Joint Statement Following Discussions With President Marcos of the Philippines.

I. AT THE INVITATION of President Johnson, President Marcos made a state visit to Washington September 14 to 16, 1966. This afforded an opportunity for the two Presidents to engage in the friendly and fraternal talks which have become traditional between the two countries.

2. President Johnson and President Marcos had a frank and cordial exchange of views on international developments of common significance as well as the cooperative arrangements which give substance to Philippine-American relations.

3. President Marcos set forth his vision of the Philippine future. He described the many frontiers that mankind faces--in space and in the ocean depths, on the farm and in the laboratory, in economic development and in expanding the capabilities of the young. He expressed his determination to move his country forward across these frontiers, with the exertion of Philippine energy and initiative and with the cooperation of friendly nations, especially the United States.

4. Scientific Cooperation. Both Presidents recognize the need of promoting cooperation in areas of science and technology and the mutual exchange of information and scientific knowledge for peaceful purposes. Such cooperation will furnish incentives to public and private resource initiative of both countries in enhancing and cultivating scientific and technological endeavors as a fundamental basis of a mutually beneficial relationship on science and technology.

5. Specifically, the two Presidents discussed recent developments in space technology. President Marcos expressed his desire to encourage greater training of Philippine scientists and engineers in the peaceful applications of such technology, and President Johnson undertook to offer appropriate fellowships for this purpose in U.S. institutions.

The considerable economic loss suffered annually in the Far East from typhoons was discussed by the two Presidents, who agreed that the regional initiatives undertaken by ECAFE and WMO to improve technical capabilities for typhoon damage control deserved full support. President Johnson offered the services of a United States meteorological team to develop a joint program of typhoon damage control in the Philippine area in concert with regional planning, and President Marcos agreed to the desirability of such a program.

Finally, the two Presidents noted the cooperative 'programs already started between the Philippine National Science Development Board and the U.S. National Academy of Sciences, and agreed that these programs should be expanded so that private and public research efforts can be applied to the advance of knowledge about growing food on the land and in the sea in the tropics. The two Presidents noted the expanded efforts now under way by the U.S. Government in the field of oceanography, in which it was agreed that the Philippines would participate fully.

6. Economic Development. One of the principal matters dealt with was the vigorous approach of the new Philippine Government to the problem of economic development. President Marcos reemphasized his 4-year development program to raise the living standards of the Philippine people, along lines already made public and discussed over many months. President Johnson was particularly encouraged to note the emphasis which President Marcos placed on improving the lot of the rural people through increased agriculture productivity, better income and meaningful land reform.

7. To support President Marcos' program of economic development and progress, the United States assistance program will be substantially increased during the coming year. This expanded effort will give priority to President Marcos' rural development and rice productivity program, including loans for irrigation projects and grants for other aspects of this program.

The two Presidents agreed to begin immediate negotiations for sales of agricultural commodities under a liberal credit arrangement over the next year, the proceeds of such sales to be used to support projects or programs to be agreed upon in such fields as irrigation, drainage and flood control, land reform, feeder roads, agricultural credit and farmer's cooperatives. The United States Government will also provide support for programs and projects to be agreed upon in agricultural research, training and productivity, and pest and disease control, cadastral survey and land classification.

Extensive discussions are now in progress on these programs and projects. In addition, a new self-help program is being launched pursuant to the Food for Peace program under which food will be provided as a grant to allow payment of wages in kind to rural workers engaged in local improvement projects, and a grant of feed grains will be made to stimulate the establishment and growth of livestock cooperatives.

U.S. assistance will also include a stepped-up malaria eradication campaign and planning for rural electrification, air traffic control and an integrated telecommunications network. The United States is prepared to extend credit to finance engineering feasibility studies to help develop other new projects for external financing.

8. Further Economic Matters. The two Presidents noted that their representatives are continuing to identify, on an urgent basis, additional ways in which the United States can be helpful in assisting President Marcos' initiatives in agricultural, industrial, and other fields. Both Presidents recognized that the size of the task to be done requires the active participation of all interested governments and international institutions. It was also recognized that the success of the renewed Philippine efforts depends to a great extent on raising the level of internal savings, both public and private.

