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May 03, 1990

WHEREAS, commencing October 1, 1981, the Republic of the Philippines assumed full responsibility for the hospital and medical care and treatment of all Commonwealth Army veterans and new Philippine Scout veterans, and

WHEREAS, the United States of America is desirous of assisting the Republic of the Philippines in maintaining high quality medical care and treatment at the Veterans Memorial Medical Center, and

WHEREAS, the Republic of the Philippines is desirous of continuing the operations of the United States Department of Veterans Affairs in the Philippines and for providing medical care and grants for the purpose of replacement and upgrading of equipment and rehabilitation of the physical plant of the Veterans Memorial Medical Center.

The Republic of the Philippines and the United States of America have decided to conclude a new Agreement for the above purposes, and do hereby agree as follows:

ARTICLE 1
  PURPOSES OF CONTRACT

1. Subject to mutual agreement, the necessary authorization and appropriation acts of the United States Congress, and such rules and regulations as. from time to time, may be prescribed by the Secretary of Veterans Affairs of the United States, to whom the President of the United States has delegated the authority conferred upon him by Sections 631-633, Title 38, United States Code, the Secretary of Veterans Affairs of the United States or his designee, shall enter into a contract with the Secretary of National Defense of the Republic of the Philippines or his designee, as follows:

(a) To provide reimbursement to the Republic of the Philippines by the United States of America for hospital care in the Republic of the Philippines of United States veterans determined by the Secretary of Veterans Affairs of the United States to be in need of such hospital care for service-connected disabilities, at a per diem rate to be jointly determined for each fiscal year by the two Governments to be fair and reasonable;

(b) To provide reimbursement as described in (a) above for hospital care at the Veterans Memorial Medical Center of United States veterans determined by the Secretary" of Veterans Affairs of the United States to be in need of such hospital care for nonservice-connected disabilities if they are unable to defray the expenses of such care;

(c) To provide reimbursement for medical services in the Republic of the Philippines for United States veterans determined by the Secretary of Veterans Affairs of the United States to be in need of such medical services for service-connected disabilities which shall be provided either in the Veterans Memorial Medical Center or by contract, the rates to be jointly determined for each fiscal year by the two Governments to be fair and reasonable;

(d) To provide reimbursement for nursing home care in the Republic of the Philippines for any United States veteran who has been furnished hospital care and who has been determined by the Secretary of Veterans Affairs of the United States to be in need of such nursing home care at a per diem rate to be jointly determined for each fiscal year by the two Governments to be fair and reasonable but in no event to exceed 50 per centum of the per diem rate established pursuant to (a) above;

(e) To provide that the contract shall remain in force until September 30, 1990, unless extended by the agreement of both parties;

(f) To provide that during the contract period specified in this article, subject to actual agreement of the officials designated to execute such actions, payments for hospital care and for medical services provided to United States veterans may consist in whole or in part of available medicines, medical supplies, and equipment furnished by the Secretary of Veterans Affairs of the United States to the Veterans Memorial Medical Center at valuations therefor as determined by the Secretary of Veterans Affairs of the United States, provided the valuations so determined shall not be less than the cost of the items furnished, including transportation;

(g) To provide that during the period covered by such contract, the Republic of the Philippines, through the Veterans Memorial Medical Center, shall replace and upgrade, as needed, the equipment of such hospital and shall rehabilitate the existing physical plant and facilities of such hospital as soon as practicable to place the hospital on a sound and effective operating basis;

(h) To provide for grants by the Secretary of Veterans Affairs of the United States, on such terms and conditions as he may prescribe, to the Veterans Memorial Medical Center to assist the Republic of the Philippines in the replacement and upgrading of equipment and in rehabilitating the physical plant and facilities of such hospital, which shall not exceed the amounts provided by the appropriation acts of the Congress of the United States for that purpose during the period beginning October 1, 1989, and ending September 30, 1990.

ARTICLE II
  DELEGATION OF AUTHORITY

The Secretary of National Defense of the Philippine Government, under the general direction of the President of the Republic of the Philippines, shall have full authority to administer for the Government of the Republic of the Philippines all matters relating to the provision of medical care and treatment for United States veterans, for replacement and upgrading of equipment and for rehabilitating the physical plant of the Veterans Memorial Medical Center.

