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February 20, 2004

The Government of the Italian Republic and the Government of the Republic of the Philippines, hereinafter referred to as the Contracting Parties:

Confirming their commitment to the Charter of the United Nations;

Desiring to enhance cooperation between their Department/Ministry of Defence;

Convinced that bilateral cooperation will foster greater understanding of military concerns and enhance defense capabilities.

have agreed on the following:

ARTICLE 1
SCOPE OF COOPERATION

The Contracting Parties will operate in concert and in accordance with their respective laws and international commitments in order to encourage, facilitate and develop cooperation in the field of defense and military, on a mutual basis.

ARTICLE 2
MANAGEMENT OF COOPERATION

The Ministry of Defence of the Italian Republic and the Department of National Defense of the Republic of the Philippines will appoint a joint Defense Cooperation Committee to organize the conduct of concrete cooperation activities in the field of defense and military.

Possible consultations of the Contracting Parties' representatives will be conducted alternatively in Rome and Manila in order to draw up and agree, if advisable and subject to bilateral approval, possible specific arrangements to supplement and complete this MOU, as well as possible cooperation programmes between the Armed Forces of the Italian Republic and the Armed Forces of the Republic of the Philippines.

Activities, modalities, times and places will be specified in the above-mentioned programmes.

ARTICLE 3
AREAS OF COOPERATION

Cooperation between the Contracting Parties will take place, among others, in the following sectors:

Defense security and policy;

Defense industry and procurement policy which is subordinated by the Ministries of Defense;

Defense logistics;

Peacekeeping and humanitarian operations;

Compliance with international treaties on defense, security and arms control;

Armed forces organization, structure and equipment of military units, personnel management;

Formation/training;

Military police issues

ARTICLE 4
GENERAL ACTIVITIES

Cooperation between the Contracting Parties will develop as follows:

Meetings of the Ministers of Defense, Commanders in Chief, National Armaments Directors or corresponding Authorities, their deputies and other officials authorized by the Contracting Parties;

Exchange of experiences between the experts of the two Contracting Parties;

Organization and implementation of cross training activities;

Participation of observers in military exercise with consent of both parties;

Contacts between similar military institutions;

Discussions, consultations, meetings and participation in symposiums, conferences and courses;

Visits to military ships, aircraft and other structures;

Exchange of information and educational publications;

Exchange of information and experiences on logistics; and

Exchange of information and experiences on environmental issues.

ARTICLE 5
TRANSFER OF MATERIALS AND TECHNOLOGY

The Contracting Parties, subject to national laws and regulations, will allow the transfer of defense materials and technologies between the two countries.

ARTICLE 6
FUNDING PROCEDURES

The Contracting Parties will bear the costs of the implementation of this MOU and the possible cooperation, based on reciprocity principles.

The Sending Party will pay the traveling expenses, the salary costs, as well as accident insurance and any other allowance due under their own regulation of its own personnel.

The Receiving Party will pay for local transportation, from the established point of entry into its own territory, room and board expenses, if available in military facilities, as well as planned activities.

The respective laws of the Contracting Parties will regulate medical assistance and relevant expenses on the territory. In particular:

The Receiving Party will provide emergency medical treatment;

The Sending Party will pay health insurance, in addition to the expenses for repatriation of its own sick personnel.

This general principle of reciprocity will not be applicable to groups larger than 10 persons. Funding procedures relevant to these groups will be established on a case-by-case basis by mutual agreement between the Contracting Parties.

As regards the attendance of courses by military or civilian personnel, financial and medical aspects as well as detailed implementing procedures for any specific form of cooperation will be regulated by ad-hoc Agreements to be concluded between the Contracting Parties in accordance with existing laws of the two countries.

Should one of the Contracting Parties send a delegation outside framework of this MOU the Contracting Party concerned will pay all the relevant expenses.

ARTICLE 7
DAMAGES AND COMPENSATION

Compensation for any damage caused by military personnel during or in connection with their mission/exercise will be paid by the Sending Party.

If the damage was caused to military personnel, equipment and infrastructure, any disputes between the Contracting Parties and compensation for damages will be settled by mutual agreement.

ARTICLE 8
EXCHANGE OF INFORMATION

The information exchanged under this MOU shall be handled in accordance with the national rules of the Originating Contracting Party.

Each Contracting Party shall afford all the classified materials, projects, designs, technical specification and any other information, received under this MOU, no lower degree of security protection than that assigned by the Originating Contracting Party and shall take all the necessary measures to keep them classified as long as requested by the Originating Contracting Party.

Classified information, document and/or material means any support containing classified information and any communication made in any circumstances and by any means containing such information.

The corresponding degrees of security classification used by the Contracting Parties are:

The Contracting Parties shall ensure that the documents, materials and technologies exchanged under this MOU shall be used only for the purposes specifically agreed by the Contracting Parties and within the scope of this MOU. The transfer to third parties of information, documents, technical data and defense materials and equipment, whether classified or unclassified, acquired within the cooperation deriving from this MOU, shall be subject to prior written approval by the Government which originated them, unless differently agreed by the Contracting Parties.

Should classified information be exchanged under this MOU between Industries and/or Agencies other than the implementing agencies, separate arrangements shall be developed by the responsible authorities of the two Parties. During negotiations for such arrangements, the security measures mentioned in this MOU shall also be applied to the classified information exchanged during contractual negotiations.

ARTICLE 9
SETTLEMENT OF DISPUTES

Should any dispute arise in connection with the interpretation or application of this MOU, the Contracting Parties shall settle the disputes by bilateral negotiation or consultation and if necessary, through diplomatic channels.

ARTICLE 10
RATIFICATION AND AMENDMENTS

This MOU shall enter into force upon the date of reception of the second of the two notifications by which the Contracting Parties shall inform officially each other that the respective ratification procedures have been fulfilled.

This MOU may be amended, at any time, through Official Notes. Any modification shall come into effect following the same procedures as those set for the MOU itself.

This MOU established to be in force for five years, will be automatically extended for five years again unless written notice of intention to denounce is given by either Contracting Party to the other, in this case it will lose effect six months after such a notification has been received.

In case of denunciation, the Contracting Parties shall make every effort to complete unfinished activities and shall begin consultations in order to resolve contentious issues.

In witness whereof, the undersigned representatives, duly authorized by respective authorities, have signed this MOU.

Done at Manila on Feb. 20, 2004 In two originals, each in the Italian and English languages, all texts being equally authentic. In case of any divergence on interpretation, the English text shall prevail.