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December 06, 1960


AGREEMENT BETWEEN THE REPUBLIC OF THE PHILIPPINES AND THE UNITED STATES OF AMERICA ON THE GRANT OF DEVELOPMENT RIGHTS TO SHIPSIDE, INC. UNDER THE MILITARY BASES AGREEMENT OF 14 MARCH 1947

Note: The Agreement entered into force, December 6, 1960.

THIS AGREEMENT, made and entered into by and between —

THE GOVERNMENT OF THE UNITED STATES OF AMERICA, represented herein by its Ambassador to the Philippines, and the GOVERNMENT OF THE PHILIPPINES, represented herein by its Secretary of Foreign Affairs, hereinafter referred to as GRANTORS,

—and—

SHIPSIDE, INCORPORATED, a Philippine corporation owned and controlled by citizens of the Philippines and the United States, hereinafter referred to as GRANTEE,

WITNESSETH :

WHEREAS, Article XIX of the Military Bases Agreement and Treaty of 1947 between the Republic of the Philippines and the United States of America provides "that the United States shall have the right, with the consent of the Philippines, to grant to commercial concerns owned or controlled by citizens of the Philippines or of the United States such rights to the use of any base or facility retained or acquired by the United States as may be deemed appropriate by both Governments to insure the development and maintenance for defense purposes of said bases and facilities";

WHEREAS, Camp Wallace, San Fernando, La Union, is one of the bases granted to the Government of the United States under said Military Bases Agreement and Treaty of 1947;

WHEREAS, the GRANTEE, a Philippine corporation, owned and controlled by citizens of the Philippines and the United States was organized, according to its Articles of Incorporation, "to engage in the business of handling in bulk of all kinds of materials, products, and supplies capable of being efficiently and expeditiously handled by any type of loading and unloading equipment or by other suitable means; to maintain and operate terminal facilities, terminal warehousing, terminal ways, terminal stations and stores and terminal factory and showroom facilities, including power, light, heat and machinery; to engage in such other ventures and endeavors as may be proper and in keeping with the nature of the business of the Company; and to do any other acts and things relating thereto or connected therewith, all to the extent permitted by the laws of the Philippines";

WHEREAS, the GRANTORS deem it appropriate to grant to the GRANTEE such rights to the use of said base as may be necessary to insure its development and maintenance for defense purposes;

WHEREAS, the GRANTEE Shipside, Incorporated, has offered to construct on said base, at its own expense, harbor and other facilities, in pursuance of the purposes for which it was organized and for the benefits of the parties hereto; and

WHEREAS, the proposal of the GRANTEE is in keeping with the intent of said Article XIX of the Agreement and Treaty hereinbefore referred to,

NOW, THEREFORE:

For and in consideration of the mutual benefits hereinbefore stated and as herein below set forth, the GRANTORS hereby grant unto the GRANTEE development rights over, and the use of, that certain property consisting of the following:

A portion of Camp Wallace, situated in the Barrio of Poro, Municipality of San Fernando, Province of La Union, containing an area of 15.3874 hectares, more specifically described in the attached technical description marked Annex A and shown (the area colored blue) in the plan Annex B, both of which annexes are made a part of this Agreement.

under the following terms and conditions:

1. The term of this grant shall be for a period of twenty-five (25) years, renewable for an additional twenty-five (25) years by agreement of both parties, with the understanding that the GRANTORS would be disposed to renew the contract unless overriding considerations of public interest require otherwise.

2. The GRANTORS shall cooperate with the GRANTEE in the ejectment of squatters and other unauthorized occupants of the premises herein above described.

3. The GRANTEE undertakes, at no expense to the GRANTORS, to
construct pier and wharfage facilities capable of receiving ocean vessels of deep draft and make such other improvements on the premises as it may deem necessary to carry out the business for which it was organized.

