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

694.001/8–451: Telegram

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

secret
priority

Manila, August 4, 1951—1 p. m.

504. Philippines now agreeable accept language Deptel 390, Aug 1¹ with fol changes:

1. Inclusion word “presently” between words “not and sufficient” in second sentence Article 14a and substitute word “complete” for “adequate” in same sentence so that sentence will read “Nevertheless it is also recognized that the resources of Japan are not presently sufficient, if it is to maintain a viable economy, to make complete reparations for all such damage and suffering and at the same time meet its other obligations.”

2. Omission word “as” between word “available and reparations”² in first sentence Article 14a 1 and addition words “including” or (if Dept prefer) “particularly” between “reparations and skills” so that that part of sentence wld read “for the purpose of concluding agreements for making available reparations, including (or particularly) the skills and industry”.

Assume Dept can accept suggested changes in Article 14a, but proposed change in Article 14a 1 obviously opens door to reparations other than those exclusively with realm skills and industry, even though Romulo again this morning stated in effect that the door cld readily be closed by Japanese during reparations negotiations.

Alternatively cld Dept revert to language proposed in first sentence Article 14a 1 Deptel 332, July 27³ or any similar language which does not entirely preclude reparations outside of skills and industry.

Recto made his thus far most bitter attack against US foreign policy and US-Philippine relationship in address before Cebu Bar Association yesterday and reported in today’s Manila Times under caption “Sabotage of Japanese Reparations” and also given wide coverage other papers. Select portions text being sent you separately Embtel 503⁴ with full text by mail.⁵

Indication extent to which Quirino’s determinations in this matter are being swayed by Recto attacks is that he was finally dissuaded last night from previously adamant insistence on International Court proposal when it was pointed out to him that such inclusion in treaty wld be capitalized by Recto.

These latest Philippine proposals mark substantial and difficult withdrawal Quirino and Romulo from previous extreme position in face of strong nationwide support for definitive reparations agreement contemplating large payments in goods and cash.

Package deal including security bilateral is inherent in above. Early announcement agreement on reparations clause plus statement intention conclude defense alliance early date will largely dissipate current anti-American agitation.

[Cowen]

1. See footnote 1, supra.
2. Apparently meant to read “words ‘available’ and ‘reparations’”.
3. Ante, p. 1228.
4. Not printed.
5. In telegram 448 to Manila, August 6, drafted by Mr. Dulles, the Department stated in part that although changes proposed in numbered paragraph 1 of telegram 504 were acceptable, those in numbered paragraph 2 were not, since they would go counter to the “fundamental” U.S. position by leaving open indefinitely the question of monetary reparations. The United States was preparing an authoritative statement of its position in the matter. (694.001/8–651)