Foreign Relations of the United States, 1950, East Asia and the Pacific, Volume VI

896.00/11–1750: Telegram

The Chargé in the Philippines (Chapin) to the Secretary of State

confidential

Manila, November 17, 1950—3 p. m.

1308. Melby [Chapin?] for Ambassador Cowen. As you are aware results of negotiations as finalized in memorandum agreement signed by President Quirino-Foster in Baguio¹ were not in accord with Department’s views particularly re ECA assuming agency responsibility for implementation Bell report. When Foster first arrived in capacity personal representative of President Truman his terms of reference as approved by President indicated broad negotiating authority with direct relationship to report. While ECA was not specifically mentioned in terms of reference Foster in memorandum approved by President expressed his purpose to explain to Quirino that other countries receiving aid from US had not considered US Congressional stipulation to certain commitments undertaken in bilateral agreements as either unique or discriminatory. The negotiations of a bilateral agreement is the last point in the Baguio undertaking.

In addition to sense of terms of reference the fact that Foster, specifically for Philippine negotiations, was surrounded only by ECA associates, gave negotiations ECA base from the start. We tried to keep Department informed over Armistice Day weekend when discussions were at Yulo-Griffin level and text for final negotiation between Quirino and Foster, together with points of outstanding differences were cabled Niact to Washington.² Unfortunately Department’s very definite and well taken views³ arrived and were made available to us in Baguio only after agreement had been signed.

While this highly regrettable, purpose this message is to suggest you recommend that State representative experienced in special techniques be sent Manila on next occasion to assist negotiations of bilateral agreement unless, with concurrence Philippine Government, some other device to formalize Baguio understanding is adopted in modification of now existing undertaking.⁴

Chapin

1. Supra.
2. Reference here to telegrams 1237 and 1238, November 11, from Manila, neither printed (896.00 (R)/11–1150).
3. Telegram 897, November 13, to Manila, not printed, which was approved by Under Secretary of State Webb, Assistant Secretary of State Rusk, and Deputy Assistant Secretary of State O’Gara, commented in detail upon the draft memorandum agreement on United States-Philippine economic cooperation. The Department of State was dissatisfied with the failure of the draft agreement to provide for an emergency session of the Philippine Congress to deal with urgent economic legislation. The Department of State also saw no reason why the agreement should specify the Economic Cooperation Administration as the agency through which the United States would deal with the Philippines on economic development. The Department of State was also convinced that the agreement must include a stronger statement concerning United States control of expenditures under the economic assistance program in order to ensure accomplishment of mutually agreed objectives (896.00(R)/11–1150).

4. Telegram 1288, November 15, from ECA Administrator Foster in Manila for the eyes only of Secretary of State Acheson, not printed, explained that the advice of the Department of State to omit mention of the Economic Cooperation Administration in the memorandum of agreement with the Philippines was only received after the agreement was signed. Foster thought the advice in any case would have been impracticable because the willing attitude of the Philippine Government was largely due to its favorable view of the ECA activities in Europe. Moreover, Foster felt he had a clear understanding from Secretary of State Acheson, informally from President Truman, and from Presidential Assistant W. Averell Harriman and Assistant Secretary of State Rusk that the ECA would administer any large-scale aid program to the Philippines (896.00 (R)/11–1550).

   In his telegram Toeca 856, November 17, from Taipei (where he had gone following the conclusion of his mission to the Philippines), not printed, Foster reported that President Quirino had personally pledged to convene a special session of the Philippine Congress in order to enact new tax legislation. Foster assured that there had been complete coordination between ECA and Embassy officials during the negotiations with Philippine representatives (Manila Embassy Files: 500 Foster Mission).