[Enclosure]
National Security Council Staff Study
top secret
[NSC 84/2]
[Washington,] November 9,
1950.
The Position of the United States With Respect
to the Philippines
the problem
1. To determine the position of the United States with respect to the
Philippines.
analysis
United States Interest in the
Philippines.
2. The relationship, the military commitments, and the moral
obligations of the United States to the Philippines are unique. The
United States was responsible for the creation of the Philippine
state and the independence and stability of the Philippine Republic
are a fundamental interest of the United States. It is implicit in
the agreement of March 14, 1947 that the mutuality of interests of
the U.S. and the Philippines calls for common action, if necessary,
to maintain the security of the Philippines.4
3. The independence of the Philippines testifies to the recognition
by the United States that nationalism in Asia is a basic reality
which cannot be ignored. Failure of the Philippines to maintain
independence would discredit the United States in the eyes of the
world and seriously decrease U.S. influence, particularly in Asia.
Collapse of the present Philippine Government or any constitutional
successor might
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immediately and probably would eventually result in seizure of
governmental power by the communists. Failure of the Philippine
Government to maintain its pro-U.S. orientation would also probably
result in the early seizure of governmental power by the communists.
Such an eventuality would seriously increase the danger of communist
control on the mainland of Southeast Asia and in Indonesia.
4. It is the policy of the United States to strengthen its position
in the Pacific area, particularly with respect to the Philippines,
Japan and the Ryukyus. As Japan reassumes her position as an
independent Pacific nation, the United States favors the
establishment of friendly political and economic relations between
Japan and the Philippines and hopes that the simultaneous sound
development of these two nations will contribute to the stability of
the Pacific area.
U.S. Security Considerations.
5. The Philippines are an essential part of the Asian off-shore
island chain of bases on which the strategic position of the United
States in the Far East depends. The threat of further communist
encroachment in Formosa and Southeast Asia renders it imperative
that the security of the Philippines be assured. The United States
is committed to the external defense of the Islands and cannot
permit them to be taken by aggression or internal subversion. The
strategic importance of the Philippines to the United States is such
as to justify the commitment of United States forces for its
protection should circumstances require such action.
6. From the viewpoint of the USSR, the Philippine Islands could be
the key to Soviet control of the Far East. Soviet domination of
these Islands would seriously jeopardize the entire structure of
anti-communist defenses in Southeast Asia and the offshore island
chain, including Japan. Therefore, the situation in the Philippines
cannot be viewed as a local problem since communist domination would
endanger the United States military position in the Western Pacific
and the Far East.
7. From the military point of view, the immediate security interests
of the United States in the Philippine Islands include occupied
installations, certain bases under treaty provisions not now
occupied or in use, and U.S. armed forces personnel and material. In
addition, there are other areas in the Islands which may be needed
for operational use.
8. There is implicit in the United States-Philippine Agreement of
1947 authority for the United States to determine the garrison
strength required for the local protection of United States bases in
the Philippines.
9. Military intervention in the Philippine Islands would be justified
only on the basis of a clear, present, and over-riding military
necessity.
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Such a
necessity cannot now be demonstrated. Although there may be some
reason for concern regarding the local security of United States
installations in the Philippines, strengthening of the Joint U.S.
Military Advisory Group (JUSMAG),
Philippines, has been accomplished and it is expected that it will
contribute to the internal security of the country and to the
security of U.S. installations. Present conditions do not indicate a
requirement for stationing additional Army units there.
External Security.
10. External threats to the Philippines appear to be relatively
remote at this time. An enemy invasion does not appear feasible at
this time and, in all probability, would not be undertaken unless
Formosa had first come under communist control. In view of the U.S.
commitment for external defense of the Islands, a sound Philippine
military policy justifies maximum emphasis on effective forces
required for internal security and, under existing conditions,
minimum expenditure for defense against external invaders.
Internal Security.
11. The sole apparent military threat to the internal security of the
Philippine Republic at present lies in the guerrilla operations of
the Hukbalahaps (Huks), who now call
themselves “Peoples Liberation Army”. Although on the basis of
military factors alone the Huks lack the capability to acquire
control of the Philippines, their continued existence, growth, and
activities reflect the ineffectiveness of the Philippine armed
forces and the generally unsatisfactory social, economic, and
political situation in the Philippines.
12. The large Chinese minority in the Philippines is a potential
source of subversion. As the influence of the Chinese communists
becomes greater in Asia this important ethnic group might contribute
to a situation in which an armed and militant communist minority
could seize power from a corrupt and discredited regime.
13. Opposed to the Huks are some
26,0005
relatively well-armed troops who are supported by the civil police.
JUSMAG, Philippines, is now
engaged in assisting and stimulating the Philippine armed forces. If
these forces are trained, adequately equipped, and financed, they
can develop the military capability for the eventual elimination of
the Huks. In fact, the Philippine
armed forces, in accordance with present plans, should, by
aggressive and well-directed action and leadership, be able to
eliminate the Huks as a serious
threat within one year, provided that the Huks receive no substantial materiel support from
outside and provided further that the political situation in the
Philippines can be stabilized.
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Political Considerations.
