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May 30, 1969

NOTE: The Agreement entered into force, May 30, 1969.

Reference: This Agreement is also published in VIII DFA TS No. 1, p. 79.

Pursuant to Articles II, IV and V of the "BASIC AGREEMENT ON ECONOMIC AND TECHNICAL COOPERATION BETWEEN THE GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES AND THE GOVERNMENT OF THE REPUBLIC OF INDONESIA," and in accordance with Article 5 of the "TRADE AGREEMENT BETWEEN THE REPUBLIC OF THE PHILIPPINES AND THE REPUBLIC OF INDONESIA," both signed in Manila on the 30th day of may 1969, the GOVERNMENTS OF THE REPUBLIC OF THE PHILIPPINES and the REPUBLIC OF INDONESIA have agreed as follows:

ARTICLE 1

Both Governments shall undertake measures to insure that the transport of import and export commodities to and from each other's country shall, whenever possible, be done by commercial flag vessels of the Republic of the Philippines and the Republic of Indonesia. Both Governments shall take steps to encourage their respective shipping companies, associations and organizations including shipper's councils, to conclude such agreements among themselves as may be necessary to implement the above objective. These agreements shall cover such matters as allocation and sharing of car­goes, freight rates, schedules, and other aspects of sea transportation.

ARTICLE 2

Merchant vessels as mentioned in the above Article 1, while calling at the ports of the other country, shall enjoy treatment no less favorable than that accorded by their respective laws, rules and regulations to vessels under the flag of any third country.

ARTICLE 3

In serving the trade between the two countries, both Governments shall encourage their respective shipping lines participating in the trade to provide adequate capacity and frequency on a regular basis to meet the demand for sea transport.

ARTICLE 4

Both Governments shall take positive measures to encourage cooperation and assistance arrangements in respect of the technical and managerial aspects of ship operations and maintenance, including port administration.

ARTICLE 5

In order to facilitate the implementation of this Agreement, both Governments agree to consult each other in respect of any matter arising from or in connection with this Agreement.

ARTICLE 6

Any alteration, modification, or amendment to this Agreement shall be mutually agreed upon by both Governments based on principles of equity and in accordance with the spirit of this Agreement.

ARTICLE 7

The provisions set forth in this Agreement shall be effective upon signa­ture by the authorized representatives of the two Governments, subject to existing laws and regulations in force in either country, and shall remain in effect for a period of two years and thereafter for successive two year periods, unless otherwise terminated by either Government upon at least six-months notice in writing to the Other; Provided, however, that such notice of termination shall not be made until after the expiration of the first two-year period of effectivity of this Agreement.

IN WITNESS WHEREOF, the undersigned representatives, duly authorized by their respective Governments, have signed this Agreement.

DONE and signed in two original copies, each in the English language, both being equally authentic, in the City of Manila on the 30th day of May 1969.