4. The GRANTEE agrees to provide, free of any charges, use of any facilities constructed by the GRANTEE, to the Armed Forces of the GRANTORS or to third parties on behalf of the Armed Forces of the GRANTORS provided such use does not interfere with or obstruct the normal operations of the GRANTEE (it being understood that the GRANTEE shall notify the GRANTORS in writing of the exact time and circumstances when such interference occurs so that suitable arrangements may be made as hereinafter provided for) with the express and distinct understanding and agreement that each GRANTOR shall be responsible, during such use, for any and all claims for injury, death, loss or damage to any person or property which may be due to negligence of its agents or employees in the performance of their duties. If the requirements of the Armed Forces of the GRANTORS are such as to interfere with the operations of the GRANTEE, arrangements mutually satisfactory to the GRANTEE and the Military Forces concerned will be made, if and when required.

5. The rights of the GRANTORS to the use of the Camp Wallace Military Reservation for military purposes and for the specific purposes hereinafter described shall not be infringed upon or impaired by this grant, and the rights presently in existence of individuals, companies or corporations, if any, within the described area shall be respected and protected in accordance with the laws of the Republic of the Philippines. The GRANTEE undertakes and agrees that the use of the property hereby granted will not interfere with the United States Air Force and Voice of America operations facilities and installations and that any construction contemplated shall be the subject of prior engineering consultation and agreement between the GRANTORS and the GRANTEE. The GRANTEE will provide adequate rights of way for the existing pipe line and right of way therefor from the Voice of America facility to Poro Pier No. 2 or any replacement thereof. The GRANTEE will not interfere or obstruct in any way the road and right of way leading to the facilities of the GRANTORS from the public highways.

6. Except as stated in Paragraph 4 above, the GRANTORS shall not be liable in any manner for any claim for injury, death, loss, or damage which may occur on or be caused by or otherwise incident to the use of the above-described property during the period of this agreement; and the GRANTEE agrees to indemnify and save harmless the GRANTORS from any and all such liability, damage, cost or expenses, to protect the GRANTORS against any claim, to defend any such claim that may be made or any suit that may be brought against the GRANTORS and to pay all costs and expenses of such protection and defense.

7. The GRANTEE may not sublease any portion of the granted premises for extensive commercial ends and any sublease to be made must be germane to the operation of Shipside, Inc., as authorized by the Primary Purpose of its articles of incorporation and must bear the prior approval of the GRANTORS; but no subletting shall .relieve the GRANTEE of any of its obligations hereunder and any subleasee shall expressly assume, and by reason of such sublease shall be considered as having assumed and become bound by, all of the GRANTEE's obligations hereunder.

8. If the GRANTEE terminates this agreement before the expiration of its term, it shall not remove but shall cede free of cost to the GRANTORS the improvements made by it on the premises.

9. At the end of the term of this Grant, or of the renewal thereof, all buildings, structures and improvements constructed or placed on the property, as described above, by the GRANTEE, all appurtenances thereto owned by the GRANTEE, and all machinery, equipment and fixtures therein owned by the GRANTEE, except articles of personal property which are capable of being removed without injury to the real estate, shall belong to the Republic of the Philippines and shall thereby become automatically the property of the Republic of the Philippines. All such removable articles of personal property, upon such expiration shall be removed by the GRANTEE from the premises within a reasonable time. In the event that after such termination the Republic of the Philippines should decide to lease the property together with the improvements and buildings thereon the GRANTEE shall be given priority in leasing the same under such terms and conditions as may be mutually agreed upon.

10. In the event that either GRANTOR, at any time during the life of this agreement, commandeers the property and wharfage facilities thereon, including all the appurtenances thereto, as authorized by the pertinent laws, the compensation for such commandeering shall be determined by mutual agreement of the parties concerned, but the tenure and/or conditions of this agreement shall not be disturbed or voided in any respect; it being expressly understood and agreed that when the purposes for which such facilities have been commandeered shall cease to exist, then and in such case, the premises shall forthwith be returned by the GRANTORS to the GRANTEE.

11. The area subject to the grant of development rights and the harbour and pier facilities as well as all the improvements thereon may be taken over bv either GRANTOR in case of military necessity for defense purposes, subject to the provisions in Paragraph 10 for compensation, tenure and/or conditions of this agreement, and return.

