ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, May 18, 1990                   TAG: 9005180744
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A/4   EDITION: EVENING 
SOURCE: Associated Press
DATELINE: MANILA, PHILIPPINES                                LENGTH: Medium


PROGRESS REPORTED IN PHILIPPINES TALKS

U.S. and Philippine negotiators agreed today to hold further talks on extending the lease for six American military bases after the United States promised it would try to increase aid.

Foreign Secretary Raul Manglapus, the chief Philippine negotiator, made the announcement at the end of five days of exploratory talks with U.S. negotiators on extending the lease for the bases beyond its Sept. 16, 1991, expiration.

A joint communique said the next round of talks on the bases "could include consideration of a new agreement concerning friendship, cooperation and security on the basis of a new relationship between the Philippines and the United States in light of the changing global environment."

In agreeing to hold further talks, U.S. and Philippine negotiators left unresolved two major differences: whether the United States failed to make full aid payments in return for use of the bases, and when the facilities would actually have to close if the two sides cannot reach a lease agreement.

No date was set for the next phase of the talks, which will determine the future of the Subic Bay Naval Base, Clark Air Base and four smaller U.S.-run military installations.

But U.S. spokesman Stanley Schrager said the United States hoped to resume the negotiations "the sooner the better."

The United States considers the bases vital to its defense strategy in the Far East. The bases bring the Philippines badly needed revenue and U.S. aid, but many Filipinos consider them an infringement on sovereignty.

On the eve of the talks, communist rebels killed two American airmen near Clark and threatened further attacks on Americans until all 40,000 U.S. troops, Defense Department civilians and military dependents leave the Philippines.

A regional military commander said today that troops had arrested three suspected members of the Marxist New People's Army, one of whom may be involved in the killing of the American airmen.

The official, Lt. Col. Julius Yarcia, said documents captured from the rebels indicated the guerrillas were planning further attacks against Americans "in the next few days." He did not elaborate.

More than 100 people have been arrested in a series of anti-bases demonstrations in Manila since the talks began.

Police said three masked men dressed in black fired two grenades today from a taxi at a U.S. Information Service cultural center. Only one grenade exploded, causing minor damage and no injuries.

A grenade was also fired at a police station in Makati but it failed to explode.

Police said the incidents could have been timed to cause tension during the talks.

Differences emerged during the talks between the two countries on the amount of compensation Washington owed for the bases and the date when the current agreement expires.

The Philippine government says the lease on the installations expires in September 1991, but the United States says the bases could remain open one year longer under the current agreement.

The joint communique said the difference in interpretation of the termination date "need not stand in the way" of future negotiations.

As for compensation, Philippine authorities claimed the United States owed nearly $222.6 million in back payments for use of the bases.

In 1988, the Reagan administration agreed to provide $962 million over two years in return for use of the bases through 1991.

U.S. officials acknowledged that Congress had cut $96 million from the Bush administration's aid request for the Philippines but refused to concede there was any shortfall in payments for the bases. They said the administration had only promised its "best efforts" to meet the aid target.



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