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December 05, 1956


EXCHANGE OF NOTES CONSTITUTING AN AGREEMENT BETWEEN THE REPUBLIC OF THE PHILIPPINES AND THE UNITED STATES OF AMERICA RELATING TO THE RELINQUISHMENT OF TITLE TO CERTAIN UNITED STATES MILITARY BASES IN THE PHILIPPINES

Note: The Agreement entered into force, December 6, 1956.

THE FOREIGN SERVICE
OF THE
UNITED STATES OF AMERICA

EMBASSY OF THE UNITED STATES OF AMERICA

Manila, December 6, 1956.

No. 0634

Excellency:

I have the honor to refer to the joint statement issued on July 3, 1956, by President Magsaysay and Vice-President Nixon and in particular to numbered paragraphs 1 and 2 thereof, in which were expressed the undertakings of both Governments concerning certain land adjustments related to the strengthening of the bases system in the Philippines and to numbered paragraph 3 thereof, in which the Government of the United States additionally undertook to transfer and turn over the Government of the Republic of the Philippines all title papers and title claims held by the United States to all land areas used either in the past or presently as military bases, except those areas which may not or will be used by the United States for its diplomatic and consul establishments. Negotiations agreed to in that statement concerning the land adjustments have been under way for some time between representatives of our two Governments and will be continued at a later date. For its part, the United States has now completed the necessary administrative processing of the title papers and is prepared at this time to fulfill its undertaking concerning the transfer and turnover of title claims and title papers.

Accordingly, the United States hereby relinquishes to the Philippines all claims to title which the United States may have to the military bases located in the Philippines that have been or are now being used by the United States, and herewith delivers all title papers thereto presently held by the United States, which papers are described in Annex 1 hereto.

In effecting this transfer it is the understanding of the United States that the Philippines for its part in acknowledging such relinquishment of claims to title dnd receipt of title papers:

(A) Agrees that United States makes no warranty of any kind relative to those claims to title, and releases and will hold the United States harmless from any claims or liabilities arising out of any claim to title which the United States may have had to such bases.

(B) Confirms that rights granted United States in the Agreement between the United States and the Republic of the Philippines concerning Military Bases, dated March 14, 1947, are not in any respect impaired or affected by the foregoing relinquishment and transfer, and

(C) Agrees and undertakes to grant to the United States by appropriate deed fee simple title, together with access rights and utility easements, to a parcel of land of approximately twenty-five acres located at Fort William McKinley, said parcel and improvement therein to constitute a part of the diplomatic and consular establishment of the United States. There is attached hereto as Annex 2 a map setting forth the approximate boundaries of said parcel of land.

It is recognized that none of the foregoing will affect title held by United States to that parcel of land, established as diplomatic and consular property of the United States by Proclamation of the President of the United States No. 2694 dated July 3, 1946, promulgated pursuant to and in implementation of Public Law 300, 76th Congress of the United States, on which is located the residence of the Ambassador of the United States at the John Hay Leave and Recreation Center, Baguio, shown as the American Embassy Reservation on Philippine Bureau of Lands Map, Plan II 5958 AND and II-595A and further identified as Lot 58-A delineated and described by specific meter and boundary on Subdivision Plan RSD-19696, of Lot 58, Residential Section "J" Baguio Townsite, situated in the City of Baguio, Luzon.

I am authorized by my Government to state that an acknowledgment of the receipt of this note, which- acknowledgment contains Your Excellency's assurance that the terms and conditions of this note are acceptable to Your Excellency's Government, will, on the date of receipt of such acknowledgment, constitute an agreement between our two Governments.
Accept, Excellency, the renewed assurances of my highest consideration-

 
(SGD.) HORACE H. SMITH
 
 
His Excellency
  CARLOS P. GARCIA
    Secretary of Foreign Affairs for
      the Republic of the Philippines

.DEPARTMENT OF FOREIGN AFFAIRS

No. 3385
Manila, December 6, 1956

Sir :

I am pleased to acknowledge receipt of your note No. 0634 of December 5, 1956, and its enclosures, which note reads as follows:

"No. 0634
Embassy of the United States of America
 
Manila, December 5, 1956.

Excellency:

I have the honor to refer to the joint statement issued on July 3, 1956, by President Magsaysay and Vice-President Nixon and in particular to numbered paragraphs 1 and 2 thereof, in which were expressed the undertakings of both Governments concerning certain land adjustments related to the strengthening of the bases system in the Philippines and to numbered paragraph 3 thereof, in which the Government of the United States additionally undertook to transfer and turn over to the Government of the Republic of the Philippines all title papers and title claims held by the United States to all land areas used either in the past or presently as military bases, except those areas which may now or will be used by the United States for its diplomatic and consular establishment. Negotiations agreed to in that statement concerning the land adjustments have been under way for some time between representatives of our two Governments and will be continued at a later date. For its part, the United States has now completed the necessary administrative processing of the title papers and is prepared at this time to fulfill its undertaking concerning the transfer and turnover of title claims and title papers.

Accordingly the United States hereby relinquishes to the Philippines all claims to title which the United States may have to the military bases located in the Philippines that have been or are now being used by the United States, and herewith delivers all title papers thereto presently held by the United States, which papers are described in Annex I hereto.

In effecting this transfer it is the understanding of the United States that the Philippines for its part in acknowledging such relinquishment of claims to title and receipt of title papers:

(A) Agrees that United States makes no warranty of any kind relative to these claims to title and releases and will hold the United States harmless from any claims or liabilities arising out of any claim to title which the United States may have had to such bases.

(B) Confirms that rights granted United States in the Agreement between the United States and the Republic of the Philippines concerning Military Bases, dated March 14, 1947, are not in any respect impaired or affected by the foregoing relinquishment and transfer, and

(C) Agrees and undertakes to grant to the United States by appropriate deed fee simple title, together with access rights and utility easements, to a parcel of land of approximately twenty-five acres located at Fort William McKinley, said parcel and improvement therein to constitute a part of the diplomatic and consular establishment of the United States. There is attached hereto as Annex 2 a map setting forth the approximate boundaries of said parcel of land.

It is recognized that none of the foregoing will affect title held by United States to that parcel of land established as diplomatic and consular property of the United States by Proclamation o£ the President of the United States No. 2694 dated July 3, 1946, promulgated pursuant to and in implementation of Public Law 300, 76th Congress of the United States, on which is located the residence of the Ambassador of the United States at the John Hay Leave and Recreation Center, Baguio, shown as the American Embassy Reservation on Philippines Bureau of Lands Map, Plan II 5958 AND and II-595A and further identified as Lot 58-A delineated and described by specific metes and bounds on Subdivision Plan BSD-10698, of Lot 58, Residential Section "J", Baguio Townsite, situated in the City of Baguio, Luzon.

I am authorized by my Government to state that an acknowledgment of the receipt of this note, which acknowledgment contains Your Excellency's assurance that the terms and conditions of this note are acceptable to your Excellency's Government, will, on the date of receipt of such acknowledgment, constitute an agreement between our Governments.