12. The GRANTORS may, by written notice to the GRANTEE, terminate the right of the GRANTEE to proceed, under this contract, if it is found after notice and hearing by the appropriate authorities of the GRANTORS, that gratuities (in the form of entertainment, gifts or otherwise) were offered or given by the GRANTEE, or any agent or representative of the GRANTEE, to any officer or employee of the GRANTORS with a view towards securing favorable treatment with respect to the awarding or amending, or the making of any determinations with respect to the performing of such contract; provided that the existence of the facts upon which the aforesaid appropriate authorities of the GRANTORS make such findings shall be an issue and may be reviewed by any competent court.

13. If in the course of time improvements introduced in the area for the use and benefit of officers, personnel or dependents of the GRANTEE shall in the view of the GRANTORS present problems arising from normal community life, such as sanitation, drainage, peace and order and others, the GRANTORS reserve the right to exercise the authority normally given in any government in the discharge of its obligations under such conditions.

14. Any improvement introduced in the property shall not be subject during the life of the agreement to any kind of lien or encumbrances without the written consent of the GRANTORS, and the GRANTEE will obligate itself to remove all Hens and encumbrances, if any, at the time of the termination of the agreement.

15. Any notice from the GRANTORS to GRANTEE relating to the granted premises or the occupancy thereof shall be deemed duly served, if sent to the GRANTEE by registered mail, postage prepaid, addressed at its principal office, Dimsco Building, Intramuros, Manila. GRANTEE'S change of address may be effected by written notice to the GRANTORS.

16. It is understood and agreed that neither GRANTOR shall be responsible for any act or omission of the other GRANTOR.

17. The covenants and agreements herein contained shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns.

IN WITNESS WHEREOF, the parties hereto have signed these presents at Manila, Philippines, on this 6th day of December, 1960.

On behalf of the Government of the United States of America

JOHN D. HICKERSON
American Ambassador to the Philippines

SIGNED IN THE PRESENCE OF:

Illegible

On behalf of the Government of the Republic of the Philippines

FELIXBERTO M. SERRANO
Secretary of Foreign Affairs

SIGNED IN THE PRESENCE OF:

Illegible

SHIPSIDE, INCORPORATED

By:

V. E. LEDNICKY
President

SIGNED IN THE PRESENCE OF:

Illegible

TECHNICAL DESCRIPTION

LOT A

A group of connected parcels of land (portion of Camp Wallace Military Reservation), applied for a Grant of Development Rights to Shipside, Incorporated, in accordance with the Treaty concerning Military Bases of 1947 between the governments of the Republic of the Philippines and United States of America;

Situated in Barrio of Poro, Municipality of San Fernando, Province of La Union, Island of Luzon;

Bounded on the North by San Fernando Bay; on the East by private properties; on the South by Poro Point-San Fernando Highway, properties of Standard Vacuum Oil Co., Shell Co. of the Philippines, Ltd., Lepanto Consolidated Mining Co., and unknown persons; and on the West by portion of Camp Wallace Military Reservation.

Beginning at a point marked "1", Lot A of plan, being S. 71° 41' W., 2463.00 M. from B.L.L.M. No. 1. Mp. of San Fernando, La Union; thence

