CONFIDENTIAL
144034 MDTTAN 2573
THE END OF THE DAY. I REFERRED TO THE SECRETARY OF STATE'S
FORTHCOMING VISIT TO MANILA AND ASKED IF IT WOULD BE HELPFUL TO
SPEAK IN SUPPORT OF THE BASES. HE MIGHT FOR EXAMPLE MENTION THE
LONGSTANDING PRESENCE OF US BASES IN THE UK WHICH IN NO WAY
DIMINISHED OUR SOVEREIGNTY. SIGUR WELCOMED THIS IDEA. HE
THOUGHT IT WOULD BE VERY USEFUL IF THE SECRETARY OF STATE COULD
UNDERLINE THE CONTRIBUTION WHICH THE BASES MAKE TO GENERAL WESTERN (AND THEREFORE PHILIPPINE) SECURITY.
INTERNATIONAL ASSISTANCE FOR THE PHILIPPINES
4
·
SIGUR HANDED OVER A LETTER FROM SHULTZ TO THE SECRETARY OF
STATE (TEXT IN MIF TELELETTER NOT TO ALL). HE EXPLAINED THAT
THE US WAS EXAMINING THE BEST WAY TO CHANNEL TO THE PHILIPPINES
ADDITIONAL FUNDING TO PROMOTE ECONOMIC DEVELOPMENT (AND THUS
POLITICAL STABILITY). THERE WAS A NEED FOR FIRM CONTROL TO
OVERCOME BUREAUCRATIC OBSTACLES AND ENSURE PROPER USE OF FUNDS. HE ENVISAGED A MULTILATERAL EFFORT INVOLVING JAPAN, KOREA, EUROPE, AND AUSTRALIA. THE JAPANESE HAD BEEN POSITIVE: KOREA HAD EXPRESSED INTEREST. ONE PROPOSAL WAS FOR A PROMINENT AMERICAN
FROM THE INTERNATIONAL ECONOMIC COMMUNITY TO ACT AS SPECIAL
CO-ORDINATOR. THE WORLD BANK CONSULTATIVE GROUP MIGHT ALSO HAVE
A ROLE. THE INTENTION WAS TO INCREASE THE FLOW OF PRIVATE AS WELL AS PUBLIC FUNDS, AND STIMULATE MAJOR INVESTMENT IN THE PHILIPPINES. THE US MIGHT RAISE THE ISSUE AT THE TORONTO
ECONOMIC SUMMIT, IF PROPOSALS WERE MORE CONCRETE BY THEN.
5.
I EXPLAINED THAT, ALTHOUGH WE HAD INCREASED BILATERAL AID TO
DEMONSTRATE SUPPORT FOR MRS AQUINO, OUR HISTORICAL LINKS AND DEVELOPMENTAL PRIORITIES LAY ELSEWHERE. ANY CONTRIBUTION WE MIGHT MAKE TO AN INTERNATIONAL EFFORT WOULD INEVITABLY BE MODEST. WE WOULD STUDY THE US PROPOSALS AND DISCUSS THEM WITH EC PARTNERS. COLLECTIVELY, AN EC EFFORT COULD INVOLVE A RESPECTABLE SUM.
IT WOULD BE VITAL TO ENSURE MECHANISMS FOR THE PROPER USE OF AID, WHICH DID NOT EXIST AT PRESENT IN THE PHILIPPINES, AND TO ENCOURAGE PROGRAMMES STIMULATING SOCIAL REFORMS. THERE WAS
2
PAGE
CONFIDENTIAL
No comments yet.
Private notes are available after approval.