Today in Philippine History, November 14, 1950, the Quirino-Foster agreement was signed in Baguio City

On November 14, 1950, an agreement was signed between President Elpidio Quirino representing the Philippines and Honorable William C. Foster as personal representative of US President Harry S. Truman. Known as the Quirino-Foster Agreement it was signed in the Guest House, in Baguio City. Following the signing of the agreement Quirino and Foster issued the following joint statement:

President Quirino and the Honorable William C. Foster, as personal representative of President Truman, concluded their conversations today in Baguio by signing, with mutual gratification, an agreement which will constitute an instrument of immense usefulness for both the Philippines and the United States. The agreement is based largely on the general recommendations of the Bell Report. It indicates the plans of the Philippine Government to take immediate steps to improve its economy and the intention of the President of the United States to request substantial assistance for the Philippines as quickly as possible so as to enable the Filipino people to realize their aspirations for an improved way of life. It provides for the usual Marshall Plan type of operations for the benefit of the Philippine and American peoples. The agreement may well herald the beginning of a new and even closer partnership between the two nations in working towards a better common future in a more stable and prosperous world."

The following is the full text of the agreement signed 3 o'clock in the afternoon by President Quirino in behalf of the Philippine Government and ECA Administrator William C. Foster, representing Harry S. Truman, President of the United States:

PRESIDENT Elpidio Quirino and Honorable William C. Foster, as Representative of President Harry S. Truman, have agreed to recommend to their respective Governments a program covering the nature and form of the assistance and cooperation which the Government of the United States would have to extend to the Government of the Philippines to assist the latter in the solution of age-old social and economic problems gravely aggravated by the last war, and to bring about a new Philippine era of progress and plenty.

  1. It is realized that the Philippines must have greater production, a more diversified economy, and a higher family income for its industrial and agricultural laborers, all of which will greatly contribute to the enhancement of free institutions in the Philippines.

  2. The President of the Philippines, highly appreciative of the proffered help on the part of the President of the United States, to bring about social and economic well-being in the Philippines, announces his determination to lead his country in the attainment of this great goal, through total economic mobilization and the bold implementation of measures that will bring about a higher degree of social justice in the Philippines.

  3. The main recommendation of the report to the President of the United States by the Economic Survey Mission to the Philippines will be the basis for serious and immediate consideration by the Philippine Government in order to attain the objectives mentioned above, and may be considered a practical and sound point of departure in working out a program of social, economic, and technical assistance and cooperation.

  4. To this end, and considering that time is of the essence, the Council of State shall forthwith formulate a legislative program of the following measures for prompt consideration by the Congress of the Philippines:

    1. Tax legislation of an equitable measure designed to balance the budget and build up a surplus to gradually eliminate previous deficits and at the same time to help in counteracting the inflationary trend. It is estimated that, in order to be able to take advantage fully of United States aid, it will be necessary to fix as an immediate goal a total of not less than P565,000,000 in tax revenues. It is proposed that new and increased taxes go into effect January 1, 1951.
    2. A minimum wage law for all agricultural workers as the first step toward labor and rural legislation designed to raise the level of wages, especially in agricultural areas, and to improve the living conditions of agricultural and industrial workers.
    3. A bold resolution expressing the general policy of Congress to accelerate the carrying out by congressional enactment of the social reform and economic development measures recommended by the Economic Survey Mission to the Philippines.

  5. The United States Government agrees, at the request of the Philippine Government expressed herewith, to furnish with the least possible delay technical assistance particularly in the field of taxation and revenue collection, social legislation, and economic development, to act in an advisory capacity to the appropriate departments or agencies of the Philippine Government.

  6. Both Governments will appoint their respective committees to resume the negotiations for a Treaty of Friendship, Commerce, and Navigation. It is assumed that these negotiations will re-examine at the same time the provisions of the present Trade Agreement. It is realized that the Philippines needs special United States assistance in trade and privileges for several years.

  7. Each government will be represented in matters of social and economic assistance and cooperation by its own commission, as follows:

    1. A Philippine Council for United States Aid will represent the Philippine Government in its relationship with the agency selected by the United States Government (the ECA) to represent the assistance and cooperation program.
    2. The ECA will be the agency of the United States Government to collaborate with the Philippine Council for United States Aid. Its functions will be to advise with the Philippine Government, through the said Philippine Council, in planning the use of American social, economic, and technical assistance and cooperation, and in advising and assisting the Philippine Government in carrying out the general aims and recommendations of the Economic Survey Mission to the Philippines.

  8. In consideration of the determination of the Philippine Government to act boldly and promptly on the major program designed to fulfill the aspirations of the Filipino people, the President of the United States intends to recommend to the United States Congress the appropriation of the necessary funds that will be required for a social, economic, and technical assistance program which will require several consecutive years of substantial aid, envisioned in the report of the Economic Survey Mission at $250,000,000.

  9. It is understood that, subject to such modification as may be agreed upon by the two countries, the operation of the ECA in the program of the Philippines will be along general lines already established by the ECA in its relationship with other sovereign states.

  10. A bilateral agreement will be negotiated between the two governments to give force and effect to the pertinent paragraphs above.

Done in the City of Baguio, November 14, 1950.

(SGD.) WILLIAM C. FOSTER
Representative of President Harry S. Truman
(SGD.) ELPIDIO QUIRINO
President of the Philippines

Source:
American Chamber of Commerce of the Philippines, December 1950.

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