896.51/7–3146: Telegram
The Acting Secretary of State to the Ambassador in the Philippines (McNutt)
321. For McNutt from Acting Secretary Clayton and Secretary Snyder.
Re Deptel 177 Aug 9 and Embtel 222 Aug 21.78 Serious consideration given your proposals composition Joint Commission. Because of special needs here however State and Treasury jointly propose that American-Philippine Financial Commission consist of three American and three Filipino members with co-chairmanship. American members to include a representative of State as co-chairman, Treasury, and Federal Reserve Board. Expect American delegation will have additional staff members to advise chairman on specific technical problems. Terms of reference of Joint Commission as follows: To consider the financial and budgetary problems of the Philippine Government and to make recommendations thereon to the two governments, with reference to tax system and administration, budget, public debt, currency and banking reform, exchange and trade problems, reconstruction and development. Please inform Philippine [Page 911] Government that Commission cannot be empowered to consider application for Eximbank loan as Eximbank and NAC cannot delegate this responsibility. However, findings and recommendations will be brought to attention of Eximbank and NAC and will be utmost value in their consideration of specific action.
Request you consult with Phil Govt with view to obtaining concurrence in above proposals and early formation and activation of Commission. You will be advised names of American members when designated and probable date of departure. In view of exchange correspondence between President Truman and President Roxas last month on this question, it is desired here that arrangement go forward with all possible speed. Please advise promptly of all developments.79