May 27, 1971

AGREEMENT BETWEEN THE REPUBLIC OF THE PHILIPPINES AND THE FEDERAL REPUBLIC OF GERMANY CONCERNING FINANCIAL ASSISTANCE

Note: The Agreement entered into force, May 27, 1981.

Reference: This Agreement is also published in X DEA TS No. 1, p. 49.
 

In the spirit of the friendly relations existing between the Republic of the Philippines and the Federal Republic of Germany,

Desiring to strengthen and intensify those friendly relations by fruitful cooperation in the field of development assistance,

Aware that the maintenance of those relations constitutes the basis of the present Agreement,

Intending to promote the development of the Philippine economy, have agreed as follows:
 

ARTICLE 1

(1) The Government of the Federal Republic of Germany shall enable the Government of the Republic of the Philippines to take up with the Kreditanstalt fur Weideraufbau (Development Loan Corporation), Frankfurt/ Main, a loan up to a total of twelve million five hundred thousand German Marks for the development of several Philippine ports. (2) The loan forms part of the project's global financing for which, in addition, by means of Federal guarantees covering an order value of up to ten million German Marks export financing through supplier's credits or tied financial credits is made available. (3) The loan referred to in paragraph 1 above may also be used for other projects, if the Government of the Republic of the Philippines and the Government of the Federal Republic of Germany so agree.

ARTICLE 2

The utilization of the loan as well as the terms and conditions on which it is granted shall be governed by the provisions of the agreement to be concluded between the borrowers and the Kreditanstalt fur Wiederaufbau which shall be subject to the legal provisions applicable in the Federal Republic of Germany.
 

ARTICLE 3

The Government of the Republic of the Philippines shall exempt the Kreditanstalt fur Wiederaufbau from all taxes and other public charges levied in the Philippines at the time of the conclusion, or during the execution, of the loan agreement referred to in Article 2 of the present Agreement.
 

ARTICLE 4

The Government of the Republic of the Philippines shall allow passengers and suppliers, subject to the provisions of Article 5 of the present Agreement, free choice of means of transport for such transportation by sea or air of persons and goods as results from the granting of the loan, abstain from taking any measures that might exclude or impair the fair and equal participation of German transport enterprises, and grant the necessary permits as required.
 

ARTICLE 5

The loan may not be used to finance supplies from, or services by, the countries and regions named by the Government of the Federal Republic of Germany in a separate communication. This also includes supplies originating in any of those countries or regions. Similarly, supplies financed from the loan may not be conveyed in means of transport of those countries or regions.
 

ARTICLE 6

Supplies and services for the project, which are financed from the loan, shall be subject to public tender, to the extent that it is not provided otherwise in individual cases.
 

ARTICLE 7

With regard to supplies resulting from the granting of the loan, the Government of the Federal Republic of Germany attaches particular importance to preference being given to products of industries of Land Berlin.
 

ARTICLE 8

With the exception of those provisions of Article 4 which refer to air transport, this Agreement shall also apply to Land Berlin provided that the Government of the Federal Republic of Germany does not make Philippines within three months of the entry into force of the present a contrary declaration to the Government of the Republic of the Agreement.
 

ARTICLE 9

The present Agreement shall enter into force on the date of signature thereof.

DONE at Manila this 27th day of May, 1971 in four originals, two each in the English and German languages, all four texts being equally authentic.
 

Source: Supreme Court e-Library