896.51/9–1446: Telegram
The Acting Secretary of State to the Ambassador in the Philippines (McNutt)
361. Urtel 371 Sept 14. Please advise Pres Roxas that Congress authorized the extension of credit by RFC to Phil Govt only “upon such terms and conditions as the Reconstruction Finance Corporation after consultation with the National Advisory Council on International Monetary and Financial Problems shall deem to be warranted by the financial position of the” Phil Govt. The US Govt regrets that it will be impossible for RFC and NAC to complete by Sept 18 the necessary consultation on Roxas’ request for an immediate credit of $25 million. Suggest to Roxas that to facilitate consultation, requests for credit advances should be accompanied by data concerning current cash position of Phil Treas, revenues and expenditures of Phil Govt for each month since Jul 1 1946 and anticipated revenues and expenditures for period for which credit is deemed necessary. It would be advisable for Phil Govt to file each request with supporting data at least 3 weeks prior to date when credit advance is deemed necessary, to provide adequate time for consultation. If Phil Govt will provide the necessary data supporting the request for a $25 million advance, RFC and NAC will be able to reach decision within 3 weeks after receipt of data.88
In meantime, if you consider public statement necessary to sustain confidence Phil public you are authorized to state that it is your understanding that US Govt will give prompt consideration to requests for advances under the credit authorization provided by the US Congress, when and as needed to meet essential expenditures of Phil Govt.
Re Treasury tel and urtel concerning currency requirement,89 Dept concurs in your view and that of Treas experts that it would be unwise for Phil Govt to change currency reserve requirements at this time. Dept hopes expression this general opinion will suffice to influence Roxas against action. Detailed comments urtel 363 Sept 13 and 386 Sept 1790 will follow soon as possible.
- In telegram 516, October 5, from Manila, Mr. McNutt reported a formal note from the Philippine Government requesting an immediate advance of $25,000,000 and submitting detailed supporting data as requested. He said he was sending these papers by air mail. (896.51/10–546)↩
- See telegram 349, September 13, p. 915.↩
- Latter not printed.↩