ARTICLE III
USE OF FACILITIES OF THE VETERANS MEMORIAL MEDICAL CENTER

1. As previously agreed between the two Governments, the ownership of the Veterans Memorial Medical Center and the equipment thereof has been vested in the Government of the Philippines. The use to which said hospital or any part or equipment thereof shall be devoted is for determination by mutual consent of the two Governments.

2. Use by the Republic of the Philippines of the facilities of the Veterans Memorial Medical Center shall be discretionary with the Republic of the Philippines except that

(a) First priority of admission and retention in the hospital shall be accorded Commonwealth Army veterans and new Philippine Scouts needing hospital care for service-connected disabilities associated with and aggravating service-connected disabilities.

(b) Second priority shall be accorded United States veterans who require hospital care for service-connected disabilities or nonservice-connected disabilities associated with and aggravating service-connected disabilities

(c) Third priority shall be accorded Commonwealth Army veterans. New Philippine Scouts who served under Section 14 of the Armed Forces Voluntary Act of 194S, who enlisted before July 4, 1946, and who were discharged or released from such service under conditions other than dishonorable, and United States veterans with "wartime" service who need hospital care for nonservice-connected disabilities.

ARTICLE IV
  OTHER PROVISIONS

1. The Secretary of National Defense of the Republic of the Philippines shall, with the concurrence of the Secretary of Veterans Affairs of the United States, cause such printed forms of applications for hospitalization, nursing home care, and outpatient treatment, forms of physical examination reports, forms for billing for services rendered and such other forms and notices as may be necessary and incident to the efficient execution of this program to be prepared, and such approved forms will be used whenever applicable to the general operations of such program.

2. The Secretary of National Defense of the Philippines or his designee shall furnish the Secretary of Veterans Affairs of the United States, upon his request, or the request of any officer duly designated by him for such purpose, full and complete cost accounting information, copies of medical examination and treatment reports and any other information deemed by him to be necessary and incident to the proper application of the terms of this Agreement.

3. The United States of America, through such qualified persons as the Secretary of Veterans Affairs of the United States may designate, shall have the right to inspect any hospital in which veterans are being hospitalized or any nursing home care facility in which veterans are being provided nursing home care under the terms of this Agreement, to inspect and audit its books and all accounts as are incident to the proper determination of cost of the reimbursement, on a per diem basis, for such hospitalization or nursing home care and to determine whether the hospital and nursing home care facilities, procedures, techniques, and standards, as well as the quality of subsistence furnished, are adequate and proportionate to the charges being made therefor.

4. Appropriations for grants to the Veterans Memorial Medical Center to assist the Republic of the Philippines in the replacement and upgrading of equipment and in rehabilitating the physical plant and facilities of such hospital, if unobligated, will revert to the United States Treasury at the end of each fiscal year, unless otherwise authorized by applicable appropriation statue.

5. It is agreed between the two Governments that if the conditions and terms of the Agreement are not being met, the Secretary of National Defense of the Philippines or his designee and the Secretary of Veterans Affairs of the United States or his designee shall enter into immediate consultation with a view to ensuring compliance with said terms and conditions. The initiation of such consultations by either Government shall not limit or qualify the duty and obligation of the Secretary of Veterans Affairs of the United States to withhold or suspend payments when, in his judgment, such payments would not be in accordance with the terms of this Agreement.

6. It is agreed between the two Governments that the program under this Agreement, including the contract referred to in Article 1, shall be effective from the date specified in such contract.

7. (a) This agreement shall be deemed to have entered into force on October 1, 1989, and shall remain in force until September 30, 1990.

(b) Either party may at any time request the revision of any article of this agreement.

8. The Republic of the Philippines shall save harmless all officers and employees of the United States Department of Veterans Affairs from damage suits or other civil and criminal actions arising out of the performance of their official duties.

9. The Government of the Philippines agrees that the United States Department of Veterans Affairs shall continue to discharge the responsibilities of the United States Government in the Philippines under this Agreement and the Government of the Philippines shall consider the United States Department of Veterans Affairs and its personnel as part of the Diplomatic Mission of the United States of America for the purpose of enjoying privileges and immunities accorded to that Mission and its personnel of comparable rank.

10. The obligation of the United States to make grants and payments under this agreement is, for any fiscal year, subject to the appropriation of funds by the United States Congress.

IN WITNESS WHEREOF, the undersigned, duly authorized thereto, have signed this Agreement in duplicate, in the City of Manila, this ___3rd___ day of May 1990.