Foreign Relations of the United States: Diplomatic Papers, 1945, The British Commonwealth, The Far East, Volume VI

811B.24/6–2645

The Assistant Secretary of War (McCloy) to the Under Secretary of the Interior (Fortas)⁵⁷

Washington, June 26, 1945.

Dear Mr. Fortas: At a meeting held on 24 May 1945, and attended by representatives of the State, War, Navy and Interior Departments and of the Foreign Economic Administration, the Philippine Ad Hoc Committee adopted the report of its Working Group appointed to coordinate and recommend appropriate action on Philippine relief and trade resumption.

This report, in part, recommended (a) that the Army terminate its responsibility for importation of civilian supplies after completion of August loadings and (b) that the Foreign Economic Administration, in conformity with letter dated 22 December 1944, from the Director, Office of War Mobilization and Reconversion, designating it as the civilian agency responsible for supplying the requirements of the Philippines after termination of military responsibility, should make necessary supply and shipping arrangements to insure continuity of supplies to the Philippines after 1 September 1945.⁵⁸ These recommendations were adopted, subject to the approval of the Theater Commander.

This letter confirms advice previously given informally to you, as well as to representatives of the State Department and of the Foreign Economic Administration, that General MacArthur has approved the program for termination of military responsibility adopted by the Philippine Ad Hoc Committee and that termination in conformity therewith will be effected by military authorities.

While it is my understanding that the Philippine Commonwealth Government has been advised of the program, I believe that formal notice of military termination and of the successor program should be given to it by the appropriate agency of this Government. You have expressed the view, in which representatives of the State Department concur, that such notice should be given by the Department of Interior. Therefore, I shall appreciate the Department of Interior’s taking this action at the earliest possible date.

In the interest of a smooth transition and the uninterrupted flow of supplies into the Philippines,⁵⁹ the War Department, of course, will lend such cooperation as may be consistent with the discharge of its military responsibilities, and, in this connection, I suggest that the Foreign Economic Administration promptly make such arrangements with the International Division, Army Service Forces, as are necessary to effect the transfer of desired supplies available in the Army program under the terms of the Working Group’s report.⁶⁰

Sincerely yours,

John J. McCloy

57. Copy received by Assistant Secretary of State Clayton on June 27.
58. In a memorandum of July 26 of a conversation between Officers of the Department of State and the Foreign Economic Administration, J. Robert Schaetzel of the Office of International Trade Policy stated: “The Army has issued instructions to the Theatre Commander to continue the distribution of supplies until December 1, thereby assisting FEA in its responsibilities, and furthermore to make additional facilities, as needed, available after December 1. Determination of the need for additional Army assistance after December 1 would presumably be made by the FEA, Interior and State representatives in the Islands.” (611.11B31/7–2645)
59. For Department’s statement of August 10 on the authorization for American businessmen to enter the Philippines, see Department of State Bulletin, August 12, 1945, p. 250.
60. For statements by President Truman on assistance by the United States to the Philippines, released by the White House on October 25 and 26, see ibid., October 28, 1945, pp. 690–692.