611.11B31/3–2045

Memorandum by The Acting Secretary of State to President Roosevelt

A representative of the Department has been invited to present to the Subcommittee [Committee] on Trade Relations of the Filipino Rehabilitation Commission the views of the Department regarding trade relations with the Philippines.65 Since this subject is of interest also to the Executive Committee on Economic Foreign Policy which you established under the chairmanship of this Department, it was referred for discussion to that Committee which endorses the following position of the Department:66

1.
An arrangement under which there would be free trade between the United States and the Philippines for as long a period as twenty years after the Philippines become an independent country would be inconsistent with the objective of this Government to obtain the removal of preferences and discriminations which obstruct the expansion of world trade and such an arrangement should not, therefore, be undertaken.
2.
It is recognized, however, that in establishing nonpreferential trade relations between the United States and the Philippines it may be desirable with a view to the economic rehabilitation of the Islands to provide for a period of declining preferences.
3.
It is further recognized that the rehabilitation of the Philippines,67 to which the United States desires to make, on a sound and [Page 1217] lasting basis, the fullest possible contribution, involves other important considerations, and it is proposed, after further study, to suggest other measures for promoting such rehabilitation.

I should appreciate knowing whether this meets with your approval.68

  1. Executive sessions were held by the Committee on Trade Relations of the Filipino Rehabilitation Commission on March 1 and April 11, 1945. The views of the Department of State were presented at the latter session by Assistant Secretary of State William L. Clayton. For Mr. Clayton’s statement, see “Report of Proceedings before the Committee on Trade Relations of the Filipino Rehabilitation Commission”, April 11, 1945, p. 57 (filed under 611.11B31/4–1145).
  2. ECEFP D–60/45, March 16, 1945, not printed.
  3. For documentation on this subject, see pp. 1211 ff.
  4. Marginal notation: “OK F[ranklin] D R[oosevelt].” In a memorandum of May 10, the Associate Chief of the Division of Commercial Policy (Willoughby) recommended to the Under Secretary of State (Grew) that a copy of the memorandum of March 20 be sent to President Truman as he “may not have been aware that President Roosevelt recently approved a policy statement on U.S.-Philippine trade relations endorsed by the Executive Committee on Economic Foreign Policy and that the Executive Committee, at the request of Senator Tydings as Chairman of the Filipino Rehabilitation Commission, is now engaged in formulating specific recommendations to implement the policy statement.” A copy was sent to President Truman the same day. (611.11B31/5–1045)