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

 
His Excellency
  CARLOS P. GARCIA
    Secretary of Foreign Affairs for
      the Republic of the Philippines

I am pleased to inform you that an agreement in the sense described in the foregoing note is acceptable to the Government of the Philippines; and that this Government agrees to consider the Embassy's note No. 0635 of December 5, 1956, and its enclosures, together with the present reply thereto as constituting an agreement arrived at between our two Governments.

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

  (SGD.) CARLOS P. GARCIA
  Secretary of Foreign Affairs
 
The Honorable HORACE H. SMITH
  Charge d'Affairs, s.i.
    Embassy of the United
      States of America Manila
        Manila

ANNEX 1

TITLE PAPERS PRESENTLY HELD BY THE UNITED STATES

ANNEX "A" BASES

1. CLARK FIELD AIR BASE, PAMPANGA      
           
T.C.T.
4919
   
T.C.T.
5431
"
4918
   
"
6426
"
5433
   
"
6425
"
5907
   
"
2184
"
5906
   
"
2923
"
2511
   
"
2925
"
2510
   
"
2926
"
5909
   
"
2927
"
5908
   
"
5431
"
4917
   
"
6427
"
5003
   
"
2671
"
5911
   
"
5431
"
5910
   
"
2670
"
5912
   
"
2666
"
3107
   
"
2509
"
4916
   
"
4998
"
4915
   
"
2496
"
3106
   
"
2672
"
3105
   
"
2500
"
5691
   
"
1779
T.C.T
4914
   
"
2668
"
5429
   
"
2669
"
4985
   
"
5583
"
4989
   
"
2185
"
4988
   
"
5082
"
5692
   
"
6910
"
4987
   
"
3109
"
4986
   
"
2663
"
4913
   
"
4510
"
7436
   
"
2665
"
5002
   
"
2499
"
4999
   
"
5570
"
5081
   
"
2664
"
5078
   
"
5432
"
5079
   
"
5475
"
5077
   
"
2667
"
5690
   
"
2502
"
5001
   
"
8840
"
5434
   
"
12590
"
5000
   
"
12591
"
5080
   
"
12589
"
4528
   
"
18161
"
5572
   
"
13749-A
"
5571
   
"
13489
"
5430
   
"
T-5705
       
"O.C.T. No. O-525

Originals of the following T.C.T,'s are missing, but photostat copies are available:

T.C.T.
8476
   
T.C.T.
6815
"
8477
   
"
6813
"
2924
   
"
6812
"
6427
   
"
6811
"
6429
   
"
6810
"
6428
   
"
6809
"
8482
   
"
6816
"
6817
   
"
16778
"
6814
   

3. MARIVELES MILITARY RESERVATION, POL TERMINAL AND TRAINING AREA, BATAAN

Army G.O. No. 38 of April 17, 1902
W.D.G.O. No. 56 of March 5, 1904
Executive Order 3197 o£ December 16, 1919
W.D.G.O. No. 135 o£ June 18, 1907
Executive Order 4112 of December 16, 1924

       
T.C.T.
2507
T.C.T.
2488
"
2506
"
2500
"
2505
"
2499
"
2504
"
2498
"
2503
"
2497
"
2502
"
2496
"
2508
"
2495
"
2509
"
2594
"
2510
"
2493
"
2501
"
2492
"
2511
"
2491
"
2512
"
2489
"
2513
"
2490
"
2514
"
2487

4. CAMP JOHN HAY LEAVE AND RECREATION CENTER, BAGUIO

W.D.G.O. No. 48 of November 3, 1903
Executive Order of January 23, 1907 '
Executive Order No. 1610 of September 17, 1912
Executive Order No. 1855 of November 3, 1913
T.C.T. 41

5. ARMY COMMUNICATIONS SYSTEM WITH THE DELETION OF ALL STATIONS IN PORT OF MANILA AREA

No title papers available.

6. ANGELES GENERAL PORT, PAMPANGA

No title papers available.

7. SUBIC BAY, NORTHWEST SHORE NAVAL BASE, ZAMBALES PROVINCE, AND THE EXISTING NAVAL RESERVATION OF OLONGAPO

Navy Dept. G.O. No. 115 of November 28 1902
W.D.G.O. No. 73 of May 19, 1905
W.D. No. 81 of April 19, 1907
Executive Order No. 1026 of February 13, 1909

8. BAGUIO NAVAL RESERVATION

Executive Order No. 1254 of October 10, 1910

Executive Order No. 5139 of June 19, 1929

9. TAWI-TAWI NAVAL ANCHORAGE AND SMALL ADJACENT LAND AREAS

10. CANACAO — SANGLEY POINT NAVY BASE, CAVITE PROVINCE

Executive Order No. 5139 of June 19, 1929

11. BAGOBANTAY TRANSMITTER AREA, QUEZON CITY, AND ASSO- ! CIATE RADIO RECEIVING AND CONTROL SITES, MANILA AREA

No title papers available.

12. TARUMPITAO ISLAND, (LORAN MASTER TRANSMITTER STATION), PALAWAN

No title papers available.

13. TALAMPULAN ISLAND, COAST GUARD NO. 354 (LORAN), PALAWAN

No title papers available.

14. MAULO POINT (LORAN STATION), ZAMBALES

No title papers available.

15. CASTILLEJOS COAST GUARD NO. 356, ZAMBALES

No title papers available.

16. CAMP WALLACE, SAN FERNANDO, LA UNION

W.D.G.O. No. 34 of October 13, 1903

       
T.C.T.
1339
"
1395
"
1340
"
1396
"
1373
"
1432
"
1374
"
1481
"
1377
"
1482
"
1384
"
 

ANNEX "B" BASES


1. MACTAN ISLAND ARMY AND NAVY AIR BASE

No title papers available.

2. FLORIDA BLANCA AIR BASE, PAMPANGA

No title papers available.

3. AIRCRAFT SERVICE WARNING NET

No title papers available.

4. PUERTO PRINCESA ARMY AND NAVY AIR BASE, INCLUDING NAVY SECTION BASE AND AIR WARNING SITES, PALAWAN

No title papers available.

5. TAWI TAWI NAVAL BASE, SULU ARCHIPELAGO

No title papers available.

6. APARRI NAVAL AIR BASE

No title papers available.

7. LEYTE — SAMAR BASE, INCLUDING SHORE INSTALLATIONS AND AIR BASE

No title papers available.

