840.50 UNRRA/8–945: Telegram
The Secretary of State to the Ambassador in the United Kingdom (Winant)
6771. For Clayton. Reference ur 8011 August 9.65 Commonwealth Govt has taken no steps to consult US regarding financial question involved in its request for UNRRA assistance. In absence of any discussions we have no information extent of Philippine request or basis on which it attempts to justify status as non-paying govt. Filipinos have previously been informed that 15 million dollars was available in War Dept to be turned over to Commonwealth Govt for relief purposes upon its request but no request has been received. No definite or final plans have been developed by Philippine Rehabilitation Commission but on June 7 Senator Tydings66 outlined a relief program which included a proposed gift of $100,000,000 for rehabilitation purposes together with a 3-year loan to supplement Philippine Govt revenues.67 It is anticipated that Congress will give the whole matter prompt consideration when it reconvenes. The case for such assistance might well be prejudiced with Congress if an UNRRA program had been approved.
There is a large circulation of pesos at present time which are interchangeable with dollars. Filipinos would have dollar funds to finance such supplies as may be sold for pesos in the Commonwealth whether such supplies are furnished through private channels, which US is attempting to encourage, or by UNRRA. In event of UNRRA imports, govt would have available for payment to UNRRA dollars equivalent to amount of pesos it received from sale of UNRRA supplies and retired from circulation.
It is view of Dept that Filipinos should approach US with reference to their relief needs rather than attempt to secure UNRRA assistance. [Page 1012] Interior indicates that it is not prepared to endorse Philippine request since matter was not discussed with us beforehand and no information is available.