9. The two Presidents recognized that orderly economic development required the full organization and utilization of available management talent. President Marcos described the measures he had taken to systematize economic development planning and indicated he would welcome additional United States technical assistance in this field. President Johnson agreed to make available a technical advisory team composed of both governmental and private experts for this purpose.

10. Recognizing that external assistance mobilized through the major international lending institutions would speed economic development in the Philippines, the two Presidents agreed on the desirability of closer consultations among all countries and international agencies having an interest in helping the Philippines. President Johnson assured President Marcos of full American support for a Philippine initiative along these lines, and of active American cooperation in such an effort. Pending completion of multilateral arrangements, the U.S. will provide assistance to the Philippines under a bilateral program.

11. As regards means for ensuring the fruitful participation of foreign private investors in Philippine development, the two Presidents emphasized the importance to the Philippines of a favorable investment climate to attract and hold foreign private capital. As a further means of stimulating new private capital flows to the Philippines, the Presidents were pleased to announce that an exchange of notes had taken place providing for an augmentation of the coverage provided under the current Investment Guaranty Agreement between the two countries.

12. Future Economic Relations. The two Presidents agreed that an expansion of trade between the Philippines and the United States would also contribute to the development and stability of both countries. They agreed that there should be an early beginning of intergovernmental discussions on the concepts underlying a new instrument to replace the Laurel-Langley Trade Agreement after its scheduled expiration in 1974. Intergovernmental discussions should be conducted through a joint preparatory committee to be set up before June 30, 1967. Both Presidents recognized the necessity of providing an adequate framework after 1974 for a fair and equitable treatment of new and existing investments, as well as for the expansion of trade opportunities between the two countries. The two Presidents agreed that the extension of parity rights under article 6 of the agreement would not be sought.

13. Offshore Procurement. The two Presidents agreed that the Philippines should participate on a full and equitable basis in supplying U.S. offshore procurement needs in Viet-Nam.

14. Mutual Security. Both Presidents recognized the strategic role which the Philippines plays in the network of allied defenses and agreed to strengthen their mutual defense capabilities. Both Presidents recognized that such defense construction projects as are presently under way and may be required in the future contribute to this end. President Marcos informed President Johnson of recent indications of resurgence of subversive activities, especially in Central Luzon. President Johnson pledged the continued assistance of the United States in the concerted drive of the Marcos administration to improve the well-being of the people and strengthen its capabilities for internal defense.

15. The two Presidents reviewed the current requirements of the Philippine armed forces for external assistance. In accordance with President Marcos' program to expand the Army's civic action capability, President Johnson was pleased to inform him that the United States would within this fiscal year provide equipment for five engineer construction battalions to be engaged in civic action projects contributing to internal security, and would consider furnishing equipment for five more such battalions in the next fiscal year. President Johnson also informed President Marcos that delivery of a destroyer escort for the Philippine Navy was anticipated next year. The two Presidents agreed to keep the U.S. Military Assistance Program under continuing review in order to ensure that the materiel and training supplied to the Philippine armed forces were kept appropriate to the changing requirements and missions of these forces.

16. The two Presidents pledged themselves to strengthen the unity of the two countries in meeting any threat to their security. In this regard, they noted the continuing importance of the Mutual Defense Treaty between the Philippines and the United States in maintaining the security of both countries. President Johnson reiterated to President Marcos the policy of the United States regarding mutual defense as stated by him and by past U.S. administrations to the Philippine Government since 1954.

17. The two Presidents noted that in the forthcoming Rusk-Ramos Agreement, the U.S. accepts President Marcos' proposal to reduce the term of the military bases agreement from 99 to 25 years. The two Presidents reaffirmed that the bases are necessary for both countries for their mutual defense, and were gratified with the progress being made in the negotiation and resolution of various issues related to the bases agreement in the spirit of harmony, friendship and mutual accommodation. They agreed that the base negotiations should be continued with a view to earliest possible resolution of remaining issues in the spirit of good will and cooperation which has characterized these negotiations to date.

