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May 30, 1969

Note: The agreement entered into force provisionally, May 30, 1969.

Reference: This Agreement is also published in VIII DFA TS No. 1, p. 70.

THE GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES and the GOVERNMENT OF THE REPUBLIC OF INDONESIA;

INSPIRED by a common desire to further strengthen their traditional ties and friendship;

CONCERNED with the urgent need to accelerate and enhance the economic development of their respective countries;

RECOGNIZING that the Philippines and Indonesia are major producers and exporters of coconut and coconut products;

REALIZING that joint action between the two countries within the framework of the ASIAN COCONUT COMMUNITY and in concert with its members will hasten the development of the coconut industries in member countries.

CONVINCED that the present world situation and future outlook for the coconut industry call for immediate joint action on the part of coconut produc­ing countries;

HAVE RESOLVED to take cooperative action within the framework of the BASIC AGREEMENT ON ECONOMIC AND TECHNICAL COOPERATION between the two countries, subject to the laws, rules and regulations of each country, and therefore agreed as follows:

ARTICLE I

The Government of the Republic of the Philippines and the Government of the Republic of Indonesia hereby commit their full support to the Asian Coconut Community and to its objectives and programs. Accordingly, the principles and activities enumerated in this Agreement shall be carried out within the framework of the Asian Coconut Community and in concert with its member countries, with a view to furthering the Community's objectives and projects.

Within this framework, both Governments shall take measures to assist each other in the development of their coconut industries and shall take joint and concerted action whenever possible in the marketing of their coconut products in world trade as specified in the following Articles of this Agreement.

ARTICLE II

Both Governments shall establish joint programs designed to solve com­mon problems affecting coconut production. Such programs shall be aimed at lowering costs of production, increasing productivity, controlling and eliminating coconut pests and diseases, improving quality, and in other ways improving and rationalizing coconut production in both countries.

Both Governments shall take coordinated action to the fullest extent possible to establish and develop coconut processing industries where they do not exist, to assist each other in the improvement of such industries where they now exist, and to promote diversification of these industries.

Both Governments shall assist each other in the establishment and development of industries that will utilize or seek new ways of, utilizing coconut by-products.

ARTICLE III

The Governments of the Republic of the Philippines and the Republic of Indonesia hereby agree that joint and concerted action in the marketing of their coconut products within the framework, and whenever possible in concert with the members of the Asian Coconut Community, will result in their mutual benefit and therefore agree further that they shall take such action wherever possible.

Joint action shall be taken by both Governments against the imposition of restrictions, trade barriers, and other practices that adversely affect the market for coconut products of the two countries.

Consultations between the two Governments shall be held regularly on floor prices for coconut products in the world market and on possible ways of improving the terms of trade for such products.

Both Governments shall strive to assist each other in the improvement of storage and warehousing facilities for coconut and coconut products, establishing common facilities wherever it is of mutual benefit.

Both Governments shall cooperate in facilitating the improvement and development of transport facilities for coconut and coconut products. In this connection, both Governments shall take joint action to secure the most favor­able freight rates and terms for copra, coconut oil and other coconut products giving priority to the use of national flag vessels of each Country.

ARTICLE IV

Both Governments shall strive to promote, wherever possible, joint programs and action on scientific, technological, and economic research on coconut including, among others, the production, processing, marketing, and technical aspects thereof.

Both Governments shall endeavour to establish education, training and exchange programmes for coconut experts, researchers and trainees.

Both Governments shall take joint action on the compilation and dissemi­nation of information pertinent to the coconut industry.

ARTICLE V

The implementing actions set forth in this Agreement shall be carried out wherever necessary through contracts or separate agreements concluded be­tween appropriate Philippine and Indonesian entities, both public and private, in which the scope and terms of mutual rights and obligations shall be established within the framework of the Asian Coconut Community.

ARTICLE VI

In accordance with the provisions of the Basic Agreements on Economic and Technical Cooperation between the two countries, the governments of the Republic of Indonesia and the Republic of the Philippines shall respectively designate the Department of Commerce and Industry in Manila and the Ministry of Trade in Djakarta to serve as the coordinating and liaison agencies of each government with respect to the implementation of this Agreement

ARTICLE VII

This Agreement shall come into force provisionally on the day of its signing. It will definitely come into force after an exchange of notes to that effect between the two Governments and shall remain in force for a period of one year following the exchange of notes.

This Agreement shall be automatically extended from year to year unless either of the contracting parties gives written notice of its intention to terminate this Agreement six months before the expiration date.

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

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