62 STAT.] PHILIPPINES-LEASE OF VESSELS--SePt 26, Dec. 9 , 1947 May 6, June 7, 1948 include only such vessels as may be selected by the Republic of the Philippines acting through the Chief of Staff of the Armed Forces of the Philippines. (b) That the vessels so selected by the Republic of the Philip- pines through its Chief of Staff of the Armed Forces shall be accepted by the charterers in A-1 operational condition complete with all items of equipment, appliances, fuel consumable stores and spare and replacement parts in accordance with the standard table of allowances. "With the above understanding, I shall be ready to sign the agree- ment in behalf of my Government." A copy of Your Excellency's note having been sent to the Com- mander, United States Naval Forces, Philippines, the latter com- mented to his superiors at Washington as follows: "(a) The provision that only such vessels as may be selected by the Republic of the Philippines will be transferred under the charter, is agreeable to this command. "(b) The provision that such vessels as are selected by the Re- public of the Philippines shall be in A-1 condition, complete with all items of equipment, appliances, fuel, consumable stores and spare and replacement parts in accordance with the standard table of allowances, is not in accordance with present directives. Neither the basic agreement under which the vessels are being transferred nor the proposed procedure for the charter require the U. S . Govern- ment to furnish fuel or consumable stores on a non-reimburseble basis. Items of equipment, appliances and spare parts are fur- nished on a basis of whether or not they are in the area and excess to the needs of the Navy. "(c) This command is necessarily guided in the entire vessel transfer program by directives from higher authority. Such directives, to date, specify that every attempt shall be made to make vessels scheduled for transfer operable in so far as possible. No funds are available for a greater amount of work nor for the sup- plying of stores or spares which would have to be procured else- where than from Navy excess stocks." The Chief of Naval Operations on April 15, 1948 expressed con- currence with the foregoing comments by COMNAVPHIL upon the Philippine reservations, as copied above, and, in turn, I have been authorized by the Secretary of State of my Government to convey those views to Your Excellency as representing the decision of that highest professional United States Navy authority. Assuming the continuance of the interest of the Department of Na- tional Defense in acquiring the vessels in question, it would seem only fair to report to Your Excellency that information has infor- mally come to the Embassy that, because of impending appropria- tion expirations, it would be desirable to arrange to take deliveries before June 30, 1948. 3877 Comments of Com- mander, U. 8 . Naval Forces, Philippines. Concurrence.
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