ÌÀÍ·Ìõ

December 07, 1959

  Note: The Agreement entered into force, December 7, 1959.

Reference: This Agreement is also published in 359 UNTS, p. 227.

I

No. 606

Manila, December 7, 1959

Excellency:

I have the honor to refer to Part I of the Memorandum of Agreement signed by Your Excellency and Ambassador Bohlen on August 14, 1959 and the recent discussions between representatives of our two governments concerning relinquishment of the community of Olongapo and certain areas adjacent thereto which are now located within the United States Naval Base, Subic Bay.

I have been advised that the agreed report of recommendations of the Philippine-United States Olongapo Committee have been accepted by my Government as terms for the relinquishment and is appended hereto as an annex.In accordance with the aforesaid report and in implementation of Part I of the Memorandum of Agreement of August 14, 1959, my Government hereby relinquishes to the Philippine Government the entire area north of the northern boundary line of the Naval Base as delineated in red on the map designated Map No. 4 in the Memorandum of Agreement and specifically described in the document dated September 27, 1959 appended to that map. The exact metes and bounds of this boundary line will be those determined by the Metes and Bounds Committee of the Mutual Defense Board. It is understood that the United States Government will transfer to the Philippine Government at the earliest possible date title to any items of property listed in the aforesaid agreed report to which title cannot be transferred today. In the interim, the Philippine Government shall have the use of such items of property.

It is further understood that the Philippine Government will hold the United States Government harmless from any claims which may arise from the use by others than the United States of the areas released today, except for those meritorious claims paid by the United States.

If the foregoing is acceptable to your Government, I have the honor to propose that this note with its annex and Your Excellency's reply thereto indicating such acceptance shall constitute the agreement of our two Governments with respect to relinquishment of the community of Olongapo and adjacent areas to the Philippine Government.

Accept, Excellency, renewed assurances of my highest consideration.

George M. ABBOTT
Charge d'Affaires ad interim

His Excellency Felixberto M. Serrano
Secretary of Foreign Affairs
for the Republic of the Philippines

ANNEX

AGREED REPORT OF RECOMMENDATIONS
PHILIPPINE-UNITED STATES OLONGAPO COMMITTEE

1. The Olongapo Committee met in the conference room at the headquarters of the Commander United States Naval Base, Subic Bay, at 10:40 a.m., 21 October 1959.

2. The Co-Chairmen introduced their respective members and technical advisors as follows;

3. The Terms of Reference of the Philippine-United States-Olongapo Committee were read into the official record (Appendix I).

4. The Co-Chairmen agreed to proceed with executive meetings behind closed doors.

5. The Co-Chairmen agreed that there would be a joint press release at such times as may be mutually agreed upon. The Co-Chairmen instructed the members and technical advisors present that they were not to divulge any information concerning the deliberations of the committee.

6. The Philippine Co-Chairman exhibited a chart entitled "a composite map from 4 sheets of AMS charts, series 8711, No. 3064 I, 3064 II, 3064 III, and 3064 IV" and initialed by Ambassador Bohlen of the United States and Secretary of Foreign Affairs Serrano of the Republic of the Philippines. (A photostatic copy of the above chart is attached to this report as Appendix II). He noted for the record that the Terms of Reference of this committee state that the purpose of the committee is to agree jointly upon the necessary administrative arrangements to effect the orderly and efficient transfer of the Community of Olongapo. The American Co-Chairman noted for the record that, at present, the Community of Olongapo has not been established as a separate political subdivision other than as a barrio of Subic City and that the exact geographical area comprised in such barrio has never been delineated. He further noted that the above chart (Appendix II) does not show any boundary line between the Community of Olongapo and the remaining northern portion of the present United States Naval Base, Subic Bay, which is to be relinquished to the Philippine authorities. Since the separate transfer of the Community of Olongapo without including the above mentioned northern portion of the Naval Base would give rise to serious sociological, economic, jurisdictional and related problems, to obviate the need for a separate committee, and to expedite the work of the committee under the Terms of Reference, the Co-Chairmen agreed on the following:

a. That the Co-Chairmen should recommend that the entire area north of the agreed northern boundary line of the United States Naval Base, Subic Bay, shown in Appendix II, as delineated with a red line on the chart and specifically described in the document appended to such chart dated 27 September 1959, should be relinquished to the Philippine authorities simultaneously with the transfer of the Community of Olongapo.

b. The Co-Chairmen agreed to recommend that the waters along Half Moon Beach be open to the public for swimming and other recreational purposes to the extent that such use will not impair the security requirements of the United States Naval authorities. In this connection, it was noted for the record that the problem areas related to navigation, fishing, and other access rights to the waters of Subic Bay are a matter for separate arrangement between the appropriate Philippine and United States authorities.

