Treaty (11 December 2001)

December 11, 2001

MEMORANDUM OF UNDERSTANDING BETWEEN THE REPUBLIC OF THE PHILIPPINES AND THE MACAO SPECIAL ADMINISTRATIVE REGION TO AMEND THE AIR SERVICES AGREEMENT

1. Delegations representing the governments of the Republic of the Philippines and of the Macao Special Administrative Region (hereinafter referred to as “Philippines” and “Macao SAR” respectively, or “the Contracting Parties” collectively) met at the Clark Special Economic Zone, Pampanga, Philippines on 10th and 11th December 2001 for air services consultations in accordance with Article XIII of the Air Services Agreement signed between the Contracting Parties on 18th July 1997 (hereinafter referred to as “the Agreement”). A list of the members of the two delegations in attached hereto as Appendix A, and forms an integral part hereof.

2. The discussions were held in a very friendly and cordial atmosphere. The delegations reached the following agreements:

A. Amendment of Article IV.1 of the Agreement

Article IV.1 of the Agreement is amended to read as follows:

“Multiple airline designation shall be allowed by the Contracting Parties for the purpose of operating the agreed services on the specified routes.” B. Amendment to the Annex of the Agreement The delegations agreed that the Annex to the Agreement be replaced with the provisions set out in Appendix B hereof.

3. This Memorandum of Understanding shall be confirmed by an exchanged of letters through the appropriate channels, and shall enter into force in accordance with Article XVIII of the Agreement. The Contracting Parties agree to accord provisional effect to this Memorandum of Understanding pending its formal entry into force. Signed on this eleventh day of December 2001 at the Clark Special Economic Zone, Pampanga, Philippines. For the delegation of the Government of For the delegation of the Government of The Republic of the Philippines: the Macao Special Administrative Region:

(Sgd.) ALAN ADENA (Sgd.) TAN CHANG WENG HONGAPPENDIX A THE REPUBLIC OF THE PHILIPPINES DELEGATION -Assistant Secretary Department of Transportation and Chairman Hon. Alan Adena Tan Communications Atty. Maria Angela A. -Director, Treaties Division Office of Legal Affairs Members Ponce Department of Foreign Affairs -Chief, Bilateral Relations Division Ms. Maria Salome Bureau of International Trade Rebosura Relations Department of Trade and Industry -Board Member Atty. Lito A. Mondragon Civil Aeronautics Board -Executive Director Atty. Manuel C. San Jose Civil Aeronautics Board -Chief, Economic Planning Mr. Porvenir P. And Research Division Porciuncula Civil Aeronautics Board -Senior Transportation Ms. Violeta O. Padua Regulation Officer Civil Aeronautics Board -Executive Vice President Mr. Victor Jose I. Luciano and Chief Operating Officer Clark Development Corp. -Vice President and General Mr. Bienvenido 0. Manga Manager of Diosdado Macapal International Airport -Manager - Corporate Planning & Information Mr. Lauro A. Ortile Systems Dept. Clark Development Corp. -Vice President Corporate Planning and Advisers Ms. Ma. Delia P. Vera External Affairs Cebu Pacific Air -Director Atty. Racquel T. Ruiz- Legal Affairs Dimalanta Cebu Pacific Air -Manager Ms. Yvonne Therese V. Planning & Business Devt Loy Cebu Pacific Air -Assistant Vice President- Ms. Ma. Socorro R. External Affairs Gonzaga Philippine Airlines, Inc.Mr. Jose Enrique L. Perez -Manager-Government Affairs de Tagle Philippine Airlines, Inc. Atty. Alejandre C. Duenas -Consultant-Legal Affairs II Philippine Airlines, Inc. -Senior Vice-President for Ms. Patricia T. Chiong Administration Air Philippines Corp. -Legal Counsel Atty. John Evangelista Air Philippines Corp.

