It is for this reason that we now appeal to you and to the participants in the enlarged Geneva Conference to persevere in your efforts to find effective measures to facilitate a peaceful settlement of the Laotian question.

FEDERATION OF MALAYA

EXTENSION OF UNITED KINGDOM-MALAYAN DEFENSE ARRANGEMENTS TO THE PROPOSED FEDERATION OF MALAYSIA: Joint Statement Issued at London by the Prime Minister of the United Kingdom (Macmillan) and the Prime Minister of the Federation of Malaya (Tunku Abdul Rahman), November 22, 1961 5

59

MONGOLIAN PEOPLE'S REPUBLIC

529. THE QUESTION OF UNITED STATES RECOGNITION OF OUTER MONGOLIA: Reply Made by the Secretary of State (Rusk) to a Question Asked Following an Address Before the National Press Club, July 10, 1961 60

60

This question of the recognition of Outer Mongolia has been under study, and we have been talking with other governments about it. We have not taken final steps with regard to this at this time. It is a question on which governments have different views, and the Government of the Republic of China, of course, has some strong views about it. But we think that this is a point on which allies and demonstrated friends can talk about it, can think about it together, and consider all of the ramifications and hopefully come to some agreement. It may not be possible; it is not always necessary for allies to agree with each other on every point, and disagreement on such a point is no reflection upon the solidarity of the alliance itself.

530. SUSPENSION OF

CONSIDERATION OF UNITED STATES RECOGNITION OF OUTER MONGOLIA: Statement Read to Correspondents by the Director of the Office of News (White), Department of State, August 11, 1961 61

The United States Government for a considerable period of time has been exploring the question of the establishment of relations with

59 Cmnd. 1563.

The reply printed here is taken from p. 181 of the Department of State Bulletin, July 31, 1961 (reprint of Department of State press release No. 484). 61 Department of State Bulletin, Sept. 4, 1961, pp. 408-409.

Outer Mongolia and has held a series of discussions with other governments on this matter. We believe that in view of the existing world situation, it is in the best interests of the United States to suspend further exploration of that matter at this time.62

NEW ZEALAND

531. NEW ZEALAND-UNITED STATES REVIEW OF MATTERS OF MUTUAL INTEREST: Joint Communiqué Issued at Washington by the President of the United States (Kennedy) and the Prime Minister of New Zealand (Holyoake), March 3, 1961 63

President Kennedy and Prime Minister Holyoake met today in Washington to review matters of mutual interest. The Secretary of State, Dean Rusk; the Assistant Secretary of State for Far Eastern Affairs, J. Graham Parsons; the Secretary of the Department of External Affairs of the Government of New Zealand, Mr. A. D. McIntosh; and the Chargé d'Affaires of the New Zealand Embassy in Washington, Mr. O. D. L. White, participated in the discussions.

In welcoming this opportunity to establish a personal association at an early stage of their administrations, the President and Prime Minister declared their desire to make even stronger the friendship and confidence which have always characterized relations between their two countries.

The President and the Prime Minister reviewed the progress so far achieved, and the continuing contribution of the United States and New Zealand, in the struggle to raise living standards in the developing areas of the world. They noted with concern the present inadequacy of food distribution throughout the world and the urgent need for action to alleviate mass hunger and malnutrition which now afflict much of mankind. They recognized the importance of insuring that programs of aid in agricultural commodities should not endanger normal trade.

In exchanging views on defense questions, the Prime Minister and the President were in full agreement on the importance and value of SEATO and ANZUS. Both leaders reaffirmed their adherence to the principles of collective security which these treaties make effective. Both stated their determination to cooperate closely in maintaining security in the Pacific. Prime Minister Holyoake informed the President of the review of defense policy which New Zealand is presently conducting with the aim of insuring that it will be able to meet its commitments promptly and effectively.

President Kennedy and Prime Minister Holyoake noted with deep

"Reference to the Berlin crisis; see ante, docs. 231-284.

63 White House press release dated Mar. 3, 1961 (text as printed in the Department of State Bulletin, Mar. 20, 1961, pp. 403–404).

concern the hostile and aggressive attitude of the Chinese Communist regime and the particular menace it poses to the peace of Asia, Africa. and Latin America.

The Prime Minister and the President examined the crisis in Laos. Mr. Holyoake drew upon the first-hand experience he had been able to gain during his fact-finding tour of Laos last year. Both men welcomed the recent statement of King Savang Vatthana ** and expressed the hope that ways could be found in the near future to bring to this Asian nation peace, security, and neutrality.

The President and the Prime Minister agreed that disarmament confronted the world with one of its most difficult problems. President Kennedy outlined the steps the United States is taking to coordinate and expand its efforts in this field. Both leaders expressed the hope that future deliberations on this subject would have a successful conclusion. They recognized that effective controls must be a central feature of any agreement.

The President of the United States took this occasion to thank the New Zealand Government and people for the excellent support and hospitality they have extended to the United States in its scientific endeavors in Antarctica.

