Vinuya V Romulo
Vinuya V Romulo
Vinuya V Romulo
8 Id.
13 Takushi Ohno, War Reparations & Peace Settlement:
9 Id. Philippines-Japan Relations 1945-1956, p. 8 (1986); Yang
Zhihui, From War Reparation to Postwar Reparation (Louisa
10 Id.
Rubinfien trans.), in Toward a History Beyond Borders: Contentious
11 Id.
Issues in Sino-Japanese Relations, pp. 374-375 (Daqing Yang, Jie Liu,
12 Id.
Hiroshi Mitani & Andrew Gordon eds., 2012).
615reliance on the Treaty of Peace with Japan (1951 14 OHNO, id.
Peace Treaty) and the Reparations Agreement Between 15 OHNO, id., at p. 19.
the Republic of the Philippines and Japan (1956 16 OHNO, id., at p. 11.
17 OHNO, id.; Yang Zhihui, supra.
Reparations Agreement) as bases for declining to
616However, due to the opposition of the former Soviet
espouse petitioners’ claims against Japan was not
without reason, especially if the treaties are analyzed in Union, the proposals did not materialize.18
the light of the events leading to their conclusion. American reparations policy shifted in 1947.19 As the
The subject of reparations for damages suffered Cold War developed, the U.S. initiated the drafting of a
during the war was discussed during the occupation of peace treaty with Japan.20 On the issue of reparations,
the U.S. negotiated for a complete waiver of all claims spread of communism in Asia,26 it remained firm that
arising from Japan’s war acts.21 The alleged rationale Japan should “sufficiently x x x repair the injuries they
for this “peace formula” rested on the U.S. assumption inflicted in a war of aggression x x x.”27 The U.S. tried to
that if Japan were to be lured into the communist persuade the Philippine government. It pointed out that
influence, the strength of the Sino-Soviet camp would the problem of reparations was “not merely a matter of
significantly increase, and the resulting change in the justice,” but also a “matter of economics.”28 It argued
power balance in Asia would be “dangerously that they could not see “any effective way” of demanding
formidable.”22 According to the U.S., Japan must be reparations from an economically depressed Japan.29 In
given a chance to recover full economic self-sufficiency a last effort to convince the Philippines to accept a no-
“by not placing upon her any heavy economic or reparations peace arrangement, the U.S. emphasized
financial burdens or major commercial liabilities.”23 The the usually “intimate” relations between both
peace treaty was to be “brief, liberal, and nonpunitive.”24 countries.30
_______________ The U.S. was unsuccessful; the Philippines
18 OHNO, id., at p. 13.
19 OHNO, id., at pp. 18-26; John F. Dulles, a Peace Treaty in the
maintained an irrevocable stance on the matter of
Making (Addresses and Remarks Regarding the Making of the reparations.31Former Undersecretary of Foreign Affairs
Japanese Peace Treaty and the Cause of World freedom) pp. 3-7 (1951); Felino Neri criticized the American peace policy and
Yang Zhihui, supra note 13 at pp. 375-377. remarked: “Reparations is first a matter of justice and
20 OHNO, id., at p. 36.
21 OHNO, id., at pp. 37-38 (citing United States Memorandum to
the realities of economics are, in our view, a secondary
the Government on the Far Eastern Commission, in Royal Institute of consideration. In our case, reparations from Japan is a
International Affairs, Documents on International Affairs, 1947-1949, matter of absolute necessity.”32 The Philippines’
pp. 615-616 [1952]); Yang Zhihui, id., at p. 376. condemnation of the American peace formula
22 OHNO, id., at p. 38; See also Dulles, supra at pp. 40-42; Yang
Zhihui, id.
intensified when the U.S. government made available
23 OHNO, id., at p. 37 (citing John Foster Dulles, “Peace May Be its draft of the
Won,” U.S.A. Department of State, DSB, Vol. 24 No. 605, at p. 255 _______________
[1951]); See Dulles, id., at pp. 19-21. 25 OHNO, id., at p. 40; Yang Zhihui, supra note 13 at p. 376.
24 OHNO, id. (citing U.S.A., Department of State, “An Estimate of 26 OHNO, id., at p. 39.
Conditions in Asia and the Pacific at the Close of the War in the Far 27 OHNO, id., at p. 40 (citing The President’s Inaugural Address,
East and the Objectives and Policies of the United States,” Diplomatic December 30, 1949, Official Gazette, Vol. 45, No. 12, at p. 5384 [1949]).
