USAFFE&v.

&Treasurer&of&the&Philippines&(1959)&
USAFFE&VETERANS&ASSOCIATION,&INC.&v&TREASURER&OF&THE&PHILIPPINES,&
ET.&AL.&(June&30,&1959)&Appeal&from&a&judgment&of&the&CFI&of&Manila&
!
FACTS:!
! Romulo.Snyder! Agreement! (1950):! RP! Govt! undertook! to! return! to! the!
US!Govt!in!10!annual!installments,!a!total!of!about!$35M!advanced!by!the!
US!to,!but!unexpended!by,!the!Natl!Defense!Forces!of!the!RP.!
!
! Oct! 1954:! The! Usaffe! Veterans! Associations! Inc! prayed! in! its! complaint!
before!the!CFI!that!said!Agreement!be!annulled;!that!payments!thereunder!
be!declared!illegal;!&!that!defendants!as!officers!of!RP!be!restrained!from!
disbursing!any!funds!in!the!Natl!Treasury!in!pursuance!of!said!Agreement.!
!
!Usaffe!Veterans!further!asked!that!the!moneys!available,!instead!of!being!
remitted! to! the! US,! should! be! turned! over! to! the! Finance! Service! of! the!
AFP!for!the!payment!of!all!pending!claims!of!the!veterans!represented!by!
plaintiff.!
!
! 3! PROPOSITIONS! OF! PLAINTIFF! IN! COMPLAINT:! 1)! that! the! funds! to! be!
returned! under! the! Agreement! were! funds! appropriated! by! the! US!
Congress! for! the! RP! Army,! actually! delivered! to! the! RP! Govt! &! actually!
owned! by! the! said! Government;! 2)! that! U.S! Secretary! Snyder! of! the!
Treasury,!had!no!authority!to!retake!such!funds!from!the!RP!Govt;!3)!The!
RP! Foreign! Secretary! Carlos! P.! Romulo! had! no! authority! to! return! or!
promise!to!return!the!aforesaid!sums!of!money!through!the!Agreement.!
! The! court! eventually! upheld! the! validity! of! the! Agreement.! Plaintiff!
appealed.!
!
! July! 26,! 1941:! Foreseeing! the! War! in! the! Pacific,! Pres! Roosevelt,! called!
into! the! service! of! the! US! Armed! Forces,! for! the! duration! of! the!
emergency,!all!organized!mil!forces!of!the!Commonwealth.!(His!order!was!
published!here!by!Proc!No!740!of!Pres!Quezon!on!Aug!10,!1941)!
!
! October! 1941:! By! 2! special! orders,! MacArthur,! Commanding! Gen! of!
USAFFE,! placed! under! his! command! all! the! RP! Army! units! including! Phil!
Constabulary.!

!
! Thus,! US! Congress! provided! in! its! Appropriation! Act! of! Dec! 17,! 1941!
(Public! Law! No.! 353):! For! all! expenses! necessary! for! the! mobilization,!
operation! &! maintenance! of! the! RP! Army,! including! expenses! connected!
w/!calling!into!the!service!RP!mil!forces$269,000.00;!to!remain!available!
til! June! 30,! 1943,! w/c! shall! be! available! for! payment! to! the!
Commonwealth! upon! its! written! request,! either! in! advance! of! or! in!
reimbursement! for! all! or! any! part! of! the! estimated! or! actual! costs,! as!
authorized!by!the!USAFFE!Commanding!Gen,!of!the!necessary!expenses!for!
the!purposes!aforesaid.!
!
!Pursuant!to!the!power!reserved!to!him!under!Public!Law!353,!Roosevelt!
issued! EO! 9011:! 2(a)! Necessary! expenditures! from! funds! in! the! Phil!
Treasury! for! the! purposes! authorized! by! Public! Law! 353,! will! be! made! by!
disbursing! officers! of! the! RP! Army! on! the! approval! of! authority! of! the!
Commandign!General,!USAFFE,!&!such!purposes!as!he!may!deem!proper!
!
! P570,863,000.00! was! transferred! directly! to! the! AFP! by! means! of!
vouchers!w/c!stated!Advance!of!Funds!under!Public!Law!353!&!EO!9011!
This!was!used!mostly!to!discharge!in!RP!the!monetary!obligations!assumed!
by! the! US! as! a! result! of! the! induction! of! the! AFP! into! the! US! Army,! &! its!
operations!beginning!in!1941.!
!
!There!remained!unexpended!&!uncommitted!$35M!in!the!possession!of!
the!AFP!as!of!Dec!31,!1949.!Bec!the!RP!Govt!then!badly!needed!funds,!Pres!
Quirino,!through!CB!Gov!Cuaderno,!proposed!to!US!officials!the!retention!
of!the!$35M!as!a!loan,!&!for!its!repayment!in!10!annual!installments.!This!
was!the!Romulo.Snyder!Agreement,!signed!in!Washington!on!Nov!6,!1950!
by!RP!Foreign!Affairs!Sec!Romulo,!&!US!Sec!of!Treasury,!John!Snyder.!
!
!PRESENT!ACTION:!Usaffes!arguments!!1)!the!money!delivered!by!the!US!
to!the!AFP!were!straight!payments!for!mil!services;!ownership!thus!vested!
in! RP! Govt! upon! delivery,! &! consequently,! there! was! nothing! to! return,!
nothing!to!consider!as!a!loan;!2)!the!Agreement!was!void!bec!there!was!no!
loan! to! be! repaid! &! bec! it! was! not! binding! on! the! RP! Govt! for! lack! of!
authority!of!the!officers!who!concluded!it.!
!
!