ARTICLE XXI

TEMPORARY INSTALLATIONS

1. PORT OF MANILA RESERVATION W.D.G.O. No. 184 of November 2, 1905 Executive Order No. 1298 of February 15, 1911 Proclamation No. 22 of June 1, 1918 Executive Order No. 3344 of October 20, 1920 Executive Order No. 3500 of June 20, 1921

Executive Order No. 4787 of December 19, 1927
Proclamation No. 431 of December 11, 1931
Philippine Department of Foreign Affairs Unnumbered Note, dated
5 December 1951
Philippine Department of Foreign Affairs Note No. 8639, of April 1951
U.S. Embassy Note No. 860 of 14 January 1952

2. FORT WILLIAM MCKINLEY, RIZAL (INCLUDING NICHOLS FIELD) T.C.T. 228
Deed of Sale, Number 480, Copy 2a, 5 August 1902

 
OTHER U. S. MILITARY RESERVATIONS
 
 
TRANSFERRED TO THE PHILIPPINES BY
 
 
U. S. EMBASSY NOTE NO. 0509 of 14 MA 1949
 

1. AUGUR BARRACKS (ZETTEL FIELD), JOLO, SULU
W.D. G.O. No. 177 of November 1, 1904
W.D. G.O. No. 76 of May 25, 1905
Executive Order No. 1703 of February 14, 1913
Executive Order No. 4077 of September 23, 1924
Executive Order No. 5493 of November 18, 1930
T.C.T. 19
T.C.T. 24
Fort Asturias (Sub Post of Augur Barracks)
W.D. G.O. No. 177 of November 21, 1904
T.C.T. 21
T.C.T. 23

2. CALUMPANG POINT RESERVATION, CAVITE, LUZON

Army G.O. No. 38 of April 17, 1902
W.D. G.O. No. 56 of March 25, 1904

3. CAMP DUMPUS, TACLOBAN, LEYTE

W.D. G.O. No. 34 of October 13, 1903

T.C.T.
23
 

27
 

28
 

29
 

30
 

31
 

32
 

33
 

34
 

35
 

36
 

37
 

4. CAMP CONNEL, SAMAR.

W.D. G.O. No. 34 of October 13, 1903
W.D. G.O. No. 201 of September 27, 1907

5. CAMP DOWNES, ORMOC, LEYTE

W.D. G.O. No. 34 of October 13, 1903
Executive Order of April 9, 1907
Executive Order No. 1806 of July 26, 1913

T.C.T.
10
 
"
11
 
"
46
 

6. CAMP ELDRIGE, LOS BAKfOS, LAGUNA, LUZON W.D. G.O. No. 34 of October 13, 1903
W.D. G.O. No. 188 of December 14, 1904 Executive Order No. 2316 of February 14, 1916

T.C.T.
1
 
"
9
 
"
14
 
"
19(Missing)
 
"
18
 
"
288
 


7. CAMP GREGG, BAYAMBANG, PANGASINAN, LUZON

W. D. G. O. No. 34 of October 13, 1903

8. CAMP KEITHLEY (MAGUIRE FIELD), DANSALAN, MINDANAO

W. D. G. O. No. 12 of January 28, 1905
W. D. G. O. No. 205 of October 3, 1907

9. CAMP OVERTON, ILIGAN, LANAO, MINDANAO

Executive Order No. 985 of December 1, 1908
Executive Order. No. 1595 of August 31, 1912
Army G.O. No. 112 of July 31, 1903

T.C.T.
1189
 
"
1190
 

10. CHROMITE ORE DEPOSIT, ZAMBALES, LUZON

Executive Order No. 5690 of August 20, 1931

11. CAUAYAN FIELD, ISABELA

Executive Order No. 4560 of January .5, 1927

12. CUARTEL MEISIC, MANILA

W. D. G. O. No. 77 of May 27, 1905

13. FORT SAN PEDRO, CEBU, CEBU

W. D. G. O. No. 34 of October 13, 1903
W. D. G. O. No. 157 of September 22; 1905
Executive Order No. 1215 of June 17, 1910.

14. FORT SAN PEDRO, CEBU, CEBU

W. D. G. O. No. 43 of October 27, 1903
W. D. G. O. No. 161 of September 30, 1905
W. D. G. O. No. 173 of October 12, 1906

T.C.T.
46
 
"
69
 
"
93
 
"
522
 
"
523
 
"
524
 
"
525
 

15. LUDLOW BARRACKS, PARANG, COTABATO, MINDANAO

W. D. G. O. No. 43 of March 4, 1904
Executive Order No. 1055 of March 30, 1909

T.C.T.
10
 
"
11
 
"
7
 
"
8
 
"
12
 
"
18
 
"
40
 


16. MALABANG FIELD (PORTION OF TONREY BARRACKS), LANAO, MINDANAO

Executive Order No. 5308 of March 20, 1930

17. MOMUNGAN MILITARY RESERVATION, MOMUNGAN, LANAO, MINDANAO

Executive Order No. 2136 of February 10, 1915
Executive Order No. 2405 of June 19, 1916

18. NOZALEDA MILITARY RESERVATION, CALLE GRAL. LUNA, MANILA

W. D. G. O. No. 30 of March 7, 1911

19. SANBORN FIELD (SANBORN) (REGAN BARRACKS), DARAGA, ALBAY, LUZON

W. D. G. O. No. 177 of November 21; 1904
W. D. G. O. No. 163 of December 8, 1911
Executive Order No. 3086 of May 11, 1919
Executive Order No. 4787 of December 19, 1927

T.C.T.
19
 
"
23
 
"
25
 
"
24
 
"
31
 
"
30
 
"
35
 
"
45
 
"
26 (Missing)
 


20. TAGABIRAN MILITARY RESERVATION, CATUBIG, SAMAR

T.C.T. 11

21. WARWICK BARRACKS, CEBU, CEBU

W. D. G. O. No. 34 of October 13, 1903
Navy Department G. O. No. 132 of June 24, 1903
W. D. G. O. No. 134 of July 13, 1910

22. WOLFE FIELD, ZAMBOANGA, MINDANAO

Executive Order No. 5129 of May 28, 1929

23. NICHOLS FIELD (ALL OF PARCEL 1 and PARCEL 2 LESS APPROXIMATELY 350.60 ACRES, FORT WILLIAM MCKINLEY RESERVATION), RIZAL, LUZON

T. C. T. 228
Deed of Sale, Number 480, Copy 2a, of 5 August 1902

24. CUARTEL DE ESPANA, INTRAMUROS, MANILA, INCLUDING SANTA LUCIA BARRACKS

W. D. G. O. No. 30 of March 7, 1911

25. FORT SANTIAGO, MANILA

W. D. G. O. No. 125 of July 20, 1904
W. D. G. O. No. 77 of May 27, 1905
W. D. G. O. No. 30 of March 7, 1911

26. OLD MEDICAL SUPPLY DEPOT, MANILA

W. D. G. O. No. 30 of March 7, 1911

27. STERNBERG GENERAL HOSPITAL, MANILA

W. D. G. O. No. 30 of March 7, 1911

28. CUARTEL DE INFANTERIA, INCLUDING ESTADO MAYOR, MANILA

W. D. G. O. No. 37 of May 27, 1905
W. D. G. O. No. 30 of March 7, 1911

29. MALATE BARRACKS, MANILA

W. D. G. O. No. 77 of May 27, 1905
W. D. G. O. No. 181 of November 16, 1908

OTHER U.S. MILITARY RESERVATIONS TANSFERRED TO THE PHILIPPINES BY U.S. EMBASSY NOTE NO. 115 OF 12 OCTOBER 1947

1. CORREGIDOR ISLAND (FORT MILLS), MANILA BAY

Army G. O. No. 38 of April 17, 1902
W. D. G. O. No. 56 of March 25, 1904

T.C.T.
6
T.C.T.
28
T.C.T.
21
T.C.T.
29
T.C.T.
22
T.C.T.
30
T.C.T.
23
T.C.T.
31
T.C.T.
24
T.C.T.
32
T.C.T.
25
T.C.T.
33
T.C.T.
26
T.C.T.
34
T.C.T.
27
T.C.T.
73
   