Papers, Vol. VI, pp. 556-580, 1945 [1969]); See Dulles, id. 28 OHNO, id., at p. 42 (citing Truman’s Envoy has long conference
617 The Philippines rejected the U.S. proposal of on Jap pact with EQ, the Manila Times, February 12, 1951, pp. 1-2).
29 OHNO, id.
total waiver of reparations claims against 30 Id.
Japan.25 While the Philippine government had full 31 Id., at pp. 42-43; See also Dulles, supra note 19 at p. 48; Yang
appreciation of the international political reality of the Zhihui, supra at p. 376.
32 OHNO, id., at p. 43 (citing Neri assails Dulles stand, the Manila 35 Id.
Times, 3 March 1951, pp. 1, 12). 36 Id., at p. 52.
618treaty, which provided for the absolute 37 Id., at p. 54.
38 Id.
abandonment of reparations claims on the ground that 39 Id., at pp. 54-55 (citing Acheson’s Speech, delivered on
Japan lacked the “capacity to make payments” in any September 8, 1951, in U.S. Dep’t of State Publications, Record of
form.33 The Philippines refused such claims.34 It Proceedings of the Conference for the Conclusion and Signature of the
repeatedly declared that Japan was solvent, and that Treaty of Peace with Japan, pp. 175-177 [1951]).
40 Id., at pp. 55-56.
the Philippines would never withdraw its claims.35
619most aspect of the country’s peace settlement with
At the height of the developing Cold War, the U.S.
Japan.41They also demanded the inclusion in the peace
and the U.K. initiated a conference on the Japanese
treaty of a more categorical statement of Japan’s guilt
peace treaty.36 During the discussions, the Philippines,
and reparations obligation.42 The government defended
through then Foreign Affairs Secretary Carlos P.
its decision to sign the peace treaty on the basis of its
Romulo, expressed that it had yet to be satisfied with
“security first policy.”43It explained that security threats
the reparations provisions of the proposed
of the aggressive communist expansion impelled it to
treaty.37 Secretary Romulo voiced out a reservation on
act swiftly in the ratification of the peace treaty.44 The
an “inflexible restriction” on the form of reparations
opposition countered that the Philippines was
payment, asserting that the Philippines could not
sufficiently safeguarded by its Mutual Defense Treaty
accept that reparations be made only through the
with the U.S.45
“services” of the Japanese people in the processing of
The negotiations for reparations dragged on for
raw materials that would be supplied by the injured
almost five years after the signing of the 1951 Peace
countries.38However, the reservation was neither
Treaty.46From the initial demand of USD8 billion, the
accepted nor recorded.39 Faced with the dilemma of
final reparations agreed upon amounted to a mere
supporting its allies in winning over Japan at the
USD550 million,47 which was to be paid in the form of
expense of fully satisfying security and reparations
capital goods, cash, and services.48 A note sent by
claims, the Philippines reluctantly signed the 1951
President Magsaysay to the Senate reads as follows:
Peace Treaty.40
Considering the losses and suffering the Philippines
The decision of the Philippine government to sustained as a result of the Pacific War, these terms do not
eventually sign the peace treaty was met with strong come up to the generally-accepted concept of
resistance. The opposition insisted that the reparations reparations as compensation for damage done and
issue was the fore- injury suffered.
_______________
33 Id.; See also Dulles, supra note 19 at p. 48.
34 OHNO, id.
Judged, however, from the point of view of the were occupied by Japanese forces and damaged by
requirements of our national interest and viewed in the light Japan, with a view to assisting to compensate those
of the practical realities posed by the political and countries for the cost of repairing the damage done,
_______________ by making available the services of the Japanese
41 Id., at pp. 58, 80. people in production, salvaging and other work for
42 Id., at p. 58.
43 Id., at pp. 75-80. the Allied Powers in question. Such arrangements
44 Id. shall avoid the imposition of additional liabilities on other
45 Id., at p. 80. Allied Powers, and, where the manufacturing of raw
46 Id., at pp. 64-134. materials is called for, they shall be supplied by the
47 Id., at p. 121. _______________
48 President’s Letter of Transmittal, reproduced in Philippine Senate, 49 Id., at p. 4.
Reparations Agreement, the Annex Thereto, the Exchange Notes and the
621Allied Powers in question, so as not to throw any foreign
Other Supporting Documents: Treaty of Peace with Japan, Understanding
of the Senate on Certain Provisions of the Reparations Agreement, p. 3 exchange burden upon Japan.