ISSUES!
!Basic!issue:!Validity!of!the!Romulo.Snyder!Agreement!!Court!cant!pass!
judgment!
1.!
WON!
there!
is!
obligation!
to!
repay!
.!
YES!
2.!WON!the!officers!who!promised!to!repay!had!authority!to!bind!this!Govt!
!YES!
!
RATIO:!
!
1.!YES!
!
! Note! that! the! $269M! appropriated! in! Public! Law! 353! (see! 8th! bullet)!
expressly! said! that! the! money! is! to! be! handed! to! the! RP! Govt! either! in!
advance!of!or!in!reimbursement!thereof.!
!
! In! any! system! of! accounting,! advances! of! funds! for! expenditures!
contemplate!disbursements!to!be!reported,!&!credited!if!approved,!against!
such! advances,! the! unexpended! sums! to! be! returned! later.! Congressional!
law! itself! required! accounting! in! the! manner! prescribed! by! US! Pres! .! &!
said!Pres!in!EO!9011,!outlined!the!procedure!whereby!advanced!funds!shall!
be!accounted!for.!
!
!It!also!requires!as!a!condition!sine!qua!non!that!all!expenditures!shall!first!
be!approved!by!the!USAFFE!Commanding!Gen.!
!
!These!ideas!of!funds!advanced!to!meet!expenditures!of!the!Phil!Army!
as! may! be! approved! by! the! USAFFE! Comm.Gen,! in! connection! w/! the!
accounting! requirement,! evidently! contradict! appellants! thesis! that! the!
moneys!represented!straight!payments!to!RP!Govt!for!its!armed!services,!&!
passed!into!the!absolute!control!of!such!Govt!
!
! Instead! of! returning! such! amount! into! one! lump! sum,! our! Exec! Dept!
arranged! for! its! repayment! in! 10! annual! installments.! Prima! facie! such!
arrangement!should!raise!no!valid!objection,!given!the!obligation!to!return.!
!
2.! YES! (They! have! authority! to! bind! Govt! even! w/o! Senate! concurrence)!
! There! is! no! doubt! Pres! Quirino! approved! the! negotiations.! And! he! had!
the!power!to!contract!budgetary!loans!under!RA!213,!amending!RA!16.!

!
!The!most!impt!argument,!however,!rests!on!the!lack!of!ratification!of!the!
Agreement!by!RP!Senate!to!make!it!binding!on!the!Govt.!
!
! The! ff! explanation! of! the! defendant! was! considered! persuasive! by! the!
Court!
!
The! agreement! is! not! a! treaty! as! that! term! is! used! in!
CONSTI.! However,! a! treaty! is! not! the! only! form! that! an!
intl! agreement! may! assume.! For! the! grant! of!
treatymaking! power! to! the! Executive! &! the! Senate! does!
not!exhaust!the!power!of!the!govt!over!intl!relations.!
!
Executive! agreements! may! be! entered! into! w/! other!
states!&!are!effective!even!w/o!concurrence!of!Senate.!
!
In! intl! law,! theres! no! difference! betn! treaties! &!
executive!agreements!in!their!binding!effect!upon!states!
concerned! as! long! as! the! negotiating! functionaries! have!
remained!w/n!their!powers.!
!
The! distinction! betn! executive! agreements! &! treaties! is!
purely!a!constl!one!&!has!not!intl!legal!significance.!
!
Altman!v.!US:!An!intl!compact!negotiated!betn!the!reps!
of!2!sovereign!nations!&!made!in!the!name!or!behalf!of!
the! contracting! parties! &! dealing! w/! impt! commercial!
relns! betn! the! 2! countries,! is! a! treaty! both!
internationally! although! as! an! executive! agreement! it! is!
not!technically!a!treaty!requiring!the!advice!&!consent!of!
the!Senate!
!
2! classes! of! Executive! Agreements:! 1)! agreements! made!
purely! as! executive! acts! affecting! external! relations! &!
independent!of!or!w/o!legislative!authorization,!w/c!may!
be! termed! as! presl! agreements;! 2)! agreements! entered!
into! in! pursuance! of! acts! of! Cong,! w/c! have! been!
designated!as!Congressional.Executive!Agreements!

!
The! Romulo.Snyder! Agreement! may! fall! under! any! of!
these! 2! classes! for! on! Sept! 18,! 1946,! RP! Congress!
authorized!the!RP!Pres!to!obtain!such!loans!or!incur!such!
indebtedness!w/!the!US.!
!Even! granting! theres! no! leg! authorization,! the!
Agreement!was!legally!&!validly!entered!into!to!conform!
to!the!2nd!category,!namely,!as!agreements!entered!into!
purely! as! executive! acts! w/o! leg! authorization,! w/c! usu!
includes!money!agreements.!
!
The! Agreement! was! not! submitted! to! the! US! Senate! either.! But! the!
Phil! Senates! Resolution! No.! 15! practically! admits! the! validity! &!
binding!force!of!such!Agreement.!
!
Further,! the! acts! of! Congress! appropriating! funds! for! the! yearly!
installments! necessary! to! comply! w/! such! Agreement! constitute! a!
ratification!thereof,!W/C!PLACES!THE!QUESTION!OF!VALIDITY!OUT!OF!
THE!COURTS!REACH,!NO!CONSTL!PRINCIPLE!HAVING!BEEN!INVOKED!
TO!RESTRICT!CONGRESS!PLENARY!POEWR!TO!APPROPRIATE!FUNDS!!
LOAN!OR!NO!LOAN.!

!
!
HELD:!Plaintiff!failed!to!make!a!clear!case!for!the!relief!demanded.!Petition!
DENIED.!
!