14. Denial of the Philippines to communist control depends not only
upon military measures but even more upon prompt vigorous political
and economic action. The present situation in the Philippines is of
such gravity that military assistance may prove unavailing unless
solutions are found rapidly for the pressing political and economic
problems now facing the country.
15. The Philippine Government has lacked the courage and initiative
to take bold, vigorous measures to wipe out corruption in
government, to create a stable administrative system and to
encourage confidence in the government and in the future of the
country on the part of the people. Leadership in the Philippine
Government has been largely in the hands of a small group of
individuals representing the wealthy propertied class who, except in
isolated instances, have failed to appreciate the need for reform
and the pressures generated among the less prosperous and more
numerous groups of the population.
16. The leadership of the Philippine Government, while friendly to
the United States, is extremely sensitive and suspicious of actions
by the United States which would appear in Philippine eyes to be an
infringement of national sovereignty. Not only Philippine public
opinion but Asiatic opinion generally would prove particularly
sensitive to any step by the United States which could be
interpreted as implying a revocation or abridgment of Philippine
independence.
Economic Considerations.
17. Due to the effect of the war and the failure of the Philippine
Government to take adequate measures to increase productive
efficiency since the war, the economic situation in the Philippines
has deteriorated to a grave degree. The basic economic problems in
the Philippines are inefficient production and extremely low
incomes. Although substantial recovery in production occurred after
the liberation, agricultural and industrial output per capita is
still below the pre-war level, government finances have become
steadily worse and are now critical, and the international payments
position of the country is seriously deteriorated.
18. In agriculture, the area under cultivation was brought to the
pre-war level and the livestock population partially restored.
However, almost nothing was done to open new lands for the increased
population, to improve methods of cultivation, or to better the
position of farm workers and tenants.
19. The opportunity to increase production efficiency and to raise
the standard of living during the post-war period has been wasted,
largely due to misdirected investment and excessive imports for
consumption.
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Inequalities in the Philippines, always large, have become greater
during the past few years while the standard of living of the mass
of people has not reached the pre-war level. The profits of
businessmen and the incomes of large land owners have risen
considerably.
20. The deterioration of the economic system has caused a widespread
feeling of disillusionment among the population. Most agricultural
and industrial workers have no faith that the economic position can
or will be improved. Filipino as well as foreign businessmen are
fearful of the economic future of the country. The uncertainties
created by these doubts are strengthened by the recent tendency
toward unemployment.
21. The communist-led Hukbalahap movement has taken advantage of the
deteriorating economic situation and exploited the antagonistic
attitudes of the people toward the government in order to incite
lawlessness and disorder.
22. The President of the United States dispatched to the Philippines
an Economic Survey Mission, which has completed an exhaustive survey
of the Philippine economic situation and has submitted
recommendations for improvement.6 The
Mission’s recommendations contemplate governmental reforms,
reorganization and improvement of agricultural and industrial
production, increased rates of taxation, and more efficient
collection of taxes.
23. The Mission stresses the necessity of a program of widespread
social and economic reforms, which, coupled with increased
production and more competent management, the Mission finds
necessary to restore the elements of sound and stable government.
The Mission recommends, contingent upon the institution of these
reforms by the Philippine Government, a substantial program of
financial assistance through loans and grants to be carried out
under supervision by representatives of the United States
Government.
Method of Action.
24. The security interests of, the United States require that the
Philippines become and remain stable, anti-communist, pro-American,
and an example for the rest of the world of the intention of the
United States to encourage the establishment of progressive and
responsible governments. This entails the reassertion of U.S.
influence to the extent required to eliminate prevalent corruption,
provide efficient administrative services, and restore public faith
in the concept of government in the best interests of the
people.
25. Owing to the extreme sensitivity of Philippine officials and the
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people in general on
the question of their national sovereignty, the extent and manner in
which the necessary influence is brought to bear on the Philippine
Government to accomplish essential reforms presents to the United
States Government a most difficult and delicate problem. It is not
to be expected that broad social and economic reforms can be brought
about quickly or easily, even with the best of intentions on the
part of the Philippine Government. Extreme care must therefore be
exercised in the methods used to persuade the Philippine Government
to take the necessary action.
26. It would appear, however, that this Government has no choice
except to attempt to help the Filipinos bring about the necessary
reforms since to do nothing would result in disaster. It should be
made clear that disaster can be avoided by vigorous action on the
part of the Philippine Government accompanied by the economic and
advisory assistance which the United States will be prepared to
extend.
conclusions
27. The United States has as its objectives in the Philippines the
establishment and maintenance of:
-
a.
- An effective government which will preserve and strengthen
the pro-U.S. orientation of the people.
-
b.
- A Philippine military capability of restoring and
maintaining internal security.7
-
c.
- A stable and self-supporting economy.
28. To accomplish the above objectives, the United States should:
-
a.
- Persuade the Philippine Government to effect political,
financial, economic and agricultural reforms in order to
improve the stability of the country.
-
b.
- Provide such military guidance and assistance as may be
deemed advisable by the United States and acceptable to the
Philippine Government.
-
c.
- Extend, under United States supervision and control,
appropriate economic assistance in the degree corresponding
to progress made toward creating the essential conditions of
internal stability.
-
d.
- Continue to assume responsibility for the external defense
of the Islands and be prepared to commit United States
forces, if necessary, to prevent communist control of the
Philippines.8
