An Act to Approve the Agreement Entered into Between the Government of the Republic of the Philippines and the Government of the United States of America, Dated September Eleventh, Nineteen Hundred and Forty-Six; to Authorize the Acceptance, Administration, Sale, and Disposition of the Surplus Property Acquired Thereunder; and to Appropriate the Necessary Funds for the Purpose

REPUBLIC ACT No. 33

An Act to Approve the Agreement Entered into Between the Government of the Republic of the Philippines and the Government of the United States of America, Dated September Eleventh, Nineteen Hundred and Forty-Six; to Authorize the Acceptance, Administration, Sale, and Disposition of the Surplus Property Acquired Thereunder; and to Appropriate the Necessary Funds for the Purpose

Be it enacted by the Senate and House of Representatives of the Philippine Congress Assembled:

WHEREAS, on the Eleventh day of September, Nineteen Hundred and Forty-Six, the President of the Philippines representing the Government of the Republic of the Philippines, and the Central Field Commissioner for the Pacific and China, Office of the Foreign Liquidation Commission, Department of State, representing the Government of the United States of America, entered into an Agreement in words and in figures as follows:

AGREEMENT BETWEEN THE UNITED STATES AND THE PHILIPPINES FOR THE SALE OF CERTAIN SURPLUS WAR PROPERTY

This Agreement between the Government of the United States of America, hereinafter called "United States," and the Government of the Republic of the Philippines, hereinafter called "Philippines."

WITNESSETH:

WHEREAS, the cessation of active military operations in the war with Japan has rendered surplus to the needs of the United States quantities of its property now situated in the Philippine Islands; and

WHEREAS, the Congress of the United States has, by the Surplus Property Act of 1944, as amended, authorized the disposal of the surplus property of the United States; and the Central Field Commissioner for the Pacific and China of the Office of the Foreign Liquidation Commissioner has been charged with responsibility for that disposal in the Philippine Islands; and

WHEREAS, such surplus property available for sale to the Philippines, exclusive of property which is already under contract or firm commitment for sale or transfer, represents an estimated aggregate procurement cost of approximately six hundred thirty million dollars in movables and fifty-five million dollars in fixed installations, of which over one-half has already been declared surplus; and

WHEREAS, it is the policy of the United States, as declared in the Surplus Property Act, to establish and develop foreign markets and promote mutually advantageous economic relations between the United States and other countries by the orderly disposition of surplus property to other countries, and to dispose of surplus property as promptly as feasible without fostering monopoly or restraint of trade; and

WHEREAS, the prosecution of the war with Japan caused widespread damage and loss in the Philippine Islands; and

WHEREAS, the Congress of the United States has, by the Philippine Rehabilitation Act of 1946, authorized the grant to the Philippines of surplus property in the Philippine Islands aggregating not more than one hundred million dollars in fair value without reimbursement to the United States; and chanrob1es virtua1 1aw 1ibrary

WHEREAS, a general understanding as to the property to be granted under the Philippine Rehabilitation Act of 1946 has been reached between the United States and the Philippines, and certain of such property has heretofore been transferred to the Philippines in accordance with the terms of Contracts Nos. W-ANL(PA-I)-206, W-ANL(PA-I)-1611, and W-ANL(PA-I)-3811 on the understanding that if and when said Rehabilitation Act became law, the fair value of the property so transferred would be charged as a transfer within the contemplation of, and under, said Rehabilitation Act; and

WHEREAS, the United States has a financial obligation to the Philippines arising from advances and loans to the United States and the issuance of emergency currency and guerrilla currency during the war with Japan;

NOW, THEREFORE, in consideration of the promises and the mutual agreements and covenants hereafter stated, it is agreed:

ARTICLE 1
PROPERTY SOLD AND GRANTED

That by these presents the United States sells and grants and the Philippines buys and accepts all that property owned by the United States on the effective date hereof but surplus to its needs in the Philippine Islands, except aircraft, ships (other than as specified in Article six, paragraph a, hereof) and non-demilitarized combat material, subject however, to the limitations following:

ARTICLE 2
TRANSFER OF POSSESSION

ARTICLE 3
DISTRIBUTION

That the Philippines shall utilize to the greatest extent possible established commercial distribution channels for the resale of property sold hereby and that United States distributors established in the Philippine Islands shall have an equal opportunity to bid for and to obtain such property. That the Philippines shall recognize normal distribution practices including the marketing wherever practicable of same brand products through the established agencies for such products.

ARTICLE 4
WARRANTIES

That the United States warrants title to the property transferred, and that in lieu of any other warranty or undertaking as to the kind, size, weight, quantity, quality, character, value, description, condition or fitness for use thereof, it is understood that if a material disparity is found to exist between the property transferred to the Philippines hereunder and the consideration given therefor by the Philippines hereunder, the two Governments will consult together to fix an appropriate adjustment in the price paid.

ARTICLE 5
CONSIDERATION

ARTICLE 6
MISCELLANEOUS PROVISIONS

WHEREAS, the said Agreement is advantageous to the Philippines, as it will keep in this country properties declared surplus to the needs of the Government of the United States of America and which will be necessary for the reconstruction and rehabilitation of the Philippines or which may be sold in order to raise funds for such reconstruction and rehabilitation; and

WHEREAS, under said Agreement, some pending obligations of the United States of America to the Philippines and to our people are settled by immediate cash payment and payment in surplus properties, thereby avoiding the uncertainties and the delay which any other form of liquidation would entail; Now, therefore:

Section 1. The Agreement entered into between the Government of the Republic of the Philippines and the Government of the United States of America on the eleventh day of September, nineteen hundred and forty-six, hereinbefore set forth, is hereby approved.

Section 2. The President of the Philippines, or such agency or instrumentality as he may create or designate, is hereby authorized to accept and administer the surplus properties acquired under said Agreement, and to sell or dispose of so much of such surplus properties as may not be needed by the Government, its subdivisions and instrumentalities, including government-owned or controlled corporations, either in the Philippines or abroad, under such terms and conditions as may be deemed most advantageous, hereby appropriating from the proceeds of the sales of such properties the necessary amount or amounts for the administration and custody of such properties and for the operating expenses of the office, agency or instrumentality which will handle their sale or disposition.

Section 3. This Act shall take effect upon its approval.

Approved: September 27, 1946