Article III.
Spain cedes to the United States the archipelago known as the Philippine Islands, and comprehending the islands lying within the following lines:
A line running from west to east along or near the twentieth parallel of north latitude, and through the middle of the navigable channel of Bachi, from the one hundred and eighteenth (118th) to the one hundred and twenty seventh (127th) degree meridian of longitude east of Greenwich, thence along the one hundred and twenty seventh (127th) degree meridian of longitude east of Greenwich to the parallel of four degrees and forty five minutes (4 45') north latitude, thence along the parallel of four degrees and forty five minutes (4 45') north latitude to its intersection with the meridian of longitude one hundred and nineteen degrees and thirty five minutes (119 35') east of Greenwich to the parallel of latitude seven degrees and forth minutes (7 40') north, thence along the parallel of latitude of seven degrees and forty minutes (7 40') north to its intersection with the one hundred and sixteenth (116th) degree meridian of longitude east of Greenwich, thence by a direct line to the intersection of the tenth (10th) degree parallel of north latitude with the one hundred and eighteenth (118th) degree meridian of longitude east of Greenwich, and thence along the one hundred and eighteenth (118th) degree meridian of longitude east of Greenwich to the beginning.
The United States will pay to Spain the sum of twenty million dollars ($20,000,000) within three months after the exchange of the ratification of the present treaty.