I have the honour to refer to the recent discussions held between the
representatives of the Government of Japan and of the Government of the
Republic of the Philippines concerning Japanese economic cooperation to
be extended with a view to strengthening friendly and cooperative
relations between the two countries, and to propose on behalf of the
Government of Japan the following arrangements:
1. For the purpose of contributing to the establishment of
the Philippine Institute of Pure and Applied Chemistry (hereinafter
referred to as the "Institute") by the Government of the Republic of the
Philippines, the Government of Japan will extend to the Government of
the Republic of the Philippines in accordance with the relevant laws and
regulations of Japan, a grant up to one billion yen (¥1,000,000,000)
(hereinafter referred to as "the Grant").
2. The Grant will be made available during the period between the date
of coming into force of the present arrangements and September 30, 1983,
unless the period is extended by mutual agreement between the
authorities concerned of the two Governments.
3. (l) The Grant will be used by the Government of the Republic of the
Philippines properly and exclusively for the purchase of the products of
Japan or the Philippines and the services of Japanese or Philippine
nationals listed below: (The term nationals whenever used in the present
arrangements means Japanese physical persons or Japanese juridical
persons controlled by Japanese physical persons in the case of Japanese
nationals, and Philippine physical or juridical persons in the case of
Philippine nationals.)
(a) products and services necessary for the construction of
the main building and supplementary facilities of the Institute
(hereinafter jointly referred to as "the Facilities of the Institute");
(b) equipment necessary for the Facilities of the Institute and services
necessary for the installation of the equipment therein; and
(c) services necessary for the transportation of the products referred
to in (a) and (b) above to the Republic of the Philippines, including
those for internal transportation therein.
(2) Notwithstanding the provisions of sub-paragraph (l) above, when the
two Governments deem it necessary, the Grant may be used for the
purchase of the products of the kind mentioned in (a) and (b) of
sub-paragraph (l) above, which are products of countries other than
Japan or the Philippines and the services of the kind mentioned in (b)
of sub-paragraph (l) above, which are services of nationals of countries
other than Japan or the Philippines.
4. The Government of the Republic of the Philippines or its designated
authority will enter into contracts in Japanese yen with Japanese
nationals for the purchase of the products and services referred to in
paragraph 3. Such contracts shall be verified by the Government of Japan
to be eligible for the Grant.
5. (l) The Government of Japan will execute the Grant by making payments
in Japanese yen to cover the obligations incurred by the Government of
the Republic of the Philippines or its designated authority under the
contracts verified in accordance with the provisions of paragraph 4
(hereinafter referred to as "the Verified Contracts") to an account to
be opened in the name of the Government of the Republic of the
Philippines in an authorized foreign exchange bank of Japan designated
by the Government of the Republic of the Philippines or its designated
authority (hereinafter referred to as "the Bank").
(2) The payments referred to in sub-paragraph (l) above will
be made when payment requests are presented by the Bank to the
Government of Japan under an authorization to pay issued by the
Government of the Republic of the Philippines or its designated
authority.
(3) The sole purpose of the account referred to in sub-paragraph (l)
above is to receive the payments in Japanese yen by the Government of
Japan and to pay to the Japanese nationals who are parties to the
Verified Contracts. The procedural details concerning the credit to and
debit from the account will be agreed upon through consultation between
the Bank and the Government of the Republic of the Philippines or its
designated authority.
6. (l) The Government of the Republic of the Philippines will take
necessary measures:
(a) to secure a lot of land necessary for the construction
of the Facilities of the Institute and to clear the site;
(b) to provide facilities for distribution of electricity, water supply
and drainage and other incidental facilities outside the site;
(c) to ensure prompt unloading and customs clearance at ports of
disembarkation in the Republic of the Philippines and internal
transportation therein of the products purchased under the Grant;
(d) to assume, by itself or through its executing agency or
instrumentality, all customs duties, internal taxes and other fiscal
levies which may be imposed in the Republic of the Philippines on
Japanese nationals with respect to the supply of the products and
services under the Verified Contracts;
(e) to accord Japanese nationals whose services may be required in
connection with the supply of the products and services under the
Verified Contracts such facilities as may be necessary for their entry
into the Republic of the Philippines and stay therein for the
performance of their work;
(f) to ensure that the Facilities of the Institute constructed and the
equipment purchased under the Grant be maintained and used properly and
effectively for the activities of the Institute; and
(g) to bear all the expenses, other than those to be borne by the Grant,
necessary for the establishment of the Institute.
(2) The products purchased under the Grant shall not be re-exported from
the Republic of the Philippines.
7. The two Governments will consult with each other in respect of any
matter that may arise from or in connection with the present
arrangements.
I have further the honour to propose that this Note and Your
Excellency's Note in reply confirming on behalf of the Government of the
Republic of the Philippines the foregoing arrangements shall be
regarded as constituting : an agreement between the two Governments,
which will enter into force on the date of Your Excellency's reply.
I avail myself of this opportunity to renew to Your Excellency the
assurance of my highest consideration.
Honorable Manuel Collantes
Acting Minister for Foreign Affairs
Ministry of Foreign Affairs
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(Sgd.)HIDEHO TANAKA |
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Ambassador Extraordinary &
Plenipotentiary |
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of Japan to the Republic of the Philippines |