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"initiative to maintain PHILCAG in Vietnam. If we relent and acquiesce to the Philippine demands that we pick up the entire check, we will only serve to make it impossible to demand that PHILCAG improve its performance, since one does not preface an effort to shape up a case by begging them to stay."

The State Department took notice of the embassy position but hoped "for a continuation of the present situation." It was believed that with 1969 an election year in the Philippines, the subject of the Philippine Civic Action Group, Vietnam, could be kept at a low key if the United States would contribute to the discussion by clarifying the choices available to the Philippines.

The existing situation was temporary and lasted only until 5 June, when the Philippine Senate passed its version of the national budget. The budget rescinded funds for the Philippine Civic Action Group but restricted spending to the support of a "phased withdrawal." As the Philippine presidential campaign developed, by early October the civic action group had become a critical issue. President Marcos announced to the press the day after the election a proposed meeting to discuss a plan by which a small medical team would be maintained in South Vietnam. He also indicated that he would not ask Congress for further funding. On 14 November the following communication was received at the U.S. Embassy in Manila:

"Excellency: I have the honor to inform you that the Philippine Government has decided to withdraw the Philippine Civic Action Group (PHILCAG) from Vietnam. This decision is taken pursuant to the recommendation of the Foreign Policy Council. Accept, excellency, the renewed assurances of my highest consideration. Signed Carlos P. Romulo, Secretary of Foreign Affairs."

The most immediate problem caused by the announced withdrawal of the Philippine group was its possible impact on other contributing countries. The first effects were noticed in Thailand when on 20 November the Thai Foreign Minister, General Thanai Khoman, discussed the withdrawal with U.S. Ambassador Ellsworth Bunker. The minister expressed his bewilderment that the Free World allies had not been consulted before the Philippine decision to withdraw and indicated that the future of the other contributors to South Vietnam would be a subject for early discussions with other allies. Some Free World forces voiced the suspicion that the United States had been informed beforehand of the Philippine government's most recent action.

Redeployment planning for the Philippine force began on 25 November 1969. The advance party was transported by U.S. C-130 aircraft in two increments, the first on 1 December and the second a week later. The main body moved by Philippine LST's