T.C.T.
74

2. PETTIT BARRACKS, ZAMBOANGA

W. D. G. O. No. 116 of June 27, 1904
W. D. G. O. No. 76 of May 25, 1905
W. D. G. O. No. 186 of November 21, 1905
Executive Order No. 2234 of 13 August 1915

T.C.T.
4
 
T.C.T.
20
 
T.C.T.
22
 
T.C.T.
5564
 

OTHER U. S. MILITARY RESERVATIONS NOT PREVIOUSLY RELEASED

1. IMUS RIVER NAVAL RESERVATION, CAVITE

Executive Order No. 5139 of 19 June 1929

2. CUYO U.S. NAVAL RADIO STATION, PALAWAN

Governor General Proclamation of 2 August 1906

3. ABUYOG U. S. NAVAL RADIO STATION, SORSOGON

Governor General Proclamation of 2 August 1906

4. CAPE BOJEADOR U. S. NAVAL RADIO STATION, ILOCOS NORTE

Governor General Proclamation of 2 August 1906

5. ROMBLON U. S. NAVAL RADIO STATION, ROMBLON ISLAND, ROMBLON

Governor General Proclamation of 2 August 1906

6. U. S. NAVAL RESERVATION, CAVITE, LUZON Executive Order No. 5139 of June 19, 1929

ANNEX 2

DESCRIPTION OF DIPLOMATIC & CONSULAR
PROPERTY

1. John Hay Leave and Recreation Center: A parcel of land beginning at a point S 45° 03' E 1,399.10 N from Triangulation Station, Baguio,

Thence
"N.
64°
39'
 
114.63
Meters
 
"
N.
47°
16'
 
12.50
"
 
"
N.
61°
16'
 
100.81
"
 
"
S.
26°
30'
 
44.81
"
 
"
S.
55°
46'
 
162.04
"
 
"
S.
35°
58'
 
143.79
"
 
"
S.
20°
31'
 
268.54
"
 
"
S.
16°
10'
 
393.50
"
 
"
S.
33°
56'
 
68.38
"
 
"
N.
72°
08'
 
212.32
"
 
"
N.
37°
23'
 
235.98
"
 
"
N.
18°
57'
 
86.23
"
 
"
N.
10°
03'
 
277.82
"
 
"
N.
09°
41'
 
40.58
"
 
"
N.
23°
01'
 
40.40
"
 
"
N.
43°
17'
 
106.80
"
 
"
N.
17°
48'
 
68.51
"
 

Further identified as Lot 58-A delineated and described by metes and bounds on a Sub-division Plan (BSD-10698) of Lot 58, Residential Section "J", Baguio Townsite, situated in the City of Baguio, Luzon, together with all improvements thereon, all necessary rights of ingress and egress to public thoroughfares or rods, and any utility easements required to enable continued enjoyment of said land and improvements.

2. Fort William McKinley: A parcel of land approximately 25 acres located at Fort William McKinley, adjacent to Forbes Park, suitable for housing development as a part of the diplomatic and consular establishment of the United States, the exact boundary to be determined by a subsequent site survey.

ANNEX 3
RELINQUISHMENT BY THE UNITED STATES OF RIGHTS TO USE
CERTAIN MILITARY BASES OR PORTIONS THEREOF

1. The United States hereby relinquishes to the Philippines any and all rights to the use of the following listed military reservations except as specified herein:

A. ANNEX "A" BASES

(1) Mariveles Military Reservation, Bataan Province, Luzon as established by Executive Order 4112 dated 16 November 1924, consisting of about 44,500 hectares more or less; excepting therefrom (1) the Bataan POL Terminal at Kitang Point, Limay, Bataan Province, as described in Appendix A, and (2) the quarry site as described in Appendix B, lying within that portion of the reservation known as the Naval Reservation Mariveles, where the United States shall have the sole use and right to quarry without further negotiation or permit.

(2) Tawi-tawi Naval Anchorage, Tawi-tawi Bay, Tawi-tawi Group, Sulu Archipelago, consisting of 129.5 square kilometers of water area, more or less, and small adjacent land areas.

(3) Angeles General Depot, Pampanga Province, Luzon, consisting of 300 hectares more or less.

(4) Castillejos Coast Guard Loran Station, Zambales Province, Luzon, consisting of 7 hectares, more or less.

(5) Silang Station, Site 1, Cavite Province, comprising 9 hectares, more or less, as shown on Plan PS-20026 of the Department of Agriculture and Natural Resources, Bureau of Lands and the Republic of the Philippines dated 21 March 1951.

(6) Baguio Naval Reservation, Benguet Sub-Province, Mountain Province, comprising 30 hectares, more or less.

B. ANNEX "B" BASES

(1) Florida Blanca Air Base, (now known as the Basa Air Base), Pampanga, Luzon, consisting of 5,792 hectares, more or less, subject to the provisions of Annex 5.

(2) Puerto Princesa, Army and Naval Air Base, Palawan, consisting of 809 hectares, more or less, subject to the provisions of Annex 5.

(3) Tawi-Tawi Naval Base, Tawi-Tawi and Sibutu Groups, Sulu Archipelago consisting of 46,686 hectares, more or less.

(4) Leyte-Samar Naval Base, Samar, consisting of 5,994 hectares, more or less, subject to the provisions of Annex 5.

(5) Aparri Naval Air Base, Abulug, Cagayan Province, Luzon, consisting of 396 hectares, more or less.

C. ARTICLE XXI BASES

(1) The United States hereby relinquishes to the Philippines the entire Port of Manila reservation (now known as the Manila Air Station) with boundaries as of 1941 it being understood that the Philippines undertakes to assist the United States to find suitable housing, accommodating, office space and other necessary facilities to replace those within the Military Port of Manila currently occupied by essential U. S. military activities which are to be relocated within a period of five years as a result of this Supplementary Agreement. During this interim period, essential facilities at the Port of Manila will be made available for use by the United States at a nominal fee under a leasing arrangement.

(2) The United States hereby relinquishes to the Philippines any and all rights, to the use of Fort William McKinley, consisting of 2,430 hectares, more or less, except as provided in Annex 2, and Appendix C.