(1956). 2. x x x x
620economic situation obtaining in both countries as well as (b) Except as otherwise provided in the present Treaty,
in their part of the world, I subscribe to the conclusion the Allied Powers waive all reparation claims of the
reached by the Philippine Panel of Negotiators that this Allied Powers,other claims of the Allied Powers and
settlement is the best that can be obtained under the their nationals arising out of any actions taken by
circumstances x x x.49 Japan and nationals in the course of the prosecution
After a heated debate, the 1951 Peace Treaty and of the war, and claims of the Allied Powers for direct
the 1956 Reparations Agreement were ratified on 16 military costs of occupation. (Emphases supplied)
July 1956. The pertinent provision of the 1951 Peace On the other hand, the relevant provisions of the
Treaty is reproduced below: 1956 Reparations Agreement are quoted as follows:
ARTICLE 14 ARTICLE 1
(a) It is recognized that Japan should pay reparations Japan, by way of reparations, shall supply the
to the Allied Powers for the damage and suffering Republic of the Philippines with the services of the
caused by it during the war. Nevertheless it is also Japanese people and the products of Japan in the
recognized that the resources of Japan are not form of capital goods, the total value of which will be so
presently sufficient if it is to maintain a viable much in yen as shall be equivalent to five hundred fifty
economy, to make complete reparations for all such million United States dollars ($550,000,000) at present
damage and suffering and at the same time meet its other computed at one hundred ninety-eight billion yen
obligations. (Y198,000,000,000), within the period and in the manner
Therefore, hereinafter prescribed.
1. Japan will promptly enter into negotiations with ARTICLE 2
Allied Powers so desiring, whose present territories
The supply of the services and products referred to in the declining to espouse the claims of petitioners. The
preceding Article shall be made on an annual average of so dismissal thereof should not, however, be taken as a
much in yen as shall be equivalent to twenty-five million definitive ruling on the merits of the claims of
United States dollars ($25,000,000) at present computed at petitioners, in the event that they bring the same to an
nine billion yen (Y9,000,000,000), during the ten-year period
appropriate forum or through a proper recourse.
from the date of coming into force of the present Agreement;
Neither should it be taken to mean that we should
and on an annual average of so much in yen as shall be
equivalent to thirty million United States dollars forget the suffering that our people, especially
($30,000,000) at present computed at ten billion eight petitioners, bore in the Second World War, or the
hundred million yen (Y10,800,000,000), during the unfortunate story of our attempts to get the reparation
succeeding ten-year period. However, by that was due us, and learn. From such understanding,
622agreement between the two Governments, this latter we must forge the elements that will make the
period may be reduced to a period shorter than ten years, Philippine state strong, able to protect its people and
provided the outstanding balance is settled in full within the safeguard their well-being under the aegis of the
remainder of the reduced period. Constitution. Justice demands no less.
ARTICLE 6 623
1. In the discharge of the reparations obligation under Motion for Reconsideration and Supplemental
Article 1 of the present Agreement, the Government of Japan Motion for Reconsideration denied.
shall, through procedures to be determined under Article 11,
make payments to cover the obligations incurred by the
Notes.—It is worth stressing that the assessment
Mission under Reparations Contracts and the expenses for
the supply of services and products referred to in Article 5, and evaluation of evidence in the issuance of the writ of
paragraph 4 of the present Agreement. These payments shall preliminary injunction involves findings of facts
be made in Japanese yen. ordinarily left to the trial court for its conclusive
2. By and upon making a payment in yen under the determination. (Dela Rosa vs. Heirs of Juan Valdez, 654
preceding paragraph, Japan shall be deemed to have SCRA 467 [2011])
supplied the Republic of the Philippines with the A preliminary mandatory injunction is more
services and products thus paid for and shall be cautiously regarded than a mere prohibitive injunction
released from its reparations obligation to the extent of since, more than its function of preserving the status
the equivalent value in United States dollars of such yen quo between the parties, it also commands the
payment in accordance with Articles 1 and 2 of the present performance of an act. (Id.)
Agreement. (Emphases supplied)
——o0o——
In the light of the foregoing context, I vote to
dismiss the petition for failure to establish that
respondents committed grave abuse of discretion in
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