7. The Co-Chairmen agreed that the delineation of the political subdivision of the Community of Olongapo subsequent to the transfer thereof to the appropriate Philippine authorities shall be the exclusive concern of the Philippine authorities.

8. It is agreed that Commander United States Naval Base, Subic Bay, will turn over to the appropriate Philippine authorities on the date of transfer of the Community of Olongapo a certified list of land and business permit holdings. The Co-Chairmen agreed to recommend that the Philippine Government shall hold harmless the United States Government, its agents or employees, by defending and, if liability is established, satisfying all claims against the United States, its agents or employees, that may arise after turnover in connection with any and all types of permits issued by the United States Navy. It is further understood that any claims against the United States Government, its agents or employees, arising or existing prior to the date of the transfer shall not be the responsibility of the Philippine Government.

9. The Co-Chairmen agreed that, on the date of transfer, the United States Navy will turn over to the appropriate Philippine authorities a certified copy of the closing statement of the account of the Olongapo Community Fund, together with a copy of all financial records pertaining thereto, including books and accounts as required.

10. The Co-Chairmen agreed that all items carried in the Plant Account of the community on the date of transfer will be turned over to the appropriate Philippine authorities. The list of items carried in Class I and Class II of the Plant Account on 22 October 1959 is attached hereto as Appendix III. It was further agreed that all items of Class III equipment and consummates under the cognizance of the Administrative Officer of Olongapo and utilized in the Community of Olongapo on the date of transfer will be turned over to the appropriate Philippine authorities. A general description of the principal items of equipment in this category is set forth in Appendix IV. On the date of transfer a copy of all available records pertaining to the foregoing classes of materials will be turned over to the appropriate Philippine authorities.

11. The Co-Chairmen agreed that the United States Navy will provide to the Community of Olongapo on the date of turnover two pieces of fire apparatus fully operational and in condition to carry out their intended purposes. The Co-Chairmen agreed that the United States Navy will provide advice, assistance, and training in fire-fighting to the degree considered practicable by Commander Naval Base to members of the organized fire department of Olongapo. The United States Navy will provide fire-fighting service to the Community of Olongapo on a special-request basis in accordance with an arrangement to be drafted at the local level between the Commander Naval Base, Subic Bay, and the appropriate municipal officials of Olongapo.

12. The Co-Chairmen agreed that the ice manufacturing plant located at the Olongapo Public Market will be transferred on an "as-is" basis. A dtailed description of this plant is set forth in Appendix V.

13. The Co-Chairmen agreed to the transfer of the installed and operating water system on an "as-is" basis on the date of transfer of the Community of Olongapo. The water system is more specifically described in Appendix VI to this report.

14. The Co-Chairmen agreed to the transfer of the entire telephone system of Olongapo on an "as-is" basis. This system is described in detail in Appendix VII. Provision for the continuation of the trunk lines connecting the Community of Olongapo to the United States Naval Base switchboard will be the subject of an arrangement under the normal contract procedure for utilities contracts.

15. The Co-Chairmen agreed to the transfer of the existing electrical power facilities in the area to be transferred on an "as-is" basis to include the installed transmission lines, poles, transformers, necessary appurtenances and auxiliary equipment excepting the electrical power and telephone poles, lines, and appurtenances serving the Maquinaya and Manga Beach United States Navy training and recreation areas. This excepted system is more specifically described in Appendix IX. A more detailed description of the electrical system to be transferred is set forth in Appendix VIII. The Co-Chairmen further agreed that the United States Navy will furnish to the Community of Olongapo, on a reimbursable basis, electrical power to a maximum peak load of 3,000KW for a period not to exceed three years, or until such date as the Community of Olongapo can provide its own power, whichever shall first occur. The rates for the supply of electrical power will be determined in accordance with United States Navy Instructions governing contract procedure for utilities contracts. The foregoing will not preclude the Philippine authorities from negotiating with the United States Navy authorities for such assistance and cooperation as may be needed in connection with the supply of electrical power in appropriate cases or circumstances. In this agreement for the supply of electrical power, the United States Navy reserves the priority rights to all power generated in its own facilities to meet emergency situations such as equipment failure, sabotage, natural disaster, etc. However, every effort will be made by the United States Navy to supply the full amount of power as agreed herein.

