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SECRET SYSTEM II 90046 & THE WHITE HOUSE SECRET WASHINGTON February 20, 1985 DECLASSIFIEPANT t. Authority NATIONAL SECURITY DECISION DIRECTIVE NUMBER 163 BY UI NARA DATE 16/10/1 UNITED STATES POLICY TOWARDS THE PHILIPPINES (S) General The United States has vital interests in the Philippines that are threatened by internal political and economic developments. Politically, the Philippines must be a stable, democratically- oriented ally as a radicalized Philippines could destabilize the entire region. Strategically, continued and unhampered access to our military facilities is of prime importance in helping to offset the expanded Soviet threat to one region. Moreover, alternatives to the existing bases are much more expensive and less satisfactory. Regionally, a strong ASEAN that includes a healthy Philippines allied to the United States is a buffer to Communist pressure in Southeast Asia and a model of what economic freedom and democratic progress can accomplish. Economically, we benefit from a strong investment and trade position. (S) Throughout the ongoing crisis unleashed by the Aquino assassination, the bedrock of our policy has been to reform and revitalize Philippine political, economic and military institutions. We have used quiet diplomacy and judicious use of leverage to achieve many positive developments over the past 18 months. (S) Our Overall Approach We are not promoting the dismantling of institutions that support stability as occurred in Nicaragua during the collapse of the Somoza regime. Our goal is orderly succession that leads to a stable transition. Accordingly, we are actively, albeit discreetly, supporting the efforts of diverse Filipino leaders to promote revitalized institutions. These include the responsible members of Marcos' party, the businessmen and professionals, the Catholic hierarchy, the military professionals, and responsible members of the democratic opposition. (S) SECRET SECRET COPY 1 08 OF COPTES Declassify on: OADR