DRAFTED BY P:PCHABIB:JNP APPROVED BY P:PCHABIB S/S- FVORTIZ
O 020118Z DEC 76 ZFF4
FM SEC STATE WASHDC TO AMEMBASSY MANILA IMMEDIATE
NODIS FOR AMBASSADOR FROM HABIB
E.O. 11652: GDS TAGS: MARR, RP, US
SUBJECT: PHILIPPINE BASE NEGOTIATIONS
1. THE SECRETARY MET WITH ROMULO IN MEXICO CITY YESTERDAY. THEY AGREED IN
PRINCIPLE ON THE COMPLETION OF THE BASE AGREEMENT IN AS SHORT A TIME AS
POSSIBLE WITH A FINANCIAL PACKAGE OF ONE BILLION DOLLARS DIVIDED AMONG
GRANTS AND CREDITS WITH THE TOTAL EQUALLY DIVED BETWEEN ECONOMIC AND
MILITARY AID. ROMULO
WILL BE COMING TO WASHINGTON ON DECEMBER 4 AT WHICH TIME THERE WILL BE A
JOINT ANNOUNCEMENT OF THE AGREEMENT IN PRINCIPLE, THE TEXT OF WHICH
APPEARS AT THE END OF THIS MESSAGE.
2. THIS WILL MEAN RESUMING NEGOTIATIONS IN MANILA ON AN URGENT BASIS. YOU
WILL BE GETTING OUR LATEST REVIEW OF OUR NEGOTIATING POSITION,
COORDINATED WITH DEFENSE, AS QUICKLY AS POSSIBLE.
3. ALL OF THIS IS BEING HELD CLOSELY UNTIL ANNOUNCEMENT. WE WILL KEEP YOU
INFORMED AND THERE IS NO NEED FOR ANY ACTION ON YOUR PART AT THIS
POINT.
4. FOLLOWING IS THE TEXT OF THE PROPOSED ANNOUNCEMENT:
BEGIN TEXT:
GENERAL CARLOS P. ROMULO,
SECRETARY OF FOREIGN AFFAIRS OF THE REPUBLIC OF THE PHILIPPINES, AND
SECRETARY OF STATE HENRY A KISSINGER MET ON DECEMBER 4, 1976, FOR FURTHER
DISCUSSION OF THE MILITARY BASE AGREEMENT NEGOTIATIONS WHICH HAVE BEEN
IN PROGRESS SINCE APRIL 12, 1976.
THE TWO SECRETARIES ANNOUNCED THAT AS A RESULT OF THEIR DISCUSSIONS IN
OCTOBER DURING WHICH THE BASIC LINES WERE WORKED OUT, THEY HAVE REACHED
AGREEMENT IN PRINCIPLE ON THE NATURE OF A NEW MILITARY BASE AGREEMENT
BETWEEN THE PHILIPPINES AND THE UNITED STATES.
THE UNITED STATES WILL HAVE USE OF MILITARY BASES IN THE PHILIPPINES IN
ACCORDANCE WITH THE TERMS OF SUCH AN AGREEMENT. AS PART OF SUCH AN
AGREEMENT, THE UNITED STATES WOULD PROVIDE, SUBJECT TO NECESSARY
LEGISLATIVE APPROVAL, OVER A PERIOD OF FIVE YEARS, THE SUM OF ONE
BILLION DOLLARS IN GRANTS AND CREDITS, THE TOTAL TO BE DIVIDED EQUALLY
BETWEEN MILITARY AND ECONOMIC ASSISTANCE.
IT WAS ALSO AGREED THAT THE NEGOTIATING PANELS IN MANILA WILL RESUME
THEIR WORK SHORTLY IN ORDER TO RESOLVE THE REMAINING ISSUES IN THE
NEGOTIATIONS, AND ARRIVE AT A MUTUALLY AGREED TEXT. THE FINAL AGREEMENT
WILL BE SUBJECT TO APPROVAL BY THE TWO GOVERNMENTS IN ACCORDANCE WITH
THEIR RESPECTIVE CONSTITUTIONAL PROCESSES.
END TEXT
ROBINSON
1 Source:
Library of Congress, Henry Kissinger Papers, CL 277, Memoranda of
Conversations, Chronological File, December 1976. Secret; Immediate;
Nodis. Drafted and approved by
Habib. At a
9:59 a.m. meeting with Ford and Scowcroft on December 3, Kissinger said, “We
will announce agreement in principle with the Philippines Saturday.
We offered them $1 billion and they asked for $2 billion. I said
okay, deal with Carter. Then I told Romulo he was crazy;
Carter would badger them on human rights, etc. He bought our
proposals in Mexico City totally.” (Ford Library, National
Security Adviser, Memoranda of Conversation, Box 21)