Reagan Asks for $150 Million in Additional Aid to Philippines

The Reagan Administration asked Congress on Wednesday for an additional $150 million in economic and military aid to the Philippines for fiscal 1986, saying that “the process of reform is beginning” under the leadership of President Corazon Aquino and is “a very good bet indeed.”

Congress has already approved $234 million in aid to the Philippines for the current fiscal year, and with the new request this would mean a total aid package of $384 million.

The Administration also asked for the accelerated disbursement of $405 million in previously appropriated economic aid that had been scheduled to be released in stages.

“The Philippines has a pretty decent situation to build upon economically,” M. Peter McPherson, administrator of the Agency for International Development, told reporters. “Their economic situation is pretty good. If we can disburse substantial monies within the next year, we think we can see some definite economic impact.”

He added: “It will allow this government to make economic reforms to form the basis of a strong economy.”

Reallocation of Funds

McPherson said that the supplemental 1986 request of $100 million in economic aid and $50 million in military aid will be a reallocation of funds within the existing Defense Department budget. “It will be offset to remain within overall budget totals,” he said. “It will not be new money.”

The $100 million in economic aid will be allocated “for private sector agriculture,” he said, while the $50 million in military aid will be used for such “basic” requirements as logistics, communications, transportation and troop support.

“It’s clear that Mrs. Aquino has as a priority item improving the economy,” McPherson said. “We want to help them. We want to do what basically needs to be done.”

He said the program was based on an assessment of Philippine military and economic needs made by a delegation of Administration officials, including representatives from the departments of Treasury, State and Defense. The group, headed by McPherson, recently visited the Philippines and met with Aquino and her senior aides.

“The Philippine economy faces a number of severe problems which, if they are to be resolved, will require a sustained effort by the Philippine people and government and the support of the international financial community,” said a statement released by the White House.

Economic officials of the new Philippine government outlined “sound, market-oriented economic policies” that the government intends to pursue “to restore sustainable, job-creating and non-inflationary growth in the Philippine economy,” the statement said.

The Aquino government has “clearly demonstrated the intention to carry out needed economic and military reforms,” it said.