16. The Co-Chairmen agreed that the United States Navy will be granted a right of way (including the right to remove any obstructions within fifty (50) feet of the pole lines) from the United States Naval Base, Subic Bay, to the United States Naval Base training and recreation areas at Maquinaya Beach and Manga Beach through an area specifically described in Appendix IX for the purpose of erecting and maintaining electric power and telephone systems. It is further agreed that the Philippine Government will take measures within its power to provide reasonable security for these systems against sabotage, pilferage, or un lawful interference, and will insure the right of access of United States Naval maintenance, repair, and construction personnel to these systems.

17. The Co-Chairmen agreed that the United States Navy shall have the right to maintain aviation obstruction warning lights and supporting appurtenances now located along the Kalaklan Ridge with right of egress and ingress for the purpose of maintenance thereof. Locations of said lights are specifically shown on Appendix IX. It is further agreed that the Philippine Government will take measures within its power to provide reasonable security for these systems against sabotage, pilferage, or unlawful interference.

18. The Co-Chairmen agreed that all other structures, facilities, and installations belonging to the United States Navy (with the exception of the beacon lights on Kalaklan Ridge described in paragraph 17 and the electrical power system described in paragraph 16) located within the area of the Subic Naval Base to be turned over to the Philippines and not covered by the Olongapo Plant Account, shall be considered for all purposes as included in the transfer of the Community of Olongapo.

19. The Co-Chairmen agreed that, in the interests of preservation of law and order after turnover, the United States Navy will, on the date of turnover, administratively assign to the custody of Chief of the Navy Section, Joint United States Military Advisory Group, Philippines, who will transfer to the Philippine Government under the Military Assistance Program for use by the Community of Olongapo 45 pistols, calibre 45; 2 shotguns; 1 carbine; 1 rifle, caliber .22 and 1 pistol, calibre .22. These weapons will be delivered to the designated Philippine authority in the Community of Olongapo and a receipt for same shall be provided Commander United States Naval Base, Subic Bay, for forwarding to Chief of the Navy Section, Joint United States Military Advisory Group, Philippines.

20. In connection with the transfer of the public utilities and other equipment hereinabove mentioned, the Co-Chairmen agreed that the term "as-is basis" shall mean the condition and location on the date of transfer. However, the Co-Chairmen agreed that, pending the final turnover, the United States naval authorities shall take all reasonable precautionary measures to insure against possible breakdown, losses, pilferage, and destruction.

21. Recognizing that an orderly and efficient transfer of the Community of Olongapo will require an extended continuity in the day to day working friendships and relationships that now exist between the Olongapo Community and the United States Naval Base, the Co-Chairmen agreed that certain municipal officials will have a need for convenient egress and ingress to and from the Naval Base in order to confer and consult with the base authorities on matters of mutual concern. This need is therefore acknowledged as a matter of principle and for purposes of their identification, the United States Navy authorities may issue to those officials personal identification cards showing their names, official status, and photographs. The issuance of such identification cards shall be without prejudice to the requirements of military security.

22. It is mutually agreed that there shall be close cooperation on a reciprocal basis between the United States Military and United States Naval Police Forces of the United States Armed Forces and the police forces of the Community of Olongapo for the purpose of preserving order and discipline among United States military and naval personnel while in the community.

23. The Philippine Co-Chairman brought to the attention of the committee the need on the part of the local inhabitants to have free passage for ingress and egress on the new drainage canal and Kalaklan River to the bay area. An appropriate arrangement for this purpose consistent with the provisions of paragraph 3 of Article III of the Military Bases Agreement of 1947 is therefore deemed necessary. He stated that an expression of the attitude of the United States Navy authorities to this matter will be much appreciated by the Philippine Co-Chairman.

