313. Summary of Conclusions of a Presidential Review Committee Meeting1

SUBJECT

  • Philippine Bases

PARTICIPANTS

  • State

    • Secretary Cyrus Vance
    • Mr. Richard Holbrooke Asst Secretary for EA and Pacific Affairs
    • Ambassador David Newsom
  • Defense

    • Dep Secretary Charles Duncan
    • Mr. Morton Abramowitz Dep Asst Sec for EA, Pacific and Inter-American Affairs
  • JCS

    • Lt General William Smith
  • CIA

    • Mr. Nathaniel Thayer National Intelligence Officer
  • Treasury

    • Mr. C. Fred Bergsten Asst Secretary for International Affairs
  • OMB

    • Mr. Randy Jayne
  • AID

    • Governor John Gilligan
    • Mr. David Bronheim Special Asst to the Administrator
  • White House

    • Dr. Zbigniew Brzezinski
    • Mr. David Aaron
  • NSC

    • Mr. Michael Armacost

SUMMARY OF CONCLUSIONS

The PRC met on February, 1978 to consider financial compensation aspects of Philippine base negotiations. Agreement was reached on the following:

—An amendment of the current Military Base Agreement would serve U.S. interests by placing our access to important facilities on a more stable and durable basis. This justifies a major effort in the coming weeks to resolve outstanding base issues and secure agreement with President Marcos on levels of compensation we will attempt to secure from the Congress in order to wind up negotiations, if possible, by April 14–15 when Vice President Mondale will visit Manila.2

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—We should include Security Supporting Assistance as a grant element in the Philippine compensation package. It was agreed that this would not constitute a precedent for other base negotiations.

—We should be prepared to include modest levels of MAP in the compensation package, but should phase out MAP as rapidly as practicable, e.g., in FY 1981.

—We should avoid linking our economic assistance package directly with the base negotiations, but within the framework of our Philippine aid program should fund additional ways of ameliorating deplorable economic conditions in areas directly adjacent to the major bases, i.e., Olongapo and Angeles City.

—Ambassador Newsom should be authorized to present an initial offer to President Marcos—following consultations on the Hill—to include in the period FY 80–85 up to $150 million in Security Supporting Assistance; $30–$50 million in MAP; and $200–$250 million in FMS credits. This should be presented not as a binding commitment but as levels of compensation the Administration will make every effort to obtain from the Congress. Within these broad guidelines, the negotiator will retain latitude to adjust the package to enhance its negotiability.

—State and Defense will brief key Congressional leaders immediately on the outlines of the amended agreement we envisage, indicating only in general terms the range of compensation we plan to propose to the Philippine Government.

Zbigniew Brzezinski 3
  1. Source: Carter Library, National Security Council, Institutional Files, 1977–1981, Box 68, PRC 056: Philippines Base Issues, 2/28/78. Secret. The meeting took place in the White House Situation Room. Carter initialed the top of the first page. No minutes of the meeting have been found.
  2. Mondale’s trip was postponed until May 2–4.
  3. Brzezinski initialed “ZB” above his typed signature.