366. Telegram From the Embassy in the Philippines to the Department of State1

Secun 41. From Hoover.2 After thorough review of Phil aid program, Hollister and I are agreed that $4.2 million should be added to rural development program here and that this decision should be announced as soon as possible in order to achieve maximum impact on Phil elections Nov 8.

As to source of funds, every effort will be made by ICA Mission here to transfer various amounts from other projects but we are agreed program is fairly tight and most of money will have to come from elsewhere—either President’s emergency fund or reserves. I shall discuss this aspect of matter further upon return Washington.

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Meanwhile Ambassador will explore with Magsaysay question of best method of making and timing announcement and will recommend to Department. Our present thinking is that announcement should be made in Manila by Ambassador to achieve maximum effectiveness here.

  1. Source: Department of State, Central Files, 110.12–HO/10–1555. Secret; Priority.
  2. Under Secretary Hoover and John B. Hollister were in Manila as part of a tour of several Asian countries. In Secun 39, October 13, Hoover commented on the subject of additional U.S. aid to the Philippines:

    “It appears clear we have problem in supporting Philippines and keeping them in stable financial position. Huge figures which have been bandied about in past on subject of additional aid are obviously unrealistic and I have emphasized that congressional program framework leaves us with very little flexibility. However, I am hopeful that with some adjustments in 1956 program planning it will be possible to give some additional aid.” (Ibid., 110.12–HO/10–1355) Additional information on the HooverHollister trip is Ibid., 110.12–HO and Ibid., Conference Files: Lot 59 D 95, CF 534–CF 541.