Treaty (17 January 1968)

January 17, 1968

EXCHANGE OF NOTES CONSTITUTING AN AGREEMENT

BETWEEN THE UNITED STATES OF AMERICA AND THE

PHILIPPINES FOR THE ESTABLISHMENT AT CLARK AIR

BASE OF A COMMERCIAL BRANCH BY A PHILIPPINE BANK

AND RELATING TO UNITED STATES TREASURY FACILITIES

AT CLARK FIELD AIR BASE AND SANGLEY POINT NAVY

BASE

UNITED STATES OF AMERICA

Bank Facilities at Clark Air Base

Agreement effected by exchange of notes,Dated at Manila 17 and 23 January 1968;

Entered into force 23 January 1968.

I

No. 563

The Embassy of the United States of America presents its compliments to the

Department of Foreign Affairs of the Republic of the Philippines and has the honor

to refer to recent informal consultations, which have taken place between officers of

the Embassy and officials of the Department of Foreign Affairs, concerning the need

for expansion of banking facilities at Clark Air Base and Sangley Point Navy Base.

As the Government of the Philippines is aware, the need for such banking facilities

to serve the requirements of these bases and their personnel has continued to

increase significantly.

In order to fulfill part of this increasingly urgent need, the United States Government

proposes establishment at Clark Air Base of a commercial branch by a Philippine

bank. In accordance with the provisions of Article XIX of the Military Bases

[1]

Agreement of 1947, as amended, the consent of the Philippine Government is

therefore requested for establishment within the limits of Clark Air Base of a

commercial branch by a Philippine bank. This commercial branch would, of course,

be subject to the exercise of all applicable control by Philippine monetary 2nd

banking authorities. The fact that it would actually be located within the limits of

Clark Air Base would convey no immunity whatsoever from such Philippine

controls. Philippine Government officials, when required to do so in the

performance of their officials duties, would be permitted to enter the Base for the

purpose of examining the operations of this commercial branch.

The Prudential Bank and Trust Company, which has been designated a depository of

public moneys of the United States since July 13, 1959, has proposed to the

commanding officer of Clark Air Base that it be authorized to establish such a

commercial branch as referred to above within the limits of the Base. Subject to theconsent of the Philippine Government, in accordance with the provisions of Article

XIX of the above referenced Military Bases Agreement, the United States

Government proposes to grant such authority to the Prudential Bank and Trust

Company. If the foregoing proposal meets with the approval of the Philippine

Government, the Embassy suggests that this note and the Department of Foreign

Affairs affirmative reply be considered as constituting an agreement, as

contemplated in Article XTX of the above referenced Military Bases Agreement.

The Embassy avails itself of this opportunity to inform the Department of Foreign

Affairs that, in accordance with the provisions of Article XVIII of the above

referenced Military Bases Agreement, two United States Treasury facilities, agencies

of the United States Government, are being established, one at Clark Field Air Base

and the other at Sangley Point Navy Base. The Embassy avails itself of this

opportunity to renew to the Department of Foreign Affairs the assurances of its

highest consideration.

W. E. K,

Manila, Philippines

January 17, 1968

II

REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF FOREIGN AFFAIRS

No. 3379

The Department of Foreign Affairs presents its compliments to the American

Embassy and has the honor to refer to the Embassy’s note No. 563 dated January 17,

1968, which reads as follows:

[See note I]

The Philippine Government is agreeable to the above-mentioned proposal for the establishment at Clark Air Base of one commercial branch of the Prudential Bank and Trust Company, and considers the Embassy's note and this reply as constituting an agreement under Article XIX of the Military Bases Agreement between the Philippine Government and the United States Government. The Department avails itself of this opportunity to renew to the Embassy the assurances of its highest consideration.

N. R. Manila, January 23, 1968[1] 1 PTS 357; 1 PTS 443; 1 PTS 525; 1PTS 699; 2 PTS 131; 2 PTS 517; 3 PTS 65;

3 PTS 79; 3 PTS 133; 3 PTS 181; 3 PTS 621; 4 PTS 5; 4 PTS 11; 4 PTS 371; 4 PTS

951; 4 PTS 991; 4 PTS 1045; 4 PTS 1045; 4 PTS 1051. For prior agreement on banking facilities in Subic Naval Base, See 4 PTS 991.