THE PHILIPPINES

532. SETTLEMENT OF THE OBLIGATION OF THE PHILIPPINE GOVERNMENT UNDER THE ROMULO-SNYDER AGREEMENT OF 1950: Agreement Effected by Notes Exchanged at Washington by the Acting Secretary of State (Bowles) and the Special and Personal Envoy of the President of the Philippines (Quintero), March 27, 1961 (Excerpt) 65

The Acting Secretary of State to the Special and Personal Envoy of the President of the Philippines

DEPARTMENT OF STATE
WASHINGTON

March 27.1961

EXCELLENCY:

I have the honor to refer to discussions which have taken place between representatives of the Government of the Republic of the Philippines and of the Government of the United States of America looking toward adjustment of the amount and final settlement of the obligation of the Philippine Government under terms of the Agreement of November 6, 1950, relating to the repayment of funds advanced to the National Defense Forces, Republic of the Philippines

04 Ante, doc. 497.

65 TIAS 4715; 12 UST 297; 405 UNTS 304.

by the United States Philippines-Ryukyus Command, and of related matters.6

66

I enclose a Memorandum of Understanding incorporating arrangements to be entered into by the two Governments in connection with the final settlement.

I have the honor to propose that this note and the enclosed Memorandum of Understanding and Your Excellency's reply acknowledging and accepting these arrangements shall constitute an agreement between our two Governments, the agreement to enter into force on the date of your note in reply.

Accept, Excellency, the renewed assurances of my highest consid

eration.

For the Acting Secretary of State:

J. GRAHAM PARSONS

Enclosure:

Memorandum of Understanding

His Excellency

EDUARDO QUINTERO,

Special and Personal Envoy

of the President of the Philippines

MEMORANDUM OF UNDERSTANDING

1. The Government of the Republic of the Philippines hereby agrees to pay to the Government of the United States of America on or before April 27, 1961 and the Government of the United States of America hereby agrees to accept the sum of $20,000,000.00 in partial payment of the principal and interest due the United States under Articles I and II of the Agreement between the Governments of the Republic of the Philippines and of the United States of America signed November 6, 1950, relating to the repayment of funds advanced to the National Defense Forces, Republic of the Philippines by the United States Philippines-Ryukyus Command.

2. The Government of the Republic of the Philippines and the Government of the United States of America agree that the remaining principal and interest due the United States shall be offset as payment in full against any United States indebtedness to the Philippines arising out of the claim for work performed by any individual or element of the National Defense Forces, Republic of the Philippines for the Recovered Personnel Division and/or its successor organization, the Adjutant General Records Depository of the United States Philippines-Ryukyus Command, established to implement the Missing Persons Act. The claims of the United States and the Philippines in these matters shall thereby be considered to have been finally settled and extinguished.

3. The Government of the United States of America hereby relinquishes any and all interest in the Trust Fund consisting of undelivered checks amounting to P2,540,480.23 established by the Armed

"TIAS 2151; 1 UST 765; 122 UNTS 63.

Forces of the Philippines in the Philippine Bank of Commerce on behalf of certain persons whose claims for compensation had previously been approved by the United States.

4. The Government of the Republic of the Philippines agrees to release the Government of the United States of America from any and all responsibility regarding the claims represented by the amounts deposited in the said Trust Fund and to assume any and all such responsibility with respect thereto. Moreover, the Government of the Republic of the Philippines agrees that the said Trust Fund shall remain open for proof of the validity of claims to the checks deposited in the said Trust Fund for a period of one year from the date of this Agreement. Thereafter, any unclaimed sums in the said Trust Fund may become the property of the Government of the Republic of the Philippines as permitted by Philippine law.

5. If the payment referred to in paragraph 1 of this Memorandum of Understanding is not made on or before April 27, 1961, this Memorandum of Understanding shall be of no force and effect and the Government of the United States of America and the Government of the Republic of the Philippines shall have the rights with respect to the Agreement of November 6, 1950 and the Recovered Personnel Division claim which they had before March 27, 1961.

67

533. PHILIPPINE-UNITED STATES DISCUSSION ON "PROBLEMS WHICH CONFRONT THE GOVERNMENTS OF THEIR TWO PEOPLES": Joint Communiqué Issued at Manila by the President of the Republic of the Philippines (Garcia) and the Vice President of the United States (Johnson), May 14, 1961 68

President Carlos P. Garcia of the Republic of the Philippines and Vice President Lyndon B. Johnson of the United States of America met at Malacanang Palace at 7:35 a.m. today and informally discussed matters of interest to their two countries and the free world.

The meeting was cordial and friendly. The discussion was thorough, frank and specific. There was complete agreement on the seriousness of the situation in Southeast Asia. There was also complete agreement on the determination of the two nations to maintain effective strength against Communist encroachments in Asia. On this principle there is complete accord between the two nations.

Vice President Johnson stressed that he came at the request of President Kennedy to seek counsel and judgment and the views of President Garcia on the world situation.

The Philippine Envoy replied favorably the same day.

Department of State Bulletin, June 19, 1961, pp. 957-958. Vice President Johnson was in Manila, May 13-14, 1961; for his itinerary, see footnote 2 to doc. 455, ante.