2. Reduction in Area of Certain Annex "A" Military Bases.

The United States hereby agrees to reduce the area of certain existing U. S. military bases by relinquishing to the Philippines any and all rights to the use of the following described property:

a. Certain portions of Clark Field-Fort Stotsenberg military reservation, provinces of Pampanga, Zambales and Tarlac, which portions are more particularly described and delimited in Appendix D, paragraph 1, consisting of 12,677 hectares, more or less.

b. Certain portions of Camp Wallace Air Station, San Fernando, La Union, which portions are more particularly described and delimited in Appendix F, consisting of 50 hectares, more or less.

c. Certain portions of U!S. Coast Guard Loran Transmitting Station, Ta-lampulan Island, Palawan, which portions are. more particularly described and delimited in Appendix G.

d. Certain portions of U.S. Coast Guard Loran Transmitting Station, Ta-rumpitao Point, Palawan, which portions are more particularly described and delimited in Appendix H, such portions consisting of 140 hectares, more or less, except those portions which may be required for an aircraft control and warning station under the provisions o£ paragraph 1 A (6) Annex 5 below.

e. Certain portions of John Hay Leave and Recreation Center Benguet Sub-Province, Mountain Province, consisting of 175 hectares, more or less, which portions are more particularly described in Appendix 1. The Philippines agrees to provide such police patrols on that portion of the Philippine National Highway running through the John Hay Leave Recreation Center, as are necessary to insure strict adherence to the speed limit and other traffic regulations established by the Base Commander for the purpose of insuring the safety of personnel on the Reservation.

ANNEX 4

TRANSFER OF OLONGAPO TO PHILIPPINE CONTROL

In order that the transfer of Olongapo to Philippine administration and control may be accomplished in an orderly manner calculated to ensure the minimum interference with both the inhabitants of Olongapo and with the effective accomplishment by the U.S. Naval Base, Subic Bay, of its military mission, it is agreed that the Philippines and the United States will cooperate and coordinate in the expeditious accomplishment of certain tasks necessary to the early and effective implementation of the transfer as set forth below:

a. The U.S. will prepare the necessary plans for the development of that portion of the present community of Olongapo within the boundaries described in Enclosure No. (1) hereto.

b. Within the limits of funds available, the U.S. will make improvements in the above mentioned portion of Olongapo as follows:

1. Improve flood control and drainage.
2. Develop sites as necessary for relocation of displaced land occupancy permit holders.
3. Provide electric power plant adequate for the present electrical load in the community of Olongapo.
4. Provide improvements to present water supply and distribution system adequate for the present needs of the community of Olongapp.
5. Reimburse the owners of structures required to be evacuated incident to delimitation of boundaries and community improvements. The reimbursement shall be reasonable and based upon the value stated in the building permits, with due consideration for depreciation.

c. Inasmuch as payment will not be made for existing structures until evacuation has been accomplished, it is agreed that the Philippines will take measures as necessary to insure the expeditious evacuation of occupants of structures south of the new boundary. The new land sites north of the boundary will be available for relocation of displaced land occupancy permit holders.

d. Within the limits of funds available, the United States will construct a highway approximately eight miles in length from a point on Philippine National HighwayNo. 7 about one mile northeast of Olongapo to a point on Philippine Highway No. 7 about one mile north of Subic City, said highway to follow an alignment as direct as permitted by topography and provisions of a reasonable gradient. This road, when built, will become a part of the Philippine National Highway No. 7, bypassing that portion which now passes through Olongapo and along the western shore of Subic Bay.

e. The Philippines will acquire a right of way for the Olongapo by-pass road described in subparagraph d above, the right of way to extend from the point where said highway crosses the western boundary of the U.S. Naval Base to a point on Philippine National Highway No. 7 just north of Subic City.

f. Upon completion of the Olongapo by-pass road described above, the Philippines will remove from the National Highway system that portion of the present National Highway No. 7 lying within the boundaries of the Naval Base as described in Enclosure No. 1 hereto, and will relinquish control thereof and all right of way thereto to the United States.

g. Upon completion of the above improvements and the movement of the inhabitants out of areas now south of the new boundary line, the United States will transfer administration and control of the community of Olongapo to the Philippines. The Philippines and the United States agree to expedite the transfer of the community of Olongapo in accordance with the procedures described herein, and in any event not later than three years after the effective date of this Agreement. After completion of this transfer, the boundary between Olongapo and the United States Naval Base, Subic Bay, in the east, south and westerly directions will be as shown in Enclosure No. 1 hereto.

h. Upon transfer of Olongapo to the administration and control of the Philippines, the United States will relinquish to the Philippines its right to use the entire portion of the United States Naval Base, Subic Bay, lying north of National Highway No. 7 as modified by the new Olongapo by-pass road described in subparagraph d above, in Enclosure No. (1) hereto, and as delimited in Appendix E.

Enclosure No. (1): Map Approximate proposed boundary of Olongapo.

ANNEX 5

ADDITIONAL LAND REQUIRED FOR THE SYSTEM OF MILITARY BASES

1. In order to make more effective the common defense of the Philippines and the United States, both governments recognize that additional lands suitable for the following military purposes are required at the following general locations: A. Aircraft Control and Warning Stations, each consisting of an area of 60 hectares, more or less, plus access to a landing strip for light transport and liaison aircraft:

{1) Mahatoa, Cagayan Province, Datan Island, Batanes
(2) Pasuquin Flats, Laoag, Ilocos Norte Province, Luzon
(3) Cape Bolinao, Pangasinan Province, Luzon
(4) Lubang Island, Occidental Mindoro Province, Mindoro
(5) Dagmay, Palawan Province (North), Palawan, located at latitude 11 °21'30" N., Longitude 119°29'24" E.
(6) Mantaya Bay, Palawan Province (South), Palawan, located at latitude 09°03'30" N., Longitude 117°40'20" E.

B. A Second Major Operating Air Base, the location of which is to be determined after a survey by military experts, consisting of an area of 1,200 hectares, more or less, contiguous to an area suitable for the construction of a 10,000 foot runway, 200 feet wide.

C. Fighter-Interceptor and Fighter Bomber Dispersal and Recovery Air Fields, each consisting of 1,200 hectares, more or less, continguous to anarea suitable for the construction of a runway 9,000 feet long and 200 feet wide:

{1) San Fernando, La Union Province, Luzon
(2) Pattao, Cagayan Province, Luzon
(3) Puerto Princesa, Palawan Province, Palawan
(4) City of Zamboanga, Mindanao

D. Additional Dispersal Installations, each consisting of an area of 2 hectares, more or less, located in the vicinity of an existing runway and with taxi-way access to the runway:

(1) Basa Air Base, Florida Blanca, Pampanga Province, Luzon
(2) Lipa, Batangas Province, Luzon
(3) San Jose, Occidental Mindoro Province, Mindoro
(4) Legaspi, Albuy Province, Luzon
(5) Guiuan, (Leyte-Samar) Samar Province, Samar
(6) City of Davao, Mindanao

It is agreed that upon request from the United States, the Philippines will contribute the land needed tp extend the runways at the above locations to the minimum of 6,000 feet.

