896.00/10–1750: Telegram
The Secretary of State to the Embassy in the Philippines
643. Urtel 930.1 Shockingly accurate accts contents Bell report2 already appearing US press (see NY Journal Com Oct 16) and will probably continue in increasing volume. To avoid losing effect surprise Dept desires that fol receipt final instructions, you present report to Quirino soonest together with Pres Truman’s covering letter3 which has been prepared for his consideration. One copy report airpouched [Page 1504] fourteenth. Additional copies and tax appendix will be airpouched eighteenth. If Pres approves letter, Dept will tel its text together with press release to be issued simultaneously Wash and Manila. Pls advise urgently your views as to date report, tax appendix, and letter shld be presented to Quirino and date and hour of release to press. In view foregoing we hope you are prepared to remain Manila until first round completed.
Phil Govt will unquestionably find report hard to swallow and will probably try desperately to stop publication. We strongly believe, and Bell agrees, it shld be published.
Recommendations in report are of course those of Bell and his mission. We anticipate however that final US position now being formulated will be in substantial agreement. In near future plan is US will state specifically what is expected of Phil Govt and what US Pres is prepared to recommend to US Congress if Phil Govt actually takes certain of the steps immed and agrees to undertake the remainder in reasonable time. Fol for ur info only.
A small staff will proceed to Manila to assist in explanation US position and recommendations and to assist Phil Govt in execution those recommendations it accepts. Joseph Dodge4 is being asked to head mission and Bernstein is being asked to accompany together with experts in finance, taxation, and possibly agriculture and labor. Group cannot possibly arrive before Nov one.5
As you know from previous communications Dept holds view with great conviction that no financial asst shld be extended to the Phils unless it undertakes to do those things which US Govt on basis of Bell Report specifies as requisite to a solution of the basic economic, financial and social problems which plague Phils. As you have so often pointed out and in which Mr. Bell has enthusiastically concurred, further financial asst of an unsupervised character to the Phil Govt on a continual basis will not encourage the Phil Govt to face up to those problems the solution of which is requisite to a stable anti-Commie society.
Phil Govt will unquestionably find recommendations unpalatable to swallow and painful to execute. Pres Quirino and his cabinet must ultimately understand however that unless those recommendations in form approved by US Govt are accepted and acted upon, financial asst from the US Congress will not, in Depts estimation, be forthcoming.
- Not printed; in it Ambassador Cowen stated that there were matters which required urgent discussion, and he requested authorization for immediate return to Washington for consultation (896.00/10–1650).↩
- Of October 9, p. 1497.↩
- See post, p. 1506.↩
- President and Director of the Detroit Bank: Financial Adviser to the Supreme Commander, Allied Powers (Japan), General MacArthur.↩
- Dodge declined the invitation of Secretary of State Acheson to head the special mission to the Philippines. William C. Foster was subsequently named to head the mission; see the editorial note, p. 1511.↩