611.9631/12–1046
Memorandum of Conversation, by Mr. Ellsworth C. Carlson, of the Division of Commercial Policy
| Participants: | Ambassador McNutt |
| Messrs Gay, CP; Setser, CP; Carlson, CP | |
| Mr. Ely, PI |
Mr. McNutt said that negotiation of the treaty of friendship, commerce, and navigation would have to come after the March 11 plebiscite on the constitutional amendment required in the Trade Agreement. The two instruments were closely related. Because of the reference to the Trade Agreement in the Protocol of the Treaty, negotiation of the latter could not precede final settlement of Trade Agreement questions. Mr. McNutt did not think that any difficulties [Page 936] would be encountered in the treaty negotiations; the Philippines would probably accept the treaty in the form in which it was presented by the United States Government.
He said that the Department could proceed on the assumption that the constitutional amendment would be approved by the plebiscite. President Roxas had predicted that 1½ million votes would be cast, of which about one million would be in favor of the amendment. Mr. McNutt expressed the view that the United States President would not be obligated to terminate the Trade Agreement if the amendment was rejected.
Mr. McNutt implied that the provision of the Trade Agreement giving the President of the United States the right to terminate the Agreement if American citizens or business enterprises were in any manner discriminated against (paragraph 4 of Article X of the Agreement; Sections 404 and 501 of the Philippine Trade Act) should not be used to force the Philippines to grant American citizens and business organizations national treatment. He said that nationalistic measures which had been introduced in the Philippine Congress were directed at the Chinese rather than at Americans. President Roxas was taking a strong stand against such measures; so long as Mr. Roxas was President, nationalistic measures would not be adopted.
Mr. McNutt praised the statesmanship of President Roxas. He predicted that Mr. Roxas would be President for eight years (two terms). Under the leadership of President Roxas, the Philippines had thrown its lot with the United States.