796.5 MSP/5–2154: Telegram

No. 363
The Chargé in the Philippines (Lacy) to the Department of State

secret

2635. Department please pass G–2. Following memorandum given me last night by General Cannon1 who is particularly eager that he “as source, be protected.”

Begin text: On 20 May 1954 I was invited by President Magsaysay attend Security Council meeting at headquarters, Armed Forces of Philippines. Present were President Magsaysay, Defense Secretary Cabahug, General Vargas, General Balao, and members General Staff.

Conference started by staff presenting to President two studies, one on matters he would discuss at a caucus with political party leaders, second, matters to be discussed with Secretary Wilson. President directed proposals be presented to him verbally with pertinent extracts being read. Staff appeared be greatly embarrassed my presence, hence I volunteered, if desirable for security reasons, I leave room, I would be happy to do so; whereupon President stated I was his military advisor and he desired I be fully informed on all military matters. Staff then started discussing terms of base agreement and security pact, indicating certain changes that should be made. President stated very firmly there would be no changes in wording of pacts; that Philippine Government had made treaties and agreements and would carry them out; that he would discuss with party leaders and with Secretary Wilson implementation of terms of agreements and treaties. He further stated he would discuss with political leaders conditions under which Philippine Government would enter into an Asian or Southeast Asian bloc.

[Page 607]

Captain Pargas, AFP G–3, was then directed go over matters which Armed Forces of Philippines were recommending President take up with Mr. Wilson. Captain Pargas read certain extracts from security treaty as background. He then said in view world conditions, it was deemed necessary that Armed Forces of Philippines be greatly increased and that it was desired to form seven divisions and five air wings; that Philippines would not be able to fund such a force and that $960 million would be required, both in hard and soft goods, from U.S. I was then asked by President to present my views on such a request. My comments were in substance as follows: That before serious consideration could be given, I would like to know why such a force was required; what intelligence studies had prompted their thinking; how such a force was to be used, whether within Philippines only, or external use; some details for creating such a force, such as construction of air bases, camps and stations; where manpower was coming from, what training programs would be required, amount of time required train crews, pilots, etc. I emphasized that such a sum could not be even given serious consideration without complete, detailed program with sound plan of implementation. President then stated to staff he felt such a request was beyond reason and would not even receive serious consideration from US Secretary. He then directed they get down to earth and be realistic in their thinking. He requested I express my views on a presentation which would be, in my opinion, reasonable for requesting additional assistance. My comments were in substance as follows:

(a)
Describe the force in being in Philippines and how it was to be used.
(b)
Requirement for additional forces and how they were to be used.
(c)
That the additional forces should be planned on a package basis such as one reserve division could be called up initially; that such a division would cost Philippine Government a certain amount for pay, food, allowances, etc., and would require equipment of a certain value; that Philippine Government could support and felt the need for two, four, six or some such number of divisions, that they could be called up within a stated period of time, and that if the US felt world conditions warranted such a force and was prepared support them financially, cost for number of divisions would be original package times number of divisions to be formed; that same approach should be taken on any plan to increase air force or navy.

President then asked whether Secretary would want to know if such additional forces created would be available for use outside Philippines. My comment was I felt US Secretary would be interested.

[Page 608]

A staff officer then compared terms of US–Philippines treaty with US–Australian [ANZUS?] treaty and with NATO treaty. It developed the main differences in these treaties were the US–Philippine treaty does not provide for a permanent standing committee. President then stated this was about what he was going to present to Mr. Wilson and he wanted staff to prepare notes along these lines, that they would meet again Monday morning.2

That US and Philippine Government appoint, under terms Article 3 of treaty, a standing committee.

That US encourage using Philippine industries to supply military items for other countries where US aid is being given, such as Formosa, Indochina, etc. Purpose of this to improve Philippine economy and working conditions throughout Islands.

That US agree furnish additional equipment so that at least one RCT and probably one division could be called to active duty immediately. At present time there is approximately enough equipment for two divisions within Philippines. He desired additional equipment for a third division be furnished.

President then stated he would meet with Secretary Wilson on Tuesday, that he desired Foreign Secretary, Defense Secretary and General Vargas be present during conference; that he assumed Wilson would have members of US staff present. In view Ambassador Spruance’s discussions with me on this subject, I volunteered I thought this large group being present initially at conference to furnish desired information, briefings, etc., might be desirable, but I recommended for his consideration that later he and US Secretary meet alone and that any decisions and firm commitments be made at that time. He neither accepted nor refused this recommendation. President then directed Under Secretary Crisol start preparations of a joint press release; that he wanted it distinctly understood there be no press release made by anyone except joint releases by himself and US Secretary, and that these releases would be in writing so as minimize possibility of misinterpretation and to try prevent misleading information appearing in press or being used by his political opponents.

Note: It is believed desirable that any source of information obtained at this Security Council meeting be very carefully guarded. I feel it highly desirable I attend, if invited. However, I feel President might well be criticized by having a non-Filipino citizen present. End text

Lacy
  1. Maj. Gen. Robert M. Cannon, Chief of JUSMAG, Philippines.
  2. May 24.