E. Coast Guard Loran Transmitter Stations

(1) Talampulan Island, Palawan Province, ingress and egress rights and right-of-way along the access road for a fuel pipe-line from the station site to the beach landing area, in addition to the 12 hectares more or less at the present site, as described in Appendix G.

(2) Tarumpitao Point, Palawan Province: 77 hectares, more or less, for a supporting air strip as described in Appendix H.

(3) Naulo Point, Zambales Province; 97 hectares, more or less, for a supporting air strip, in addition to the present site of 7 Ha., or less, as described in Appendix J.

(4) Batan Island, Batanes Province; ingress and egress rights via the public road; water rights to a spring located approximately 1372 meters northwest of station site and a 3 meter wide easement from north boundary of station along existing road to Imnajbu for approximately 610 meters, in, addition to the 3 hectares, more or less, at the present site, as described in Appendix K.

(5) Panay Island, Catanduanes Province; ingress and egress rights and a 5 meter right-of-way on each side of the road to the station
for a fuel pipeline and to permit flattening the backslope of this access road, in addition to the 5 hectares more or less at the present site, as described in. Appendix L.

F. United States Naval Base, Subic Bay, approximately 15,723 hectares as described in Appendix E, including one parcel of 11,890 hectares for the establishment of aircraft mining, bombing, rockets and bombardment, ranges, a shore bombardment range and impact and safety areas, anti-aircr-ft installations together with necessary access rights, and field firing ranges for Fleet Marine Force units; one parcel of 787 hectares to provide for additional ammunition storage facilities; one parcel of 642 hectares to provide for additional communications facilities and access thereto; one parcel of 2,404 hectares to provide training and staging facilities for Army and Fleet Marine Force units, access and security of communications facilities, additional, ammunition storage, and antiaircraft installations; and four parcels of approximately 20 hectares each for antiaircraft installations the exact location to be determined after a survey by U.S. military experts. The foregoing does not include land for Morong Transmitter Station Site as described in Appendix Q, the acquisition of which for addition to the United States Naval Base, Subic Bay, is by the Philippines agreed, but which acquisition is to be handled under separate arrangements covered by an exchange of diplomatic notes.

G. United States Naval Station, Sangley Point, one parcel of land, approximately 6.4 hectares, and another parcel approximately 8.2 hectares reclaimed 'from Manila Bay by the United States Navy, plus three water areas to be reclaimed as described in Appendix M.

H. Camp Wallace Air Station, San Fernando, La Union, 14 parcels of privately owned land, totalling approximately 12 hectares, located within the present reservation for installation and development of new facilities.

I. Meterological Survey Station, northern Mindanao, a site of approximately 50 hectares, the exact location to be determined after a survey by U.S. military experts.

J. Clark Field-Fort Stotsenberg, two sites of approximately 20 hectares each to be located as determined after a survey of U.S. military experts in the vicinity of the northern and southern slopes of Mt. Arayat, for the provision of anti-aircraft installations, together with the necessary access and other rights-of-way.

2. The Philippines and the United States hereby agree that with respect to the following military bases which will be developed when funds become available:

a. The second major operating air base:

{1) The two governments will jointly establish and construct a landing strip and taxiway to be jointly used in accordance with procedure agreed upon by the Philippine-U.S. Mutual Defense Board.

(2) Subject to military necessity, this landing strip and taxiway facility also may be used under terms and conditions mutually satisfactory to the appropriate authorities for commercial aviation which shall provide its own separate operational and administrative facilities.

(3) The Philippines will establish such separate operations and administrative facilities as it may determine for the Philippine Air Force.

b. The exact boundaries of the lands required for the six aircraft control and warning stations, the second major operating air base, the four fighter-interceptor and fighter-bomber dispersal and recovery airfields, and the six additional dispersal installations will be determined by the Philippine-U.S. Metes and Bounds Committee in accordance with the instructions and guidance provided by the Philippine-U.S. Mutual Defense Board.

c. The aircraft control and warning stations will be manned and operated initially by the United States Armed Forcesx and there will begin as soon as possible, the training on such sites of members of the Armed Forces of the Philippines, to the end that ultimately the aircraft control and warning system will be operated by the Armed Forces of the Philippines with U.S. assistance only as necessary.

d. The runways and taxiways at the four fighter-interceptor and fighter-bomber dispersal and recovery air fields and at the six additional aircraft dispersal sites, will be available for joint use by the Armed Forces of both governments in accordance with procedures determined by the Philippine-U.S. Mutual Defense Board.

12. Camp Wallace, as described in Appendix F attached.

13. Bataan POL Terminal, as described in Appendix A attached.

14. Quarry Site, Naval Reservation, Mariveles, as described in Appendix B attached.

15. Bagobantay Naval Communications Transmitter Station, as described in Appendix O.

16. Bamban Radio Range Station Site, as described io Appendix P.

17. U.S. Army Communications System.

ANNEX 7
TERMS OF REFERENCE OF THE PHILIPPINE U.S. METES AND BOUNDS COMMITTEE

1. Establishment of the Committee

There is hereby established under the Philippine-U.S. Mutual Defense Board a Philippine-U.S. Metes and Bounds Committee. The Committee shall report to the Board through the Joint Military Secretariat of the Board.

2. Purpose of the Committee

The purpose of the Committee is to determine, as expeditiously as possible, in accordance with the general guidance contained in this Supplementary Agreement and such additional instructions as may be issued by the Philippine-U.S. Mutual Defense Board, the exact metes and bounds of all United States military bases located in the Philippines.

3. Membership of the Committee

a. The Committee shall be composed of four military engineer officers of appropriate rank, two from the Armed Forces of the Philippines and two from the Armed Forces of the United States, appointed respectively by the Philippine and U.S. Co-Chairmen of the Philippine-U.S. Mutual Defense Board. The senior officer from each country shall act as Co-chairman of the Committee.

b. The members of the Committee shall be assisted by such staff, military or civilian, as they consider appropriate.

4. Duties and Responsibilities of the Committee The Committee shall as rapidly as possible:

a. Assemble all existing U.S. or Philippine survey data pertaining to the present U.S. bases in the Philippines, and agree on what portions of existing data are acceptable to both parties as an accurate description of the metes and bounds of these bases.

b. Conduct such engineering surveys as may be necessary to establish complete and mutually agreed metes and bounds for all U.S. bases in the Philippines

c. Carry out such other duties as may be assigned by the Philippine-U.S. Mutual Defense Board.

d. Any matters which cannot be resolved by the Committee shall be referred to the Philippine-U.S. Mutual Defense Board for resolution.

