359. Memorandum From the President’s Assistant for National Security Affairs (Scowcroft) to President Ford, Washington, December 3, 1976.1 2
MEMORANDUM
THE WHITE HOUSE
WASHINGTON
INFORMATION
December 3, 1976
MEMORANDUM FOR: THE PRESIDENT
FROM: BRENT SCOWCROFT [BS initialed]
SUBJECT: Breakthrough in Philippine Base Negotiations
Philippine Foreign Secretary Romulo told Secretary Kissinger in Mexico City that his Government is prepared to accept the billion-dollar financial package we offered as compensation for the bases, on the assumption that all other issues are resolved to our satisfaction. The five-year financial package which you approved would be broken down as follows:
| Military Assistance | |
| Grant Aid | $200 million |
| FMS Financing | $300 million |
| $500 million | |
| Economic Assistance | |
| Development Assistance | $250 million |
| PL 480 Loans | $125 million |
| Consideration of Exim Bank Loans | $125 million |
| $500 million | |
| Total $ 1 billion |
It would appear that President Marcos has decided that our financial offer was good enough to nail down before the change in administrations. [text not declassified] Hopefully, Marcos will also share our desire to wind up the negotiations promptly. Some potentially difficult issues remain, however:
[Page 2]— We still have to ensure that Philippine negotiators agree to provisions which will allow us adequate operational freedom at the bases.
[text not declassified]
— We must square away language concerning the nature of our treaty commitment — though this should not be too difficult.
Next Steps
Secretary Kissinger is trying to work out a joint announcement which he could make with Romulo here in Washington on Saturday, December 4. (A copy of the proposed text is attached at Tab A.) State plans to brief key Senators and Congressmen (Sparkman, Humphrey, Case, Zablocki, Broomfield, and Fascell), and Defense is considering the possibility of informing the Armed Services leadership in the House and Senate.
State and Defense are working urgently on negotiating instructions to Ambassador Sullivan so that he will be ready to begin talks next week and wind them up as rapidly as possible.
- Source: Ford Library, National Security Adviser, NSC Staff for East Asia and Pacific Affairs Convenience File, Box 31, Breakthrough in Philippine Base Negotiations. Secret; Sensitive. Sent for information. Ford initialed the memorandum. The draft of the joint U.S.-Philippine statement is ibid., Presidential Country Files for East Asia and the Pacific, Box 15, Philippines (5)↩
- Scowcroft presented Ford with information on the Philippine base negotiations.↩