896.00/10–2350
Memorandum by the Under Secretary of State (Webb) to the President
It had originally been planned to have a special emissary present the Bell Report to President Quirino about November 1. However, press speculation has given rise to numerous damaging rumors in the Philippines. One of them, to the effect that the Bell Report recommended devaluation, caused panic buying in the Manila stock exchange and drove the black market peso quotation to a new low. Consequently, I believe that Ambassador Cowen should present the Report to President Quirino as quickly as possible and that a few hours thereafter we should issue a summary of the Bell Mission’s Report and recommendations to the press both in Manila and Washington.1 Past experience has shown that information, no matter how confidential, communicated to the Philippine Government finds it way immediately to the press and often in distorted form. The true facts, as given in an official United States release, will be far less damaging than rumors. Publication of the full report can, of course, be delayed until the Philippine Government has had time to consider it.
The attached is a proposed draft of the letter to be presented by Ambassador Cowen to President Quirino at the time he delivers the Report.2 The purpose of the letter is four-fold: (1) To point out to President Quirino that the Bell Report, although serving as a basis for the United States Government’s program of economic aid, is still under study by the United States Government, which has not yet adopted an official position. Several of the Bell recommendations must still be considered by the National Advisory Council. (2) To make clear that the Philippine Government will have to undertake certain reform measures before you could recommend to the United States Congress a program of economic aid for the Philippines. (3) To convince President Quirino that the Bell Report is not intended as a slap in the face because of its frank appraisal of conditions in the Philippines. (4) To forestall any attempt of President Quirino to prevent the release of a summary of the Report to the press.
It is hoped to telegraph the text of the letter to Manila so that Ambassador Cowen may present the Report to President Quirino the very soonest possible.
- Because of the events reported upon in telegram 1074, October 27, from Manila (p. 1507), it was decided to release to the press on October 28 the full text of the Report to the President by the Economic Survey Mission to the Philippines (Bell Report); see footnote 1 to the Report, p. 1497.↩
- For the text of the letter to President Quirino, which President Truman approved on October 26, see infra.↩