MEMORANDUM FOR: THE PRESIDENT FROM: BRENT SCOWCROFT [BS initialed]
SUBJECT: Breakthrough in Philippine Base Negotiations
Philippine Foreign Secretary Romulo told Secretary Kissinger in Mexico City
that his Government is prepared to accept the billion-dollar financial
package we offered as compensation for the bases, on the assumption that
all other issues are resolved to our satisfaction. The five-year
financial package which you approved would be broken down as
follows:
Military Assistance
Grant Aid
$200 million
FMS Financing
$300 million
$500 million
Economic Assistance
Development Assistance
$250 million
PL 480 Loans
$125 million
Consideration of Exim Bank Loans
$125 million
$500 million
Total $ 1 billion
It would appear that President Marcos has decided that our financial offer was good
enough to nail down before the change in administrations. [text not declassified] Hopefully, Marcos will also share our
desire to wind up the negotiations promptly. Some potentially difficult
issues remain, however:
— We still have to ensure that Philippine negotiators agree to provisions
which will allow us adequate operational freedom at the bases.
[text not declassified]
— We must square away language concerning the nature of our treaty
commitment — though this should not be too difficult.
Next Steps
Secretary Kissinger
is trying to work out a joint announcement which he could make with
Romulo here in
Washington on Saturday, December 4. (A copy of the proposed text is
attached at Tab A.) State plans to brief key Senators and Congressmen
(Sparkman, Humphrey, Case, Zablocki, Broomfield, and Fascell), and
Defense is considering the possibility of informing the Armed Services
leadership in the House and Senate.
State and Defense are working urgently on negotiating instructions to
Ambassador Sullivan
so that he will be ready to begin talks next week and wind them up as
rapidly as possible.
1 Source:
Ford Library,
National Security Adviser, NSC Staff
for East Asia and Pacific Affairs Convenience File, Box 31,
Breakthrough in Philippine Base Negotiations. Secret; Sensitive.
Sent for information. Ford initialed the memorandum. The draft of the
joint U.S.-Philippine statement is ibid., Presidential Country Files
for East Asia and the Pacific, Box 15, Philippines (5)