Article 1
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: (1) That the property has been or will be declared surplus by the United States owning agency, pursuant to the said Surplus Property Act, and (2) That no property is sold hereby which is already under contract or firm commitment for sale or transfer, and (3) That, at the option of the United States, exercised within ninety days from the effective date hereof, property having a sales value of ten million dollars, in addition to the property designated in Article one-(2) hereof, shall be deemed to be under firm commitment to governments other than the Philippines to which the United States has extended credit for the purchase of surplus property.