At 8:00 AM I called up Amb. [Richard] Murphy by telephone to inform him that after he left the Philippine group met and agreed to inform him of the Philippine position:
- Leave the matter of jurisdiction unresolved but that the U.S. govt. [government] should agree to maintain legal hold of the U.S. servicemen jurisdiction over whom is in controversy until case resolved.
- Increase the compensation to the last [Henry] Kissinger figure of $ one billion
a. Increase military grant aid from $30M to $50M
b. Increase FMS from $220M to $300M
Maintain Security Support Assistance at $150M.
Maintain Economic Assistance at $500M.
In the alternative instead of an increase in military grant or FMS, an increase of the Security Support Assistance by SI 00.
Amb. Murphy said he has been unable to tie the economic aid (mostly AID [Agency for International Development]) now at the level of $85M to the military bases agreement. And anticipates difficulty on this score.
I insisted that this be put on record.
Last night, I also insisted that I be notified of entry into Philippine jurisdiction of nuclear powered vessels and nuclear weapons.
I informed everyone that I had been assured by the U.S. govt. repeatedly that there were no nuclear weapons in the Philippines.
It is unknown where this text comes from because this entry is missing.
Official Gazette for December 24, 1978: RP-US military bases talks—an off-and-on affairs the last two years—has been concluded. This was indicated by the order to four government agencies to move immediately to Clark where they will conduct their business beginning January 1, 1979. Agreement has already been reached on three Philippine demands: sovereignty over the bases, the appointment of a Filipino base commander, and the turnover of idle base lands to the Philippines.
PHILIPPINE foreign exchange reserves received a boost of $118.8 million this year from payments of multinational corporations operating in the country. Minister of Trade Troadio T. Quiazon, Jr., said the amount was remitted to the government by 170 multinational corporations, as required by Presidential Decree No. 218. The dollar remittances will cover the operational expenses of the corporations, such as office rentals, salaries, purchases of office supplies and equipment, Minister Quiazon said.