Treaty (15 January 1953)

January 15, 1953

EXCHANGE OF NOTES CONSTITUTING AN AGREEMENT

AMENDING THE AGREEMENTS BETWEEN THE

PHILIPPINES AND THE UNITED STATES OF AMERICA

IMPLEMENTING THE AGREEMENT OF 14 MARCH 1947

CONCERNING MILITARY BASES

Note: The Agreement entered into force, February 9, 1953.

Reference: This Agreement is also published in 229 UNTS, p. 282.

I

THE PHILIPPINE SECRETARY OF FOREIGN AFFAIRS TO THE

AMERICAN AMBASSADOR REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FOREIGN AFFAIRS

Manila, January 15, 1953

Excellency :

I have the honor to refer to my note of December 29, 1952 proposing the exemption

of United States military agencies and their instrumentalities including their

authorized contractors from the contractor's tax of 3%, the excise or com pensating

tax of 7% and upwards, the foreign exchange tax of 17%, and the import licensing

formality and fee of 2% in respect o£ goods and services im ported by such agencies

and instrumentalities from abroad or procured locally from importers, manufacturers

and producers either by such agencies and instru mentalities directly or through the

agency of private contractors acting for and in their behalf, provided that such goods

and services are exclusively destined for and actually utilized in the construction,

operation, maintenance and defense of the bases, and provided further that such

exemptions are subject to the con ditions specified in any note under reference.

A review of my Government's proposal has disclosed that mention of the 17%

foreign exchange tax was inadvertently omitted as one of the exemptions also

subject to the conditions prescribed before such an exemption may be grant ed.

Accordingly, I have the honor to propose that the opening sentence of the first

paragraph on page 2 of my note of December 29, 1952 be amended to incorporate

mention of this particular tax as follows: (proposed amendment un derscored ).

"In case of the contractor's tax of 3%, the excise or compensating tax of

7% and upwards, the foreign exchange tax of 17% and the import

licensing formality and fee of 2%, the Philippine Government requires of

the United States base commanders concerned or their respective

contracting officers, etc."

I would appreciate if Your Excellency's Government could accept the above-

indicated amendment of my note under reference and this note together with YourExcellency's concurrence thereto taken as integral parts of the original understanding

of our respective Governments regarding these exemptions.

Accept, Excellency, the renewed assurances of my highest consideration.

J. M. ELIZALDE Secretary

His Excellency R. A. SPRUANCE

Ambassador of the United States of America

Manila

II

THE AMERICAN AMBASSADOR TO THE PHILIPPINE SECRETARY OF

FOREIGN AFFAIRS

THE FOREIGN SERVICE OF THE UNITED STATES OF AMERICA

AMERICAN EMBASSY

No. 852

Manila, February 9, 1953

Excellency :

I have the honor to refer to Your Excellency's note dated January 15, 1953 proposing

an amendment to the opening sentence of the first paragraph on page two of Your

Excellency's note of December 29, 1952 which concerned the exemp tion of United

States military agencies and instrumentalities from certain Philip pine taxes. The

cited paragraph reads as follows (proposed amendment under scored ):

[See note 7]

I wish to inform Your Excellency that the foregoing amendment is accept able to my Government which, together with the note under reference, is con sidered by my Government to be an integral part of the original understanding regarding the exemptions. Accept, Excellency, the renewed assurances of my highest consideration.

R. A. SPRUANCE His Excellency JOAQUIN M. ELIZALDE Secretary of Foreign Affairs Republic of the Philippines Source: Supreme Court E-LibraryThis page was dynamically generated