796.5–MAP/9–2651: Telegram

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

secret
priority

1176. Embtel 1166, Sept. 25.1 Gen. Pierson today supplemented his 6490–A, Sept. 25,2 to Dept Army with another telegram 6499, Sept. 26,2 recommending use of 5 million dollars of 10 million dollar fund now in his possession to enable Magsaysay recruit 6,000 additional troops. In face of heightened Huk activity, Pierson believes it highly desirable give Magsaysay at this time the assistance he finds necessary. Otherwise, Magsaysay will be obliged await congressional appropriation at earliest in Feb.

Assurances have been received orally from both Magsaysay and Neri that Quirino supports proposal and will make every effort induce Congress appropriate equivalent sum either to repay JUSMAG or for construction program for which these funds otherwise would have been used. Assurances also received that Congress will be asked to appropriate funds to meet continuing support additional troops as long as needed thereby removing obligation of US Govt to guarantee troop pay and allowances implied by original grant. Neri prepared exchange notes in foregoing sense.

Financial capacity of Phil Govt to support expense additional troops cannot be predicted with complete confidence. However, believe Phil Govt should be able support those expenses provided it does not authorize large new expenditures for other purposes, and provided prices of major Phil exports do not decline below Aug 1951 levels. Decline export prices would force reduction imports and consequently taxes related to imports. Impossible appraise likelihood Phil Govt will authorize large new expenditures but it will be recalled Bell mission recommended increased expenditures by Phil Govt for various purposes (Embtel 1048, Sept, 14).1

Pierson and I are aware original 10 million dollar fund was not intended to be used as means of increasing strength Phil Armed Forces but in view of worsened Huk situation, we believe matter should be submitted for consideration without delay, notwithstanding Deptel 923, Sept. 19, 5 p. m.3 We are satisfied that Magsaysay’s proposal is motivated solely by Huk situation and is not related to forthcoming elections for which ROTC units will probably be used.4

Harrington
  1. Not printed.
  2. Not found in Department of State files.
  3. Not found in Department of State files.
  4. Not printed.
  5. See footnote 1 to telegram 1075 from Manila, September 18, p. 1566.
  6. Documents in file 796.5 for 1951 indicate that the Philippine Government renewed its proposal for altering the use of budgetary assistance several times during the Fall of the year. With a letter of December 29 to Mr. Acheson, Acting Secretary of Defense Foster enclosed for the former’s concurrence his draft letter to the President, which reads in part: “I consider that the increase of 6,000 troops is desirable in order to improve the effectiveness of the Armed Forces Philippines in suppressing the existing threat to the internal security of the Philippines posed by the Communist-led Hukbalahap movement. Such use of these funds would not be within the purpose stated in your letter of 9 may 1951. However, I recommend your approval of the diversion of $5 million dollars of these funds for this purpose.” (796.5–MSP/12–2951) For excerpt of the letter of May 9, see footnote 3, p. 1535.