5. Field Survey Parties

Unless otherwise agreed by the Committee, each of the required field survey parties shall be composed of United States and licensed Filipino surveyors to survey and establish the metes and bounds of all U.S. bases in the Philippines by
markers.

6. Financial Arrangements

The cost of all surveys and the establishment of such permanent markers and/or bench marks as are necessary for the accurate and permanent location of the metes and bounds of all U.S. bases in the Philippines shall be borne by the United States. The United States shall employ field survey parties as necessary to accomplish the required surveys as expeditiously as possible.

7. Conduct of Meetings

The Committee shall meet as mutually agreed upon by the Co-chairmen. All meetings of the Committee shall be held in executive session and the release of information concerning the activities of the Committee shall be as agreed upon by the; Philippine-U.S. Mutual Defense Board.

8. Offices of the Committee

The Philippine Government shall provide suitable offices for the Committee in close proximity to the Joint Military Secretariat of the Philippine-U.S. Mutual Defense Board.

9. Records
The permanent records of the Committee shall be filed with the Joint Military Secretariat of the Philippine-U.S. Mutual Defense Board.

10. Cooperation by Philippine and U.S. Military Agencies

All Philippine and U.S. military commands or installations will cooperate fully with the work of the Committee and will provide, upon request and insofar as is practicable, such local administrative and logistic support as may be required to facilitate and expedite the completion of the work of the Committee.

11. Disestablishment of the Committee

Upon completion of the determination of the exact metes and bounds of all U.S. military bases and installations in the Philippines, the Committee shall report that fact to the Philippine-U.S. Mutual Defense Board and request that the Committee be disestablished.

ANNEX 8
TERMS OF REFERENCE PHILIPPINE-U.S. MUTUAL DEFENSE BOARD

1. Establishment of the Board:

There is hereby established under the Philippine-U.S. Mutual Defense Council a permanent Philippine-U.S. Mutual Defense Board with headquarters at Manila. The Board shall report to the Council through the Military Representatives of that Council.

2. Purpose:

The purpose o£ this Board is to provide continuing inter-governmental machinery for direct liaison and consultation between the responsible Philippine and U.S. authorities on military matters of mutual concern so as to improve, through continuing military cooperation, the common defense of these two sovereign countries.

3. Composition of the Board:

a. The Board shall be composed of:

(1) For the Philippines:

(a) Co-chairman of the Boards:—Chief of Staff of the Armed Forces of the Philippines or a general officer designated by him.

(b) Members of the Board — Chiefs of Staff of the major services of the Armed Forces of the Philippines.

(2) For the U.S.

(a) Co-Chairman of the Board: — Commander of the U.S. unified command in the Philippines or a flag or general officer designated by the U.S. Military Representative of the Council.

(b) Members of the board: The senior U.S. service representatives of the Army, Navy and Air Force on duty in the Philippines and, if not already represented, the Chief, JUSMAG.

b. The members of the Board shall be assisted by such staff, military or civilian, as they consider appropriate.

4. Terms and Reference:

The terms of reference of the Board shall be to consider and by agreement between the Co-chairmen take action on matters within its competence as established by agreed policies and procedures, or when necessary, recommend to their respective governments how best to resolve in the muteal interest of the two sovereign countries such problems as may arise in connection with:

a. Working relationships with regard to specific matters as enumerated in the Military Bases Agreement of 1947 which provides for joint consultation, or such other matters related to the implementation of this agreement as the Philippine—U.S. Mutual Defense Council or their Military Representatives may direct the Board to consider.

b. The preparation of joint outlined plans for the development of a system of defensive military bases in the Philippines as provided in Article II, paragraph 2, of the Military Bases Agreement of 1947.

c. The correlation, in accordance with existing laws and policies of the respective governments, of military matters of mutual concern which arise from the implementation of the Philippine-U.S. Mutual Defense Treaty, the Military Bases Agreement and the Agreement on Military Assistance.

5. Frequency of Meetings:
The Board shall meet at the call of either Co-chairman, but in any event tegular meetings will be held at least once a month.

6. Conduct of Meetings:
All meetings of the Board shall be held in executive session. The release of information concerning the decisions or activities of the Board shall be as mutually agreed upon by the Co-chairman of the Board.

7. Joint Military Secretariat:
The Joint Military Secretariat of the Board shall consist of one Philippine and one U.S. officer, each of the rank of major. The Philippine Government shall provide necessary clerical and administrative support for the Joint Military Secretariat.

8. Offices of the Board:
The Philippine Government shall provide suitable offices for the Board. The office of the Joint Military Secretariat, with the permanent records of the board will be maintained in these offices.

ANNEX 10
IMPLEMENTATION OF ARTICLE XIII OF MILITARY BASES
AGREEMENT

In implementation of paragraph 3 of Article XIII of the Military Agreement, it is agreed that where an offense not arising out of the actual performance of a specific military duty or official duty is committed within a base area against a Philippine national or person habitually resident in the Philippines (not a member of the armed forces of the United States on.active duty) the senior U.S. Commander in the Philippines and the Philippine Secretary of Justice shall consult with a view to determining together the disposition of the case in the mutual interest of both countries in their common defense.

Should the question arise, the U.S. base commander shall certify as to whether or not such an offense arose out of the actual performance of a specific military or official duty. The senior U.S. Commander in the Philippines will, at the request of the Philippine Secretary of Justice, review with him the U.S. base commander's certification,

[Negotiating record will show that in the event of a lack of agreement between the Philippine Secretary of Justice and the senior U.S. Commander in the Philippines, the U.S. Commander in the Philippines, the U.S. base commander's determination shall stand.]

In implementation of paragraph 4 of Article XIII of the Military Bases Agreement, it is agreed that the Philippine authorities will continue their present favorable practice with respect to requests by the United States for the right to exercise jurisdiction.

ANNEX 11

NATURAL RESOURCES

The following principles, procedures and provisions of permit are hereby established and mutually agreed by the Philippines and the United States to enable properly accredited individuals or concerns to secure access to U.S. bases for the purpose of the planned exploitation of natural resources located thereon, it being recognized that the United States has relinquished all land areas except those essential to the accomplishment of the current military mission, and that the amount of land available for exploitation of natural resources is therefore limited.

A. PRINCIPLES

Principle I: Access to U.S. bases will be consistent with requirements for the security of the bases.

Principle II: Requests for access to U.S. bases will first be submitted to the appropriate Philippine national authority for certification as to the validity of the request and the security and reliability of the applicant.

Principle III: In the interest of safety or security, the U.S. Base Commander may, when he considers it necessary as a result of military operations or training, suspend temporarily, and with as much prior notice as circumstances permit, existing permits for the exploitation of Philippine national resources on that base.

Principle IV: The boundaries of zones established for this purpose on U.S. bases may be revised from time to time to accommodate the requirements of military necessity or to take into account changes in force deployments.

Principle V: The granting of access to U.S. bases for the purpose of exploiting Philippine natural resources shall not be abused by Philippine nationals seeking to establish permanent homesites on U.S. bases.

