793.96/7–1349: Telegram
The Chargé in the Philippines ( Lockett ) to the Secretary of State
1730. Netherlands Minister Steenstra-Toussaint had conversation with President Quirino [in] Baguio just after Chiang’s departure July 12. Netherlands Minister has highly developed political sense and succeeded obtaining information some of which Quirino probably would not have conveyed any US representative. He July 13 passed on to me following:
- (1)
- Chinese Minister Chen Chih-ping, who made arrangements for Chiang’s visit, was anxious that it occur prior Quirino’s proposed trip US. Chinese hoped Quirino would convey their point view US authorities. Quirino told Toussaint he did not know whether US would invite him but felt Baguio talks might provide US additional incentive do so.
- (2)
- Date next meeting to be held Baguio not yet set. To be productive it should be preceded by meetings at technical level and by full discussion with US. Quirino feels US will be inclined help those who help themselves and will show interest and lend help countries concerned push forward their plans for Pacific Union. If not, plans would nevertheless go forward.
- (3)
- Countries to be invited next meeting include China, Korea (South), Thailand, Vietnam Government under Bao Dai, The Netherlands and, perhaps separately, Indonesia, but not Australia or Japan. Netherlands Minister told Quirino invitation Indonesia present time would be very unfortunate and confided me his Government does not “want another ECAFE”.1 (Department will recall Indonesian Republic representative seated at fourth session ECAFE upon which Netherlands delegation walked out.)
- (4)
- Quirino was interested learn Chinese military situation and his military subordinates had lower level discussions with members Chinese party but no definite agreements reached. Chiang stated that his total resources including aid supplied by US sufficient continue war at least 3 more years. Quirino told Toussaint [that] Philippines has nothing offer China as [China?] “has not fullfilled its commitments to us”.
- (5)
- Chiang did not raise question asylum but Quirino mentioned to him newspaper reports he would request assurance refugee Chinese Government might if necessary be established here. Chiang stated his Government would not leave China, and he himself would fight and if necessary die there.
- (6)
- Chiang did not discuss question moving Chinese monetary reserves to Philippines. However, Chinese bankers who visited Baguio told Toussaint members Chiang’s party discussed question with them. They stated Chiang’s subordinates interested possibility funds being-safeguarded here and wanted know what assurance could be given such funds would always be at disposal National Government authorities and would never be turned over Chinese Communist regime.
- (7)
- Romulo will be brought back Manila work on plans for Pacific Union. This would at same time remove him for a while from US “where he has been irritating people”.
- (8)
- Quirino was much impressed by Chiang and apparently was greatly flattered by his visit. Embassy might add that during his stay Chiang addressed message [to] Chinese in Philippines which K. C. Wu2 translated in part as follows: “You should give all your support to President Quirino who works closely with myself.”
Incidentally a responsible US newsman Manila informs Embassy Foreign Office officials confidentially circulating among reporters story that US inspired the Baguio meeting and if anything develops from it will join in.