18. The two Presidents noted the benefits to be gained if countries can share and profit from their common experiences in meeting Communist infiltration and subversion in all its forms in Southeast Asia. In this connection, the accomplishments of SEATO and of individual countries were discussed as well as means by which the Philippines and the United States might make an added contribution to this significant work. The two Presidents concluded that the usefulness of a center in the Philippines which might serve as a focal point for this work should be explored and proper actions pursued.

19. Veterans. The two Presidents noted that as a result of the recommendations of the joint commission which they appointed earlier this year, legislation to provide increased benefits to Philippine veterans, their widows, orphans and other dependents has been introduced in the U.S. Congress. President Johnson assured President Marcos of his full support of these measures and expressed his strong hope that they would be enacted in the near future.

20. President Marcos put the case of the Philippine veterans. President Johnson explained the problems and limitations from the standpoint of the United States. The two Presidents agreed that their representatives would discuss the means of restoring wartime pay to those recognized Philippine guerrillas who did not previously receive it and of compensating certain members of the Philippine Army for erroneous deductions of advanced salary from their wartime pay.

21. The two Presidents also agreed to adopt procedures which would minimize the adverse impact which additional payments to Philippine veterans might have on the U.S. balance of payments.

22. Special Fund for Education. The two Presidents agreed to put to effective and creative use the Special Fund for Education available from and pursuant to the U.S. War Damage Appropriations for the Philippines. They directed the joint panels established last spring to accelerate discussions already under way on project proposals, and concurred in the rapid implementation of projects as they are mutually agreed.

23. Developments in Asia. President Marcos discussed his efforts in concert with other Asian countries to bring about an all Asian political forum to which can be referred any crisis in Asia like the Viet-Nam conflict for settlement by conciliation or other peaceful means. President Marcos also stressed his country's recognition of Malaysia and Singapore and the acknowledgment by Asian countries of the Philippine role in helping pave the way toward solution of the Indonesian and Malaysian question. President Johnson reiterated his support for an Asian conference to settle the Viet-Nam war and reaffirmed to President Marcos that so far as the United States is concerned it is prepared for unconditional discussions or negotiations in any appropriate forum in an effort to bring peace to Southeast Asia. President Johnson reaffirmed that the basic U.S. purpose in Asia is to support the national aspirations of Asian peoples; the United States is ready to continue helping other nations which seek its assistance in improving the welfare of their peoples and in strengthening themselves against aggression.

24. The two Presidents conducted a frank and searching review of the problems of international security in the Pacific area in general and in Southeast Asia in particular. They were in complete agreement that the principal threat to peace and security in the region was the Communist war of aggression and subversion being waged against the government and people of South Viet-Nam. P. resident Johnson expressed his deep admiration as well as that of the American people for the action recently taken by the Philippines to send a civic action group of 2,000 men to assist the Vietnamese in resisting aggression and rebuilding their country.

25. The two Presidents reviewed events of the past few years which demonstrated the substantial progress being made in Asia toward regional cooperation. President Marcos noted, in particular, the recent meeting of the Foreign Ministers of Asia and the Pacific in Seoul, and the meeting of the Foreign Ministers from the Philippines, Thailand and Malaysia in Bangkok within the framework of the Association of Southeast Asia. The two Presidents noted that the establishment of the Asian Development Bank, with its headquarters in Manila, was a specific example of which imaginative statesmanship by Asian countries working together could accomplish. President Johnson welcomed the evidence of expanding cooperation in Asia and reiterated the willingness of the United States to assist and support cooperative programs for the economic and social developments of the region.

26. Mutual Objectives. Both Presidents agreed that the close personal relationship established between them during the visit will further strengthen the deep friendship and partnership which bind their two countries. President Marcos expressed his profound appreciation for the warm welcome and hospitality shown him and his party by President Johnson and the American people. The two Presidents recalled with pride the historic association of their two peoples who, once more, are standing side by side in the defense of liberty. They affirmed that their partnership reflects their long-standing and common dedication to the promotion of human rights and freedom.