THE MACAO SAR DELEGATION

Vice-President Mr. Chan Weng Hong Civil Aviation Authority of Macao SAR (Head of delegation) Director of Air Transport & International Mr. Antonio Menano Relations Civil Aviation Authority of Macao Area Manager - Macao & Hong Kong Mr. See Yat Khiong Air Macau Company Ltd.

APPENDIX B

ANNEX

I. Routes for the operation in both directions by the designated airlines of the Macao Special Administrative Region:

1. For passenger and cargo combination services. Point of Intermediate Points Points of Destination Origin Points Beyond o Manila o Clark (Diosdado Macapagal International Macao Airport) o And two (2) additonal points be agreed upon 2. For all-cargo services : Point of Intermediate Points Points of Destination Origin Points Beyond Macao o Manila Two (2) beyond points to be agreedo Clark (Diosdado Macapagal International Airport) o And two (2) additonal points be agreed upon II. Routes for the operation in both directions by the designated airlines of the Republic of the Philippines:

1. For passenger and cargo combination services: Intermediate Points Point of Origin Points of Destination Points Beyond o Manila o Clark (Diosdado Macapagal Any Two (2) Internationa beyond points Macao lo And two (2) additonal points be agreed upon Airport) 2. For all-cargo services: Intermediate Points Point of Origin Points of Destination Points Beyond o Manila o Clark (Diosdado Macapagal Two International Macao beyond points to be Airport) agreed o And two (2) additonal points be agreed upon III. Notes:

1. Points in Hongkong, Taiwan and Inland of China may not be served either as intermediate points or as points beyond.

2. The designated airlines of both Contracting Parties may on all or any flights omit calling at any of the above points provided that the agreed services on the route begin at points of origin in the respective areas.

MALACANANG MANILAINSTRUMENT OF RATIFICATION TO ALL TO WHOM THESE PRESENTS SHALL COME, GREETINGS:

KNOW YE, that whereas, the Memorandum of Understanding Between the Republic of the Philippines and the Macao Special Administrative Region to Amend the Air Services Agreement was signed at the Clark Special Economic Zone in Pampanga on 11 December 2001;

WHEREAS, the MOU, consisting of three (3) articles, aims to amend the air services between the Contracting Parties in accordance with Article XIII of the Air Services Agreement signed by both Parties at the Clark Special Economic Zone in Pampanga on 18 July 1997;

WHEREAS, the MOU amends Article VI.1 of the Agreement to allow for multiple airline designation by the Contracting Parties for the purpose of operating the agreed services on the specified routes;

WHEREAS, the MOU further amends the Annex to the Agreement by providing for Clark (Diosdado Macapagal International Airport) and two additional points to be agreed upon as points of destination for passengers and cargo combination services;

WHEREAS, the MOU provides that it shall be confirmed by an exchange of letters, through the appropriate channels, and shall enter into force in accordance with Article XVIII of the Agreement. The Contracting Parties agree to accord provisional effect to the MOU, pending its formal entry into force.

WHEREAS, this MOU is not one of those treaties and international agreements contemplated in Section 21, Article VII of the 1987 Constitution which requires the concurrence of the Senate, but an executive agreement which can be validly entered into by H.E. The President in the exercise of her treaty making powers;

NOW, THEREFORE, be it known that I, GLORIA MACAPAGAL ARROYO, President of the Republic of the Philippines, after having seen and considered the Memorandum of Understanding Between the Republic of the Philippines and the Macao Special Administrative Region to Amend the Air Services Agreement, do hereby ratify and confirm the same and each and every Article and Clause thereof. IN TESTIMONY WHEREOF, I have hereunto set my hand and caused the seal of the Republic of the Philippines to be affixed. GIVEN under my hand at the City of Manila, this 2nd day of June in the year of Our Lord two thousand and three

BY THE PRESIDENT:(Sgd.) DELIA D. ALBERT Acting Secretary of Foreign Affairs