B. PROCEDURES

1. Establishment of Security Zones: The U.S. Base Commander will establish within his base security zones as appropriate. Zone I will embrace those areas within a base to which access for the purpose of exploitation of natural resources cannot be permitted being necessary for military operations and security or the preservation of essential watershed areas. Zone II will include those portions the base on which natural resources may be exploited, subject to controls required for military operations or the maintenance of security and good order.

2. Notification of Zonal Boundaries: Upon determination of the security zones, the U.S. Base Commander will notify the Joint Military Secretariat of the Philippine-U.S. Mutual Defense Board which will take such steps as are necessary to inform the appropriate Philippine authorities of the boundaries of these zones.

3. Natural Resources Surveys in Zone II: The appropriate Philippine authorities will under the supervision of, and as agreed upon the Philippine-U.S. Mutual Defense Board, conduct surveys of Zone II to determine the availability and importance of the natural resources within this zone. Copies of the reports of these surveys will be made available to the Base Commander and will be placed on file with the Joint Military Secretariat of the Philippine-U.S. Mutual Defense Board.

4. Applications for Access to Zone II Areas: Applications to exploit Philippine natural resources in Zone II will be processed to the Board for approval through the appropriate Philippine national authority on the basis of the authority's determination that the application is deemed valid when reviewed in the light of the official Philippine natural resources surveys referred to in paragraph 3 above. The criteria for approval by the Board of any request pertaining to Zone II areas will be that (1) the number of applications approved for any particular area will not be such as to interfere unduly military operations and (2) that the applicant meets such standards of security and reliability as may be mutually agreed upon, by the two governments in the board. Approved applications will be immediately forwarded to the U.S. Base Commander concerned, and copies placed on file with the Joint Military Secretariat of the Board. If the Board approves, a permit issued by the Philippine Government will be forwarded to the permittee, who will communicate with the Commander of the base concerned for the purpose of obtaining access to the approved area.

5. Responsibility of Applicant to Keep the U.S. Base Commander Informed: It will be the responsibility of the applicant, after he has received properly approved permit, to keep the U.S. Base Commander, through the local Philippine Military Liaison Officer, fully informed of the details of his commercial operations.

C. TERMS AND CONDITIONS OF PERMITS

1. The detailed terms and conditions of permits for exploitation of Philippine natural resources in Zone II areas on U.S. bases will be consistent with standards determined by the Philippine-US Mutual Defense Board.

2. In the interest of guaranteeing at all times the effective military operation of these U.S. bases and to protect the United States from any legal claims which might arise as a result of commercial operations within the boundaries of such bases, the Philippine Government agrees to hold the United States harmless from any liability resulting from any claims for damage which are attributable to such commercial operations on the U.S. base. It is hereby mutually agreed by the two governments that such permits will contain, in addition to such other provisions as may be mutually agreed by the Board, the following:

(a) The permittee agrees not to obstruct, damage or impede any existing U.S. improvements or U.S. construction on the base.

(b) The U.S. reserves the right to terminate operations under a permit on grounds of military necessity, on 30 days notice, (or 48 hours in an emergency).

(c) The U.S. reserves the right to suspend temporarily operations under any permit when in the interest of safety, military operations or training make such suspension of permit necessary.

(d) The permittee agrees not to undertake permanent construction on the U.S. base without receipt of prior approval from the Base Commander.

(e) The permittee agrees not to pollute streams, or water sources as a result of his commercial operations, to conserve water tables, and to prevent the general waste of the country-side.

(f) The permittee and his employees agree to abide by the base regulations pertaining to safety, security and maintenance of order.

(g) The U.S. Base Commander shall have the right to inspect approved commercial operations on his base at any time.

(h) No residential properties shall be constructed by permittees or their personnel on U.S. bases.

(i) In appropriate cases permits shall contain a provision requiring restoration of the premises by the permittee.

(j) Suspension or termination of operations under the. foregoing provisions or the accidental damage to or destruction of natural resources shall not give rise to any liability on the part of the U.S.

D. RESOLUTION OF DISPUTES

Any dispute arising from the implementation of the above shall be referred to the Philippine-US Mutual Defense Board for resolution.

ANNEX 9

TERMS OF REFERENCE OF THE PHILIPPINE MILITARY LIAISON
OFFICER ACCREDITED TO U.S. BASES IN THE PHILIPPINES

1. Assignment and Selection:

A Philippine Military Liaison Officer shall be assigned to the staff of the Base Commander of U.S. Naval Station, Sangley Point; U.S. Naval Base, Subic Bay; Clark Air Base, and such other major U.S. military bases as may be mutually agreed by the Philippine-U.S. Mutual Defense Board. These officers shall be appointed by the Chief of Staff, Armed Forces of the Philippines, and accredited by the Philippine-U.S. Mutual Defense Board to the U.S. Base Commander concerned. I As Philippine military officers, they will continue to be under the administration
of the Chief of Staff, Armed Forces of the Philippines.

2. Duties of the Philippine Military Liaison Officer Assigned to the Staff of the Base Commander of a U.S. Military Base:
On arrival at the base to which assigned, the Philippine Military Liaison Officer shall report to the Base Commander and assist him with specific matters which may arise in connection with those Articles of the Military Bases Agreement of 1947 and of this Supplementary Agreement which provide for joint consultation and cooperation. In doing so he will:

a. Perform normal liaison for the Base Commander.

b. Assist the Base Commander in carrying out the Base Commander's responsibility to assure observance of Philippine laws and regulations which are applicable within the base.

c. Advise the Base Commander concerning problems involving Philippine nationals on the base, and the day-to-day relationship between the Base Commander and such nationals.

d. Be the point of contact between the officials of the national, provincial, and municipal agencies and the base authorities for the purpose of arranging with the Base Commander or his designated representatives for the entry of appropriate Philippine officials when necessary to perform specific tasks in the implementation of such laws and regulations as may be applicable within the base.

e. Assist the Base Commander, as appropriate, in implementing actions of the Philippine-U.S. Mutual Defense Board.

f. Perform such other liaison duties as may be assigned to Mm by the Base Commander.

g. Promote close cooperation, understanding, and harmonious relationships among all concerned.

3. Qualifications of the Philippine Military Liaison Officer:

a. He will be a military officer of field grade, not above the rank of Lieutenant Colonel.

b. He will be persona grata to the Base Commander to whom he is accredited.

c. He will, as a matter of comity, conform with the practices applicable on the base with respect to the U.S. officers of equivalent rank.

4. Reports:

The Philippine Military Liaison Officer will submit his reports to the permanent Philippine-U.S. Defense Board through the Base Commander and the Joint Military Secretariat of that Board.

5. Administrative Support.

The U.S. Base Commander will:

a. Provide a suitable office for the Philippine Military Liaison Officer on the U.S. Base.

b. Provide the Philippine Military Liaison Officer with appropriate clerical and administrative support.



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