The United States Co-Chairman stated that matters related to fishing, navigation, and movement in the waters of Subic Bay and the tributaries which are within and are contiguous to the Naval Base are beyond the Terms of Reference of the committee and should be determined by the appropriate Philippine and United States Government authorities.

24. In the light of the provisions of paragraph 3 of Article III of the Military Bases Agreement of 1947, the Co-Chairmen agreed to submit the following recommendation:

That the appropriate Philippine and United States Government authorities consider and determine the matter of free passage for ingress and egress of the local inhabitants on the drainage canal and Kalaklan River to the waters of Subic Bay.

25. The Co-Chairmen agreed that the Philippine Government shall hold harmless the United States Government, its agents or employees, by defending and, if liability is established, satisfying all claims that may arise after turnover against the United States, its agents or employees, for any and all injuries, loss, and damage alleged to have been caused by the United States, its agents or employees,by reason of and in connection with the transfer of the Community of Olongapo to the Philippine Government as well as all injuries or damage arising from or incident to the condition, state of repair, or maintenance of the land, buildings, or the property transferred by the United States Navy to the Philippine authorities in connection with the transfer of the Community of Olongapo. It is understood that any claims against the United States Government, its agents or employees, arising or existing prior to the date of the transfer shall not be the responsibility of the Philippine Government.

26. The Co-Chairmen recognize that the problem of unauthorized occupants within the Subic Naval Base area is not within the Terms of Reference of this committee. Nevertheless, they have agreed to bring said problem to the attention of competent authorities of both governments for appropriate action and, for that purpose, have attached hereto as Appendix X a memorandum signed by the Co-Chairmen.

27. The Committee adjourned at 6:00 p.m., 23 October 1959.

28. The Co-Chairmen met at 10:00 a.m., 28 October 1959, at the office of the Philippine Co-Chairman, Department of Foreign Affairs, Manila.

29. The Co-Chairmen agreed that, in order to effect an orderly and efficient transfer of the Community of Olongapo to the appropriate Philippine authorities, the Philippine Government will furnish to the Commander United States Naval Base, Subic Bay, prior to the transfer, the name of a single Philippine official empowered to accept responsibility for and receive custody of the land, buildings, and other property to be turned over by the United States Navy to the Philippine Government with appropriate document(s) of authorization certifying that he is empowered to accept custody of the above-mentioned land, buildings, and other property on behalf of the Philippine Government.

30 The United States Co-Chairman noted for the record that the public knowledge of the imminence of transfer of the Community of Olongapo has set into motion certain sociological forces which, from the present until the date of the transfer, will render increasingly difficult the orderly and efficient transfer to the Philippine Government of the Community of Olongapo and the areas contiguous thereto.

With reference to the foregoing paragraph, the Co-Chairmen recommended that the transfer of the Community of Olongapo be treated as a matter of urgency and that the transfer be effected not later than 25 November 1959.

31. The Co-Chairmen adjourned at 2:00 p.m., 28 October 1959.

II

Manila, December 7, 1959

Sir:

I have the honor to acknowledge receipt of your note No. 606 of today's date, which reads as follows:

(SEE NOTE I)

The provisions set forth above and the annex appended to your note are acceptable to my Government and I therefore have the honor to state that your note and the present reply, including the annex attached hereto, constitute the agreement of our two Governments on the relinquishment to the Philippine Government of the Community of Olongapo and the entire area north of the northern boundary line of the Naval Base at Subic Bay as delineated in red on the map designated Map No. 4 in the Memorandum of Agreement signed by Ambassador Bohlen and myself on August 14, 1959, and specifically described in the document dated September 27, 1959 appended to that map, which comes into force on the date of this note.

I have the honor to further inform you that I have been empowered by my Government to accept on its behalf responsibility for and receive custody of the land, buildings and other properties to be turned over today by the United States Navy to the Philippine Government.

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

Felixberto M. SERRANO
Secretary of Foreign Affairs

The Honorable George M. Abbott
Charge d'Affaires ad interim
Embassy of the United States of America
Manila