ISSUE: Whether or not the State can exercise administrative jurisdiction within the naval base leased by the Philippines to the American armed forces.
FACTS: Appellant seeks to set aside a judgment of the Court of First Instance of Zambales, convicting her of a violation of an ordinance of Olongapo, Zambales, requiring a permit from the municipal mayor for the construction or erection of a building, as well as any modification, alteration, repair or demolition thereof. She questions its validity on the pretext that her house was constructed within the naval base leased to the American armed forces. While yielding to the well-settled doctrine that it does not thereby cease to be Philippine territory, she in effect seek to emasculate the State's sovereign rights by the assertion that the latter cannot exercise therein administrative jurisdiction.
DECISION: The appealed decision of November 11, 1969 is affirmed insofar as it found the accused, Loreta Gozo, guilty beyond reasonable doubt of a violation of Municipal Ordinance No. 14,
RATIO DECIDENDI: The Philippine Government has not abdicated its sovereignty over the bases as part of the Philippine territory or divested itself completely of jurisdiction over offenses committed therein. Under the terms of the treaty, the United States Government has prior or preferential but not exclusive jurisdiction of such offenses. The Philippine Government retains not only jurisdictional lights not granted, but also all such ceded rights as the United States Military authorities for reasons of their own decline to make use of.