Foreign Relations of the United States, 1961–1963, Volume XXIII, Southeast Asia

390. Memorandum From President Kennedy to Secretary of State Rusk⁰

Washington, August 12, 1963.

I have today approved an amendment to Public Law 87–616¹ concerning payment of Philippine War Damage Claims which establishes an appropriation account in the United States Treasury to be used as determined by the Presidents of the United States and Philippines “for the purpose of furthering educational exchange and other educational programs to the mutual advantage of the Republic of the Philippines and the United States.”²

In light of the above, I request that you prepare for my consideration the United States proposal to the Philippines regarding the setting up of the appropriation account, its administration, and the formulation of programs to be supported by it. The United States proposal should reflect the following:

1. The intent of the Congress that the programs be broadly conceived, covering not only educational exchange but education and training in the Philippines in the widest sense.

2. The element of mutuality as stipulated in the amendment.

3. Arrangements for coordinating the formulation of the programs with the Philippine Government.

4. The relationship of these programs to other programs supported by the United States.

5. The effect of this program on our balance of payments situation during the next two years and to what extent this may be minimized.

In view of the probable relationship of activities supported by the new appropriation account with programs of other United States agencies, I request that you keep the Director of the Bureau of the Budget informed as this matter goes forward.

I request that you submit to me by January 1, 1964, the complete proposal for negotiation with the Republic of the Philippines.

John F. Kennedy

0. Source: Department of State, EA/Philippines Files: Lot 66 D 502, POL 27–9 War Damage. No classification marking.
1. See Document 375.
2. In a public statement on July 31, the Department of State welcomed this Fulbright–Hays Amendment. The Department noted that it would provide equitable settlement of claims under $25,000 and the balance would go into an education fund. For text of the statement and the relevant portion of P.L. 88–94, see American Foreign Policy: Current Documents, 1963, pp. 829–831.