811.5211B/9–2045: Telegram
The Acting Secretary of State to the Consul General at Manila (Steintorf)
713. 1. Urtel 584 Aug 29. Please inform Dept of results your conversation with Osmeña and transmit text of Philippine Dept of Justice August 27 order.
2. Following is for your background information in case of further informal conversations with Osmeña.
Dept is opposed, in line with its general policy against restrictions, to the type of action announced by Philippine Dept of Justice, on grounds it would not be conducive to best economic interests of Philippines and other countries (notwithstanding fact that numerous American states have some type of restriction against acquisition of land by aliens). Although Dept sympathizes with problem faced by Philippines, it hopes Commonwealth Govt will take no extreme action at this time.
This Govt hopes to negotiate a commercial treaty with the Philippines which (in line with other similar treaties the Dept has entered into or hopes to negotiate in the near future) would grant on a mutual basis the right to lease land for designated purposes and provide that American nationals, corporations and associations shall have the right to acquire, own and dispose of real property in the Philippines, with a permissive exception as to those identifiable (through domicile in the case of natural persons and incorporation in the case of artificial persons) with American states, territories and possessions which do not accord national treatment in this respect to Filipinos. Time of treaty negotiations would be appropriate for thorough discussion of question by two govts.
Commonwealth statute 141, effective Nov 7, 1936 (amended by statute 615) seems to provide basis for restrictions on acquisition of land which was public domain at that time. Dept would be interested to know what statutory basis the Philippine Dept of Justice claims for restrictions on lands privately owned on Nov 7, 1936.
3. Dept will advise you further after studying information requested in paragraph 1 and immediately preceding paragraph.