S.
85°
10'
E.,
168.43
meters to point
"2";
thence
S.
88°
16'
E.,
155.04
" " "
"3";
"
S.
27°
20'
W.,
256.00
" " "
"4";
"
S.
84°
19'
W.,
24.31
" " "
"5";
"
N.
00'
E.,
137.00
" " "
"6";
"
N.
84°
00'
W.,
90.00
" " "
"7";
"
N.
06'
E.,
57.38
" " "
"8";
"
N.
59'
E.,
12.65
" " "
"9";
"
N.
01'
E.,
6.00
" " "
"10";
"
N.
79°
08'
W.,
112.04
" " "
"11";
"
S.
11°
10'
W.,
5.94
" " "
"12";
"
S.
10°
21'
W.,
14.08
" " "
"13";
"
S.
10°
19'
W.,
47.75
" " "
"14";
"
S.
74°
00'
E.,
27.60
" " "
"15";
"
S.
00'
W.,
31.00
" " "
"16";
"
N.
89°
00'
W.,
25.00
" " "
"17";
"
N.
12'
E.,
37.97
" " "
"18";
"
N.
28'
W.,
48.04
" " "
"19";
"
N.
86°
23'
W.,
33.59
" " "
"20";
"
N.
86°
23'
W.,
64.60
" " "
"21";
"
S.
12°
45'
W.,
34.00
" " "
"22";
"
S.
12°
45'
W.,
126.00
" " "
"23";
"
N.
82°
00'
E.,
42.00
" " "
"24";
"
N.
10°
13'
E.,
23.92
" " "
"25";
"
N.
10°
13'
E.,
44.08
" " "
"26";
"
N.
79°
00'
E.,
28.00
" " "
"27";
"
N.
14°
10'
E.,
51.00
" " "
"28";
"
S.
76°
01'
E.,
5.70
" " "
"29";
"
S.
36'
W.,
49.31
" " "
"30";
"
S.
37°
00'
W.,
38.20
" " "
"31";
"
S.
56°
00'
W.,
30.78
" " "
"32";
"
S.
17°
10'
E.,
42.00
" " "
"33";
"
S.
75°
10'
E.,
33.20
" " "
"34";
"
S O U T H


,
4.50
" " "
"35";
"
N.
76°
07'
W.,
103.33
" " "
"36";
"
N.
30'
E.,
56.30
" " "
"37";
"
N.
25°
30'
E.,
73.00
" " "
"38";
"
N.
70°
00'
W.,
105.00
" " "
"39";
"
S.
14°
00'
W.,
26.00
" " "
"40";
"
S.
85°
00'
W.,
12.00
" " "
"41";
"
S.
00'
W.,
52.00
" " "
"42";
"
S.
59°
00'
E.,
30.00
" " "
"43";
"
S.
00'
W.,
50.00
" " "
"44";
"
N.
73°
34'
W.,
11.03
" " "
"45"';
"
N.
47°
50'
W.,
77.00
" " "
"46";
"
N.
76°
00'
E.,
11.00
" " "
"47";
"
N O R T H


,
73.00
" " "
"48";
"
S.
77°
57'
W.,
66.70
" " "
"49";
"
N.
47°
50'
W.,
77.00
" " "
"50";
"
N O R T H


,
5.00
" " "
"51";
"
S.
48°
59'
W.,
12.95
" " "
"52";
"
N.
47°
50'
W.,
53.00
" " "
"53";
"
S.
88°
00'
E.,
38.00
" " "
"54";
"
S.
57°
30'
E.,
33.00
" " "
"55";
"
S.
87°
00'
E.,
45.00
" " "
"56";
"
N.
30'
E.,
35.00
" " "
"57";
"
S.
81°
00'
W.,
46.00
" " "
"58";
"
N.
30'
E.,
34.00
" " "
"59";
"
S.
76°
30'
W.,
34.00
" " "
"60";
"
N.
00'
W.,
12.00
" " "
"61";
"
S.
84°
30'
W.,
48.00
" " "
"62";
"
N.
23°
00'
E.,
28.00
" " "
"63";
"
N.
66°
45'
E.,
24.10
" " "
"64";
"
N.
53°
00'
W.,
8.00
" " "
"65";
"
N.
78°
30'
W.,
8.00
" " "
"66";
"
N.
23°
00'
W.,
19.00
" " "
"67";
"
E A S T


,
29.00
" " "
"68";
"
N.
05'
W.,
38.69
" " "
"69";
"
W E S T


,
44.00
" " "
"70";
"
N.
23°
00'
W.,
80.00
" " "
"71";
"
N.
62°
00'
E.,
14.00
" " "
"72";
"
N.
16°
00'
W.,
49.00
" " "
"73";
"
N.
78°
00'
E.,
161.50
" " "
"74";
"
S.
15°
20'
E.,
153.50
" " "
"75";
"
S.
34°
09'
E.,
105.54
" " "
"76";
"
S.
63°
56'
E.,
172.47
" " "
,"77";
"
S.
78°
48'
E.,
138.77
" " "
of beginning.

