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October 24, 1986


Excellency:

I have the honor to refer to Your Excellency's Note dated 21 July 1986, the text of which is quoted hereunder:

"I have the honour to refer to Article 1 (2) of the Agreement of 14 October 1985 between our two Governments concerning Financial Co-operation and to item 2.2.2.2 of the "Final Report of 14 August 1985 of the German-Philippine inter-governmental negotiations held in Bonn from 13 to 14 August 1985" and to propose on behalf of the Government of the Federal Republic of Germany that the following Arrangement be concluded.

1. The Government of the Federal Republic of Germany and the Government of the Republic of the Philippines agree to include the island of Samal in the project "Island electrification II".

To this end, an amount of DM 2,000,000 (two million Deutsche Mark) will be needed.

2. The amount of DM 2,000,000 (two million Deutsche Mark) needed for the inclusion of the island of Samal in the project "Island electrification II" shall be financed from the 1985 pledge of the Government of the Federal Republic of Germany.

3. The amount of DM 21,000,000 (twenty-one million Deutsche Mark) earmarked pursuant to item 2.2.2.2 of the Final Report of 14 August 1985 for the Ortigas and Cainta telecommunications project shall be decreased accordingly by DM 2,000,000 (two million Deutsche Mark) to DM 19,000,000 (nineteen million Deutsche Mark)

4. In all other respects the provisions of the aforementioned Agreement of 14 October 1985 including the Berlin clause (Article 6), shall apply to the present Arrangement.

If the Government of the Republic of the Philippines agrees to the proposals contained in paragraphs 1 to 4 above, this Note and Your Excellency's Note in reply thereto expressing your Government's agreement shall constitute an Arrangement between our two Governments, to enter into force on the date of your Note in reply.

Accept, Excellency, the assurance of my highest consideration".

I have the honor to inform Your Excellency that my Government agrees to the proposal contained in paragraphs 1 to 4 quoted above, and that Your Excellency's Note and this Note shall constitute an Arrangement between our two Governments to take effect on the date of this reply.

Accept, Excellency, the renewed assurances of my highest consideration.

                     
 
(Sgd.)
 
SALVADOR H. LAUREL
 
Vice President and
  Minister for Foreign Affairs

His Excellency
Dr. Klaus Zeller
Ambassador of the Federal Republic of Germany
Citibank Centre Bldg., Paseo de Roxas ,
Makati, Metro Manila

COURTESY TRANSLATION

     
THE AMBASSADOR
  OF THE FEDERAL REPUBLIC OF GERMANY
Manila, 21 July 1906

Excellency,

I have the honour to refer to Article 1 (2) of the Agreement of 14 October 1985, between our two Governments concerning Financial Co-operation and to item 2.2.2.2 of the "Final Report of 14 August 1985 of the German-Philippine intergovernmental negotiations held in Bonn from 13 to 14 August 1985", and to propose on behalf of the Government of the Federal Republic of Germany that the "following Arrangement be concluded.

1. The Government of the Federal Republic of Germany and the Government of the Republic of the Philippines agree to include the island of Samal in the project "Island electrification II".

To this end, an amount of DM 2,000,000 (two million Deutsche Mark) will be needed.

2. The amount of DM 2,000,000 (two million Deutsche Mark) needed for the inclusion of the island of Samal in the project "Island electrification II" shall be financed from the 1985 pledge of the Government of the Federal Republic of Germany.

3. The amount of DM 21,000,000 (twenty-one million Deutsche Mark) earmarked pursuant to item 2.2.2.2 of the Final Report of 14 August 1985 for the Ortigas and Cainta Telecommunications project shall be decreased accordingly by DM 2,000,000 (two million Deutsche Mark) to DM 19,000,000 (nineteen million Deutsche Mark).

4. In all other respects the provisions of the aforementioned Agreement of 14 October 1985, including the Berlin clause (Article 6), shall apply to the present Arrangement.

If the Government of the Republic of the Philippines agrees to the proposals contained in paragraphs 1 to 4 above, this Note and Your Excellence's Note in reply thereto expressing your Government's agreement shall constitute an Arrangement between our two Governments, to enter into force on the date of your Note in reply.

Accept, Excellency, the assurance, of my highest consideration.

His Excellency
Salvador H. Laurel
 Vice President
Minister for Foreign Affairs
of the Republic of the Philippines



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