Foreign Relations of the United States, 1951, Asia and the Pacific, Volume VI, Part 1

694.001/6–1251: Telegram

The Chargé in the Philippines (Harrington) to the Secretary of State

secret

Manila, June 12, 1951—6 p. m.

3999. Embtel 3903, June 6.¹ Have just seen in strict confidence draft of letter Romulo proposes send Amb Dulles. Principal points are:

(1) Security safeguards against outflow of Commie forces from continental Asia and against repetition of aggression on Phils by remilitarized Jap, and

(2) Jap shld meet in reasonable manner requirements of Phils for reparations.

With respect security, draft letter recommends placing Formosa and Pescadores under UN trusteeship as basis interim solution for agreement as to which particular govt or people shld succeed to rights, titles and claims of Jap over Formosa. Ltr suggests UN need not now disturb present admin of Nationalist Chi over Formosa and Pescadores and stresses that Phil Govt views with grave concern any arrangement under which these islands might pass into unfriendly hands.

Also with respect to security, draft ltr elaborates on recommendation for UN supervision of Jap educational system for twenty years. A final point on security is developed in belief Jap shld accept right of UN to intervene for preservation and maintenance of supremacy of civil over mil authorities in govt of Jap for enforcement of any obligations of Jap under treaty, such right of intervention to last for twenty years from date effectivity of treaty. As precedent for right of intervention in affairs of another country, draft ltr refers to treaty between the US and Cuba and the Phil independence law establishing commonwealth.

Draft ltr lists reparations claims totaling $8,079,624,000 divided as fols:

(a) Physical damages $807,411,000;

(b) Loss of human lives $1,667,892,000, and

(c) Commandeered goods and services $5,514,321,000.

After statement of basis of arriving at foregoing figure, draft ltr suggests Phil Govt might reduce total claim to $6,527,260,500. Then fols discussion of reparations achievements and failures fol World War One.

Draft ltr urges language in peace treaty which wld make Phils sole exception to gen waiver claims for war damage and proposes creation of Reparations Comm consisting of one rep each from the US, the Phils and Jap with full powers to determine amt of reparations to be paid by Jap to Phils over period 25 years. Comm wld determine sources of payment of war reparations and to extent that comm might find that the reparations due from Jap are not within capacity of Jap to pay within period of 25 years, Phils wld waive unpaid balance. Annual payments wld not be fixed amt but amt that might be obtained from sources fixed and determined by Reparations Comm in form of percentages or taxes on various govt or natl incomes such as govt surplus, receipts from govt enterprises, excise taxes, income taxes, gross earnings of financial institutions, gross receipts on public utilities, tax on urban real estate property and share in profits of Jap exports to Phils, the raw materials of which come from Phils.²

A memo on Jap capacity to pay reparations has been prepared, contents of which are not known, but Phil Govt apparently is considering sending small technical body to Jap to gather additional info on this aspect of problem. Ltr makes point that US more concerned about welfare of Jap, still an enemy country, than she is of welfare of her ally, Phils, and adds that Phil Govt will give serious consideration to any study tending to prove Jap’s inability pay adequate reparations to Phil’s.

Since Romulo presently sick in hotel suite finalization of draft letter may be delayed few days. Emb believes Phil proposals in present form mainly designed satisfy domestic political considerations and that Romulo expects he will be forced recede substantially during course of negots.

Harrington

1. Not printed.
2. In the course of telegram 183, to Manila, July 16, not printed, the Department stated that Minister Romulo’s letter, dated June 15, was received June 20. (694.001/7–1351) No copy of the Romulo letter has been found in Department of State files, but comment upon it in various documents in file 694.001 for 1951 indicates that the draft outlined here by Mr. Harrington was similar to the letter as sent.