Page:Implementation of the Manila Accord.djvu/4

 rights and obligations of the United Kingdom Government in respect of the State of Sabah as from 16th September, 1963', but desires to state that the establishment of the so-called 'State of Sabah' is, in the Philippine view, subject to serious dispute. Indeed, the Malaysian Government could not have acquired more rights in North Borneo than those possessed by the United Kingdom, and the establishment of the 'Federation of Malaysia' cannot conceivably improve the standing of Malaysia vis-a-vis the Philippines."

To realize the above objective to bring the claim to a just and expeditious solution by peaceful means, the Government of the Philippines now proposes that both Governments agree as soon as possible on a mode of settlement that is mutually acceptable to both parties. The Government of the Philippines is convinced that with goodwill and sincerity on the part of both parties no obstacle would be insurmountable towards a just and equitable settlement of the Sabah claim.

The Department of Foreign Affairs avails itself of this opportunity to extend to the Ministry of External Affairs of Malaysia the renewed assurances of its highest consideration.

Manila, February 7, 1966

Animated by the mutual desire to strengthen the relations between their two countries, the Government of the Republic of the Philippines and the Government of Malaysia have agreed to raise their respective consular establishments to ambassadorial level.

Both Governments have agreed to abide by the Manila Accord of July 31, 1963, and with the Joint Statement accompanying it, for the peaceful settlement of the Philippine claim to Sabah. They have also recognized the need of sitting together, as soon as possible, for the purpose of clarifying the claim and discussing the means of settling it to the satisfaction of both parties in consonance with the said Manila Accord and Joint Statement. Both Governments have agreed that a meeting should be arranged between the two countries as soon as possible in order that steps may be taken to carry out the assurances of the Malaysian Government to cooperate with the Philippines in the eradication of smuggling.