Reagan to Ask More Philippine Aid if Vote Is Fair

President Reagan said Thursday that he will consider a substantial increase in military and economic aid to the Philippines if the Feb. 7 election is conducted fairly and if the winner institutes economic, political and military reforms.

“A free and fair election, if also followed by a genuine reform effort in the economic and security areas, will assist the Philippines along a path of growth, prosperity and stability,” Reagan said in a written statement issued by the White House.

In that event, he added, “we should consider . . . a significantly larger program of economic and military assistance.”

Amount Undetermined

Later, a senior Administration official said the President has not yet decided how much of an increase to request from Congress. This official said the amount will be open to discussion between U.S. officials and the Filipino government that is elected next month. President Ferdinand E. Marcos is opposed in the election by Corazon Aquino.

“It will depend critically on what kinds of reforms that government is willing to undertake,” said the official, who briefed reporters on the understanding he would not be identified by name.

The pledge may prove hollow, however, because congressional leaders already have served notice that approval of any increase in foreign aid is extremely unlikely this year under the new Gramm-Rudman balanced-budget law.

‘Starved for Resources’

Indeed, the senior official seemed more concerned about heading off any possible cut in military aid to Manila than about an increase. Existing levels of aid should continue, he said, regardless of whether the election is fair.

“The military of the Philippines has a budget which is roughly 1% of gross national product,” the official said. “It is starved for resources. That’s the lowest percentage of any Southeast Asian country. . . . To talk about cutting off military assistance to the Philippine armed forces is a formula for disaster.”

Congressional sources have said that the Administration wants to double this year’s $51 million in military aid.

1983 Agreement

Under a 1983 agreement to extend the U.S. lease on Subic Bay Navy Base and Clark Air Base, Reagan is committed to seek at least $85 million in military aid and $95 million in economic aid for the Philippines.

Washington considers this payment to be foreign aid, although Manila considers it rent. Congress cut the $85-million figure sharply last year, but the official said it would be a mistake for the lawmakers to do so again.

Responding to charges that Washington is “meddling” in the upcoming election, the official chided Congress for complaining about corruption by the Marcos government. He added that it is up to the Filipino people to debate that issue, which he said does not concern Washington.

Also, the official said, recent hearings by a House subcommittee on the Marcos family finances “generates the feeling (in the Philippines) that the United States has forgotten that it is not the colonial power any more.”