896.00–R/2–2651: Telegram

The Ambassador in the Philippines ( Cowen ) to the Secretary of State

confidential

2550. For Melby, Lacy. During course our long meeting with President, Yulo, Checchi late this afternoon, Checchi stated with my prior concurrence, that he and I would regard enactment of corporate tax and exchange tax bills if not further emasculated, plus enactment of acceptable minimum wage bill plus revenue bills previously enacted as sufficiently substantial compliance with requirements Quirino–Foster agreement to justify us in recommending to State and ECA that implementation of agreement be begun through 15,000,000 now available.1 Checchi estimates that enactment these two revenue bills will be short of desired goal by 75 to 100 million pesos. I strongly urge that this be done and detailed reasons therefor will be set forth in timetable Checchi and I shall send tomorrow.

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I hope that Checchi has learned from mauling he has received since his ill-fated talk with Perez2 to work only through Yulo and avoid further direct political meddling. He seems contrite at the moment but don’t know how long this will last. I hope appointment administrator of stature can soon be made.

Cowen
  1. In ECA funds earmarked for the Philippines for fiscal 1951.
  2. See the document supra.