Office of the Historian

430. Telegram From the Embassy in the Philippines to the Department of State1

Manila, August 28, 1957—11 a.m.

Secun 1. Visit Manila has so far produced little of specific interest. Called on Secretary of Foreign Affairs Serrano2 and President Garcia. Former expressed some concern respecting difference of views among leaders free world which made role Philippines who wished take position along side leaders somewhat difficult. He expressed hope greater consultation among leaders would prevent such embarrassments for Philippines in future. President Garcia expressed concern Philippine balance of payments situation and rapid reduction dollar reserves percent rate bank. He urged U.S. give consideration special low interest development loan for Philippines without restrictions specific projects. Indicated reluctance use Ex-Im Bank credit because interest rates too high and because of necessity buy American which for some projects required additional outlays nearly 40 percent. Likewise seemed disturbed Ex-Im Bank limited credit to various specific projects. President inquired as to possibility Congressional action on special Philippine loan to which replied possibilities such loans by Congress for specific countries highly improbable and that Congress would undoubtedly feel authorizations Ex-Im Bank and Mutual Security sufficient unless some unforeseen emergency arose. Likewise advised President U.S. cite familiar Philippine financial situation [Page 724] but could not presently discuss matter in view uncertainty action Congress on MSP.3

Laid two wreaths, attended two banquets, health still good.

Bohlen
  1. Source: Department of State, Central Files, 110.12–HE/8–2857. Secret. Under Secretary Herter arrived in Manila on August 27. He was accompanied by James P. Richards, who had been appointed Ambassador for the purpose of attending the Malayan independence ceremonies of August 31. Documentation on the Herter–Richards visit to the Philippines, Malaya, and several other Far Eastern countries is ibid., Conference Files: Lot 62 D 181, CF 899A through CF 905A inclusive.↩
  2. Felixberto Serrano replaced Manglapus as head of the Philippine Foreign Office.↩
  3. The Department of State prepared a position paper for Herter on the deteriorating financial situation in the Philippines prior to his visit. (Department of State, FE Files: Lot 60 D 514, Herter Trip to Malayan Independence Ceremonies, August 1957)↩