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November 08, 2004

The Department of National Defense of the Republic of the Philippines (hereinafter referred to as "the Philippine side") and the Ministry of National Defense of the People's Republic of China (hereinafter referred to as "the Chinese side") with a view to further developing the friendly cooperative relations between the peoples and armed forces of the countries, subject to existing international agreements entered into by the respective parties, have, through friendly consultations, reached the following agreement on China's provision of military aid gratis to the Philippines.

ARTICLE 1

The Chinese side decides to provide the Philippine side with military aid gratis to the value of 10,000,000 RMB yuan (say Ten Million RMB yuan only). The two sides shall hold further discussions to determine the descriptions and quantities of the said military aid and sign a protocol, which shall form an integral part of the present Agreement.

ARTICLE 2

The Chinese side agrees to ship the above-mentioned military goods to the Philippine Port. Both sides shall designate their respective representatives for the hand—over. The Chinese side shall bear all the expenses required for the transportation of the said goods from China to the Port, and the Philippine side shall be responsible for all the expenses incurred after the arrival of the said goods at the Port.

ARTICLE 3

This Agreement shall enter into force upon written notification by the Parties, through diplomatic channels, indicating that their respective internal legal requirements for its entry into force have been fulfilled. Both sides shall fulfill all their respective obligations under this Agreement within a period of 5 years from its entry into force, as stipulated in this Agreement.

Done in duplicate in both English language and Chinese language, this Agreement is signed on November 8th, 2004 in Beijing, both texts being equally authentic.