417. Memorandum of a Conversation, Department of State, Washington, June 19, 19581
SUBJECT
- Philippines—The Dollar Devaluation Claim
PARTICIPANTS
- United States
- Secretary Dulles
- Deputy Secretary of Defense Donald Quarles
- Mr. Samuel Waugh, President, Ex-Im Bank
- Deputy Under Secretary Robert Murphy
- Deputy Under Secretary Douglas Dillon
- Assistant Secretary W. S. Robertson
- Ambassador Charles E. Bohlen
- Assistant Secretary of Treasury T.B. Coughran
- Dr. Raymond T. Moyer, Regional Director, ICA
- Mr. John M. Leddy, Special Assistant
- Deputy Assistant Secretary Gardner Palmer
- Mr. John Gordon Mein, Director, Office of Southwest Pacific Affairs
- Philippines
- President Carlos P. Garcia
- Ambassador Carlos P. Romulo
- Mr. Florencio Moreno, Secretary of Public Works & Communications
- Mr. Jesus Vargas, Secretary of National Defense
- Mr. Dominador Aytona, Commissioner of the Budget
- Mr. Miguel Cuaderno, Sr., Governor, Central Bank of Philippines
- Mr. Eduardo Romualdez, Chairman, Rehabilitation Finance Corporation
The Secretary stated that the President and the Executive Branch of the United States Government had decided to seek Congressional action to appropriate approximately $24 million claimed by the Philippines as a result of the 1934 devaluation of the dollar. President Garcia asked whether there was a real possibility of getting Congress to appropriate this sum. The Secretary answered that Congressional sentiment was yet undetermined because the Executive Branch had resolved its own position only that morning and had not yet had an opportunity for informal preliminary discussions with Congressional leaders. Ambassador Romulo asked whether the Executive Branch would make its recommendation for Congressional action in this session. The Secretary answered that if preliminary discussion showed that the proposal would fall on receptive ground, the Executive Branch would recommend Congressional action in this session. He pointed out, however, that premature public discussion of this claim before informal discussions had been held with Congressional leaders might well prejudice the appropriation’s future in Congress.
Mr. Robertson pointed out that the dollar devaluation claim had a very long and complex history in Congress. Although the law authorizing payment of the claim had been passed in 1934 by both houses of Congress and signed by the President, the responsible committees of Congress had refused to appropriate the funds authorized on the grounds that they saw no evidence that the Philippines had suffered a loss. On the other hand, various attempts to repeal the authorizing law had also died in committee. The Executive Branch of the government will begin tomorrow morning to do the necessary spade work but we have no idea of Congressional attitude. He pointed out that the Executive Branch’s recommendation would be made by the President, Secretary of State, Secretary of the Treasury and all other interested officials of the Executive Departments. He stated that we are hopeful that we can get a decision from Congress. He recalled that in 1948 the Department of State, in replying to a Philippine request that the claim be [Page 882] paid, had stated that further Executive Branch action in Congress seemed fruitless. He emphasized that today’s action represents a reversal of that earlier decision.2
- Source: Department of State, Secretary’s Memoranda of Conversation: Lot 64 D 199. Secret. Drafted by Brand, who is not listed among the participants.↩
- The U.S. Government satisfied this Philippine claim by paying $23,862,751 on August 4, 1959. See Department of State Bulletin, August 24, 1959, p. 279.↩