395. Memorandum From Secretary of State Rusk to President Kennedy0
SUBJECT
- Special Education Fund, Philippine War Damage Legislation
President Kennedy’s memorandum of
August 12, 1963,1 regarding the special fund provided for in the
amendment (P.L. 88–94) to the Philippine War Damage legislation (P.L.
87–616)2 instructed me to submit by January 1, 1964, the United
States proposal for negotiations with the Philippines relating to this fund.
A proposal for these negotiations is enclosed.
We have not commented in our proposal regarding specific educational projects
which might be supported by the fund. At this stage, we prefer to retain
flexibility in this regard for negotiating purposes, particularly in view of
the fact that we do not know what the size of the fund will be and what
magnitude of projects it will be able to support. (The Foreign Claims
Settlement Commission hopes to have an estimate by the end of this
year.)
While we have not attempted to detail possible projects, we have had several
exchanges with Embassy Manila on this subject. In the event the special fund
reaches the earlier estimate of twenty to thirty million dollars, we are
tentatively planning to suggest to the Philippine Government that the fund
be used in support of the training aspects of land reform, for vocational
training, for improvement of the secondary school system and for support of
specific projects in the Philippine budget for education.
[Page 838]
Enclosure
SUGGESTED UNITED STATES PROPOSAL FOR ADMINISTRATION OF
SPECIAL EDUCATION FUND AUTHORIZED IN AMENDMENT TO PHILIPPINE WAR DAMAGE
LEGISLATION
I. Setting Up Account:
The account should be designated “Philippine Education Program” and
placed in the budget chapter “Funds Appropriated to the President”
between the Peace Corps and Public Works appropriations. This placement
is in accordance with the basic legislation which defines this activity
as a Presidential program. It will also avoid involvement with budgets
for the existing activities of the Department and the Agency for
International Development. This is consistent with the concept that the
program should be additive to present United States programs in the
Philippines, and not an extension of the educational exchange program of
the Department or of the development programs of the Agency for
International Development.
II. Administration of the
Account:
Responsibility for the administration of the account will lie with the
Bureau of Far Eastern Affairs of the Department of State, operating with
the assistance of the Bureau of Educational and Cultural Affairs and the
Agency for International Development.
III. Formulation and Administration of
Programs:
- A)
- The United States and the Philippines will negotiate and enter
into a general, bilateral agreement pursuant to which discussions
between the two governments will be carried out relative to specific
proposals for the use of the fund. The text of the proposed
agreement is enclosed.4
- B)
- The agreed proposals for the use of the fund will be worked out
between the Philippine Government and the Embassy, and will be
forwarded by the Embassy to the Department of State for final
approval.
- C)
- The Embassy, in formulating programs and developing projects
thereunder, and the Department, in considering them for approval,
will bear in mind the following:
- 1.
- It was the congressional intention that the fund should be
used to further educational and training projects which
serve to promote general development in the
Philippines.
- 2.
- The element of mutuality stipulated in the amendment will
be provided for by recognition that programs which
contribute to the economic development of the Philippines
are also to our advantage.
- 3.
- All possible steps will be taken to develop projects which
in substance are distinct from the Department’s Cultural
Exchange Program.
- 4.
- Insofar as is feasible, the impact on our balance of
payments should be minimized by favoring projects which will
extend over a period of years and/or involve purchases of
American goods and services.
- D)
- Administration of the projects shall be the primary responsibility
of the Philippine Government. Under the terms of the bilateral
agreement, the Philippine Government will undertake to furnish the
United States with an annual report covering the status of the
specific projects supported by the fund until such time as the
fund’s support for such projects has ceased.
