Foreign Relations of the United States, 1951, Asia and the Pacific, Volume VI, Part 1

694.001/8–351: Telegram

The Ambassador in the Philippines (Cowen) to the Secretary of State

secret
priority

Manila, August 3, 1951—5 p. m.

500. Harrington and I had five-hour talk with Quirino and Romulo this morning and presented language contained Deptel 390, Aug 1, 8 p. m.¹ Quirino found language less acceptable than that submitted fol receipt Deptel 332, July 27² which Quirino now wld gladly accept with insertion of word “presently” before the words “adequate to make complete reparation, etc.”

Altho Romulo is still studying draft we submitted this morning, Quirino is still insistent on insertion of word “presently” as indicated above and wld change the word “adequate” to read “complete reparations, etc.” Notwithstanding fact Quirino and Romulo agree Japs unable in immediate future to make reparations in form of goods, they both feel strongly door shld not be shut on possibility of receiving reparations eventually in form of goods, particularly since reparations will be subject to later negotiation and determination at that time as to whether Japs can pay and, if so, whether in form of goods or services.

I pointed out repeatedly that their insistence on goods was unrealistic and constituted radical departure from underlying philosophy of Article 14. Quirino and Romulo however insisted for purposes of local acceptance reparations clause that there shld be provision for payment in goods even though we all now believe payments in that form will not be realized. Quirino and Romulo say that they will be content if in course of negotiations Japs say no goods available and then seek agreement on services. Phil sensitivities also hurt by use of word “skills” which they take to imply Phils must look to Japan for skill since Phils lack such talent.

Romulo will discuss problem again with Quirino today or tomorrow and I am holding myself available to participate if requested. I will also keep in close touch with Romulo.

[Here follows the remainder of this telegram; for text, see editorial note, page 236.]

Cowen

1. In this telegram, drafted by Mr. Allison, the Department had suggested yet another revision of the reparations clauses, describing it as the “maximum which Dept can consider in order to meet Phil desires.” It follows:

   “Art 14(a). It is recognized that Jap shld pay reparations to the Allied Powers for the damage and suffering caused by it during the war. Nevertheless it is also recognized that the resources of Jap are not sufficient, if it is to maintain a viable economy, to make adequate reparation for all such damage and suffering and at the same time meet its other obligations.

   “Therefore, 1. Jap will promptly enter into negotiations with Allied Powers so desiring whose present territories were occupied by Jap forces [and?] damaged by Jap for the purpose of concluding agreements for making available, as reparations, the skills and industry of the Jap people in manufacturing, salvaging and other services to be rendered to the Allied Powers in question. Such agreements shall determine the commencement and period of time for making such reparations available and such other terms as may be appropriate; provided, however, that in any agreements to make reparations, where the manufacturing of raw materials is called for, they shld be supplied by the Allied Powers in question, and such agreements shall avoid the imposition of additional liabilities on other Allied Powers.” (694.001/8–151)

2. Ante, p. 1228.