Paoay Lake
When the United States decided to normalize relations with the People’s Republic of China, I concluded that the danger of nuclear war was reduced.
Since the threat of nuclear attack, against which there could be a certain complete defense, was one of the principal reasons for our stalling on the military bases negotiations, I have now accelerated the negotiations including the on-going military panel discussions on an ad referendum basis.
Amb. [Richard] Murphy talked to me during the dinner he gave for Ex-Sen. now Amb. to Japan Mike Mansfield at the American Chancery on December 20, 1978 which we attended on the five points I had raised previously to be asked Washington.
And I invited him to my residence at Seaside on December 23, 1978. Also invited were Min. Juan Ponce Enrile, Min. Carlos P. Romulo, Sol. Gen. Estelito Mendoza, Gen. Romeo Espino and MGen. Fabian Ver. I prepared dinner. We met up to 10:00 AM. Then after Amb. Murphy left, the Phil. group conferred.
He gave us the five point definition on aggression, metropolitan area, constitutional process, MDA and MDT, Review.
We decided to just bypass the jurisdiction issue and to ask for an increase of $100M from the offer of $400M broken down as follows:
$30 [M]—MAP [Military Assistance Program] Grant—to increase to $50M
$220 [M]—FMS to increase to $300M
$150M—Economic Assistance Funds—as is.
The U.S. cannot connect the economic aid with the military bases agreement or negotiations.
In the morning of the 24th, before Amb. Murphy flew to Baguio to Amb. Mike Mansfield and his family. I conveyed our position to him.
When I was in Paoay Lake where I arrived on the 26th evening by car (more accurately on the 27th), Amb. Murphy requested to come and see me as he had the answers of Washington to my questions. I asked him to come for conference at 4:00 PM, Dec. 28th, Thursday, which he did bringing Lt. Gen. Leroy Manor, the head of their military panel.
Lt. Gen. Leroy Manor is known more as the former 13th Air Force commander and in Vietnam as the head of the missions that undertook the Sun Tae mission to liberate 200 American prisoners of war. Don Blackburn of the USAFP, NL [United States Army Forces in the Philippines – Northern Luzon] (CO [commanding officer] of the 11th Infantry Regiment in Cagayan and Kalinga in 1944-45) helped plan the operation. It was a complete success with the U.S. suffering no casualties but the prisoners had been transferred elsewhere.
We talked of this, our own guerilla movement, the communist threat in the 1950’s, the surrender of Gen. [Tomoyuki] Yamashita.
They saw the boat and raft races (very well attended the people trooping the 4th green of the golf course) in the lake.
And they played tennis at 6:00AM-7:00AM before we met again on the 29th.
Our conference lasted from 4:00 PM to 8:30 PM on the 28th. Imelda brought Amb. Murphy to see our old house in Batac which was celebrating its fiesta—as well as the Marcos Museum and the Phil. Independent Church.
We met again from 7:30 to 9:30 on the 29th.
We agreed to meet in the Malacañan Guest House on the 31st at 6:00 PM.
Amb. Murphy is a professional diplomat with an engaging personality. He is certainly more friendly than Amb. William Sullivan or even Amb. now Asst. Sec. of State [David] Newsome.
Since the interest shown by Pres. [James] Carter in the matter and the personal intervention of Sen. Daniel Inouye, I have gone out of my way to get the negotiations moving forward.
It is my intention to finish the agreement on amendments before the end of the year.
On the 28th, Amb. Murphy conveyed Washington’s answer that the MAP Grant can be increased by $20M to $50M, the FMS increased from $220M to $250M but no further increase. This was all the increase they would consider.
I, therefore, asked the Economic Assistance Fund to be increased from $150M to $200 [M]. This would make a total of $500 of funds Pres. Carter would include in his letter to me guaranteeing best efforts to obtain them from Congress.