896.51/1–1347: Telegram

The Ambassador in the Philippines (McNutt) to the Secretary of State


73. Deptel 38, January 10.2 Insistence on loan, which so far as now foreseeable could only be repaid in 1952 from new borrowing or reduction currency reserve, appears tantamount ad hoc decision in advance JFC study. Possibility repay or refinance from currency reserve certainly not ruled out, despite provisions reparations act 85 (mytel 459, September 263), but point is (1) Philippine Govt urgently needs cash now; (2) cannot commit itself repay in 1952 unless and until JFC study shows way, and is accepted by NAC and Philippine Govt; (3) long term loan was definitely in minds Chief Executives and Congressional leaders (Roxas4 never contemplated anything else). This telegram continues Embtel 69,5 drafted before receipt Deptel 38, January 10.

  1. See footnote 25, Foreign Relations, 1946, vol. viii, p. 943.
  2. Not printed.
  3. Manuel A. Roxas, President of the Philippines.
  4. Dated January 11, not printed.