be available for the unrestricted use of the project and will not be withdrawn from that use without the consent of the Government of Australia.

7.3 Motor vehicles provided by the Government of Australia for the purposes of the project will be registered as Official Exempt Vehicles and handed over at the completion of the project to the agency or another project as mutually agreed between ACIAR, PCARRD, UPLB, ViSCA and DENR. These vehicles will be under the administrative control of the Philippine project leader for the duration of the project.

8. IMPORTATION OF PERSONAL AND HOUSEHOLD EFFECTS AND MOTOR VEHICLES FOR PERSONAL USE

In respect of the importation into the Philippines of bona fide personal and household effects, including motor vehicles, for the personal use of Australian personnel or their dependants/dependents, which accompany such persons or arrive within six months from either the date of their first arrival in the Philippines, or the signing of this Memorandum whichever is the later, the Government of the Republic of the Philippines will:

(a) be responsible for the payment of all customs duties, other duties, taxes, levies, and other charges of similar nature; and

(b) expedite their clearance through customs.

9. EXPORT OF PROFESSIONAL AND TECHNICAL MATERIAL AND PERSONAL AND HOUSEHOLD EFFECTS

In respect of the export from the Philippines at the end of the assignment of Australian personnel, of professional and technical material, personal and household effects and motor vehicles for personal use, the Government of the Republic of the Philippines will:

(a) be responsible for the payment of all customs duties, taxes, levies and other charges of similar nature; and

(b) expedite clearance through customs and other export controls.

10. LOCAL LAWS AND REGULATIONS

The Philippine Co-ordinating Authority and the Philippine Implementing Agency(s) will exert their best efforts to inform and keep advised Australian firms, institutions and organisations of

local laws and regulations which may concern them in the performance of their duties.

11. CLAIMS

The Government of the Republic of the Philippines will deal with any claim which may be brought by third parties against Australian personnel and Australian firms, institutions and organisations and will hold harmless said Australian personnel and Australian firms, institutions and organisations from civil liability from acts or omissions occurring in the course of the performance of their duties in the execution of the project except where both Governments accept that their acts arise from gross negligence and willful misconduct.

12. SECURITY

The Government of the Republic of the Philippines will provide security arrangement for Australian personnel and their dependents and property on project sites and elsewhere when they are Involved in official activities in. accordance with the present Memorandum. The nature of such security arrangements will be mutually determined by the two Governments.

13. AMENDMENTS

Amendments to this Memorandum may be made at any time by written arrangement between the parties.

14. DURATION

This Memorandum will take effect from the date of its signature. The contribution of the Government of Australia to the Project and all undertakings given will cease on 30 June 1999 or on such other date as may subsequently be arranged between the two Governments.

15. ATTACHMENTS

Attachments referred to in and attached to this Memorandum form an integral part of it.

SIGNED at the City of Manila, this 27th day of June 1997.