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May 30, 1969

Note: Entered into force, May 30, 1969.

Reference: This Agreement is also published in VIII DFA TS No. 1, p. 61.

THE GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES and the GOVERNMENT OF THE REPUBLIC OF INDONESIA, desirous of promoting and expanding economic and technical cooperation between Indonesia and the Philippines and with reference to the JOINT COMMUNIQUE of PRESIDENT MARCOS and PRESIDENT SOEHARTO on January 14th, 1968, to improve and strengthen the economic, social and cultural cooperation between two countries have agreed as follows:

ARTICLE I

The two Governments shall promote economic and technical cooperation between their two countries within the framework of their laws, regulations, policies and international commitments. This objective shall be pursued to the fullest extent that the physical, manpower and financial resources of both countries shall permit.

ARTICLE II

Both Governments shall explore the feasibility of and strive to promote the expansion of trade between the two countries; coordination and harmonization, by mutual agreement on a case-to-case basis, of their economic plans and policies; coordination and joint action on the production and marketing of specific commodities to be identified by mutual agreement; mutual assistance and cooperation on education and training; coordination of policies on transportation, communications, and other infrastructure facilities; the promotion of scientific and technical cooperation; the promotion of joint ventures; and other activities of mutual benefit to both countries. In addition, both governments shall explore the possibility of improving payments arrangements between the two countries.

ARTICLE III

The Contracting Parties agree to grant each other no less favourable treatment in trade, investments, and other economic activities between the two countries than that applying to any other country.

The provision of this Article shall not apply to:

a. the preferences or advantages existing as of the date of this Agreement accorded by the Government of the Republic of the Philippines to any country or accorded by that Government in replacement of such existing preferences or advantages;

b. the preferences or advantages existing as of the date of this Agreement accorded by the Government of the Republic of the Philippines to any country or accorded by that Government in replacement of such existing preferences or advantages;

c. the preferences which either of the two countries grant or may grant to facilitate frontier traffic; and

d. the advantages resulting from a customs union which either of the two Governments have previously concluded or may conclude, or resulting from a free exchange system as in a free trade area.

ARTICLE IV

To implement this Basic Agreement, both Governments agree to negotiate specific supplementary agreements which shall be annexed hereto and shall form integral parts hereof.

ARTICLE V

The Department of Commerce and Industry in Manila and the Depart­ment of Trade in Djakarta shall serve as the liaison and coordinating centers of both governments for the implementation of this Basic Agreement An Indonesian-Philippine Commission on Economic and Technical Cooperation, composed of representatives to be designated from appropriate depart­ments by both Governments, shall meet regularly once a year either in Djakarta or Manila to review the implementation of this Agreement, to pro­pose possible amendments hereto, and to discuss and formulate proposals and guidelines for future agreements and joint measures. Special meetings of the Commission may also be held upon mutual agreement of both governments.

ARTICLE VI

The provisions of this Agreement shall be effective on the date of execution of this Agreement. Either government may terminate this Agreement by giving at least one year's prior written notice to the other government.

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