Bearings true;
             

Containing an area of NINETY NINE THOUSAND AND TWO SQUARE METERS (99,002), more or less, excluding scattered and supposed private properties within this bounded area.

Prepared: September 10, 1959. By

ARSENIO VILLALUZ
Private Land Surveyor

Annex 'A'

TECHNICAL DESCRIPTION

LOT B

A parcel of land (portion of Camp Wallace Military Reservation), applied for a Grant of Development Rights to Shipside, Incorporated, in accordance with the Treaty concerning Military Bases of 1947 between the governments of the Republic of the Philippines and the United States of America;

Situated in Barrio of Poro, Municipality of San Fernando, Province of La Union, Island of Luzon;

Bounded on the North by Poro Point—San Fernando Highway, properties of Shell Company of the Philippines, Ltd., Standard Vacuum Oil Co., and unknown persons; on the East by private properties; on the South by Lingayen Gulf; and West by portion of Camp Wallace Military Reservation and private property of unknown person.

Beginning at a point marked "1", Lot B of plan, being S. 61° 41' W., 2528.00 meters from B.L.L-M. No. 1, Mp. of San Fernando, La Union; thence

N.
57°
21'
W.,
178.420
meters to point
"2";
thence
N.
68°
37'
W.,
191.81
" " "
"3";
"
N.
87°
54'
W.,
161.33
" " "
"4";
"
N.
24°
09'
W.,
38.02
" " "
"5";
"
N.
14°
19'
W.,
48.00
" " "
"6";
"
N.
88°
56'
E.,
31.50
" " "
"7";
"
S.
84°
29'
E.,
5.00
" " "
"8";
"
S.
10°
29'
E.,
30.45
" " "
"9";
"
N.
72°
30'
E.,
52.32
" " "
"10";
"
S.
02'
E.,
14.00
" " "
"11";
"
S.
88°
45'
E.,
50.00
" " "
"12";
"
N.
15'
W.,
20.45
" " "
"13";
"
N.
84°
23'
E.,
68.11
" " "
"14";
"
S.
75°
25'
E.,
210.50
" " "
"15";
"
S.
35'
W.,
23.00
" " "
"16";
"
S.
75°
00'
E.,
90.00
" " "
"17";
"
S.
82°
40'
E.,
88.80
" " "
"18";
"
N.
20'
E.,
12.05
" " "
"19";
"
S.
77°
10'
E.,
11.00
" " "
"20";
"

S.

27°
20'
W.,
169.00
" " "
of beginning.

Bearings true;







Containing an area of FIFTY FOUR THOUSAND TWO HUNDRED THIRTY ONE (54,231) SQUARE METERS, more or less.

Prepared: September 10, 1959. By

ARSENIO VILLALUZ
Private Land Surveyor

Annex 'A'

TECHNICAL DESCRIPTION

LOT C

A parcel of land (portion of Camp Wallace Military Reservation), applied for a Grant of Development Rights to Shipside Incorporated, in accordance with the Treaty concerning Military Bases of 1947 between the governments of the Republic of the Philippines and United States of America;

Situated in Barrio of Poro, Municipality of San Fernando, Province of La Union, Island of Luzon;

Bounded on the North by private property of unknown person; on the East by property of the Shell Company of the Philippines, Ltd., on the South by Poro Point—San Fernando Highway; and West by private property of unknown person.

Beginning at a point marked "1", Lot C of plan, being S. 67° 36' W., 2568.06 meters from BX-L.M. No. 1, Mp. of San Fernando, La Union; thence

N.
62°
53'
E.,
13.50
meters to point
"2";
thence
N.
70°
08'
E.,
35.00
" " "
"3";
"
S.
38'
W.,
29.00
" " "
"4";
"
N.
75°
24'
W.,
42.46
" " "
of beginning.

Bearings true;






Containing an area of SIX HUNDRED FORTY ONE (641) SQUARE METERS, more or less.

Prepared: September 10, 1959. By

ARSENIO VILLALUZ
Private Land Surveyor



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