Office of the Historian

325. Memorandum From the Deputy Assistant to the President for National Security Affairs (Aaron) to President Carter1

Washington, undated

SUBJECT

  • Philippine Base Agreement (C)

President Marcos telephoned Senator Inouye December 29 to say that he would conclude a base agreement if the United States agreed to increase security supporting assistance (SSA) by $50 million over a five-year period. This would bring the total five-year package to $500 million, the sum offered but refused in 1976. Marcos has stated publicly that he would like to conclude the negotiations by January 2. (C)

Senators Inouye and Glenn have strongly urged Secretary Vance to conclude the deal quickly on this basis. They point out that conclusion of the agreement would appeal to critics on Capitol Hill who feel we have turned our backs on Taiwan, and will be much more concerned with our Philippine bases as a result. Secretary Vance agrees with the Senators and has recommended that we move. Defense and AID also concur. (C)

NSC and OMB believe that you should proceed. They will work together to provide you early next week with a projection of the out-year budget implications. As you recall, the base agreement package, even at the original $450 million level, will require a FY–80 budget amendment and/or readjustment within previously approved totals. (C)

If you agree, Secretary Vance will send the attached telegram of instructions to Ambassador Murphy in time for Murphy’s next meeting with Marcos, which is scheduled for Saturday night Washington time.2 (C)

I believe we should take advantage of the leverage the normalization process has given us to conclude an important agreement which has eluded us for the past ten years. The impact will be significant not [Page 1057] only on Congress, but also on our friends and adversaries in East Asia. (C)

RECOMMENDATION:

That you approve the attached telegram of instructions to Ambassador Murphy.3

  1. Source: Carter Library, National Security Affairs, Brzezinski Material, Far East, Platt Chron File, Box 65, 12/78. Confidential. Sent for action. Printed from an unsigned copy. Platt sent the memorandum to Aaron under a December 30 covering memorandum. (Ibid.)↩
  2. The telegram is not attached. The instructions were sent in telegrams 328060 and 328069, December 30. (National Archives, RG 59, Central Foreign Policy File, D780540–0191 and D780540–0340) Murphy reported on the December 31 meeting with Marcos and his advisers in telegram 23123 from Manila, December 31. (National Archives, RG 59, Central Foreign Policy File, D790001–0181)↩
  3. Inderfurth wrote on the covering memorandum that Carter had approved the $50 million in SAA on Vance’s December 29 Evening Report and that Aaron no longer needed to send the memorandum to Carter. See footnote 1 above.↩