361. Telegram 19864 From the Embassy in the Philippines to the Department of State, December 23, 1976, 0900Z.1 2
December
23, 1976, 0900Z
TELEGRAM
Department of State
MANILA 19864
R 230900Z DEC 76
FM AMEMBASSY MANILA
TO SECSTATE WASHDC 4255
MANILA 19864
E. O. 11652: GDS
TAGS: MARR, RP
SUBJECT: PHILIPPINE BASE NEGOTIATIONS
REF: (A) MANILA 18586, (B)
MANILA 19306
- 1.
- IN REF A, I REPORTED THAT MARCOS HAD OPTED TO DELAY NEGOTIATIONS ON U.S. MILITARY BASES UNTIL THE NEW U.S. ADMINISTRATION IS INSTALLED. I ALSO RECOMMENDED THAT DEPT. EXAMINE PROSPECT OF ELIMINATING MILITARY ASSISTANCE FROM THE NEGOTIATING PACKAGE IN FAVOR OF A GRANT ECONOMIC ASSISTANCE PROGRAM WHICH WOULD CONCENTRATE UPON DEVELOPMENT OF PHILIPPINE GEOTHERMAL POWER.
- 2.
- SHORTLY AFTER REF A WAS SENT, PHILIPPINE FOREIGN SECRETARY ROMULO ENTERED INTO TENTATIVE “AGREEMENT” ON A COMBINATION MILITARY-ECONOMIC AID PACKAGE IN RETURN FOR CONTINUED U.S. USE OF THE BASES. MARCOS SUBSEQUENTLY REPUDIATED THIS ARRANGEMENT, AND CONSIDERABLE CONFUSED PUBLICITY ENSUED. AS RESULT OF THIS CONFUSION, MARCOS HAS RESILED FROM HIS EARLIER PUBLIC STATEMENTS ON MILITARY AND ECONOMIC ASSISTANCE, AND HAS REVERTED TO HIS ORIGINAL DEMAND FOR AN ANNUAL CASH “RENTAL” TO BE PAID FOR THE BASES.
- 3.
- SINCE THIS WHOLE MATTER IS PRESUMABLY TO BE REVIEWED BY THE NEW U.S. ADMINISTRATION, I STRONGLY RECOMMEND THAT THIS REVIEW ALSO ENCOMPASS POSSIBILITY THAT U.S. PAY RENTALS FOR BASES IN THE PHILIPPINES. IN THE PAST, THIS PROSPECT HAS BEEN STRONGLY RESISTED, ESPECIALLY BY THE U.S. ARMED SERVICES WHICH PRESUME THAT THE RENTAL COSTS WOULD BE INCLUDED IN THEIR BUDGETS. BUT IT HAS ALSO BEEN SOMEWHAT EMOTIONALLY REJECTED FOR METAPHYSICAL REASONS WHICH I DO NOT FULLY UNDERSTAND. THE UNDERLYING THESIS OF THIS REJECTION IS THAT, FOR ALLIES, DEFENSE IS “MUTUAL” AND THIS RELATIONSHIP WOULD BE SULLIED BY A CRASS RENTAL TRANSACTION.
- 4.
- THIS ATTITUDE HAS NEVER BEEN SHARED BY LEADING MEMBERS OF THE U.S. CONGRESS, WHO SEE RENTALS AS A SOMEWHAT MORE SAVORY ARMS LENGTH RELATIONSHIP WITH A MARCOS ADMINISTRATION WHICH MANY REGARD AS A TAR BABY. SEVERAL KEY CONGRESSIONAL LEADERS HAVE URGED THIS EMBASSY TO AGREE TO RENTALS AND ELIMINATE THE GRANT MILITARY AID PROGRAM.
- 5.
- CONSEQUENTLY, IN RECOGNITION OF THE PHILIPPINE PREFERENCE FOR RENT, IN DEFERENCE TO SIGNIFICANT CONGRESSIONAL OPINION, AND IN VIEW OF THE PROBABILITY THAT IT WOULD CONSTITUTE A CHEAPER TRANSACTION, I SUGGEST WE TAKE A NEW LOOK AT OUR CURRENT POSITION IN OPPOSITION TO RENTALS. IF IT WOULD MAKE IT BUREAUCRATICALLY EASIER, WE COULD PERHAPS ARRANGE TO CARRY THE BUDGET FOR THE RENTALS AS A LINE ITEM IN THE STATE DEPT. BUDGET RATHER THAN IN THE MILITARY SERVICE ACCOUNTS WHERE THEY WOULD NORMALLY FALL.
SULLIVAN