1

USAFFE Veterans Association v Treasurer of the Philippines

G.R. No. L-10500
PROMULGATED: June 30, 1959
PONENTE: Bengzon, J.

Treaty

RELATED PROVISION/S:
Art 7 Sec 21

FACTS:
The central issue in this litigation concerns the validity of the Romulo-Snyder
Agreement (1950) whereby the Philippine Government undertook to return to
the United States Government in ten annual installments, a total of about 35-
million dollars advanced by the United States to, but unexpended by, the
National Defense Forces of the Philippines.

July 1941: Pres Roosevelt, foreseeing the War in the Pacific, called into the service
of the Armed Forces of the United States, all the organized military forces of the
Philippine Commonwealth.

Money was appropriated by US Congress ( in Appropriation Act of December 17,
1941 - Public Law No. 353) for the expenses of the operation, mobilization and
maintenance of the Philippine Army. Expenditures from funds allocated in Ph
Treasury will be made by disbursing officers of the Army of the Philippines on the
approval of authority of the Commanding General, United States Army Forces in the
Far East

P570,863,000.00 was transferred directly to the Philippines Armed Forces by means
of vouchers which stated "Advance of Funds under Public law 353-77th Congress
and Executive Order No. 9011"

As of December 31, 1949, Of the millions so transferred, there remained
unexpended and uncommitted in the possession of the Philippine Armed Forces of
about 35 million dollars.

At that time, the Philippine Government badly needed funds for its activities.
President Quirino, through Governor Miguel Cuaderno of the Central Bank proposed
to the corresponding officials of the U.S. Government the retention of the 35-million
dollars as a loan

Romulo-Snyder Agreement was signed in Washington stating that The
Government of the Republic of the Philippines further agrees to pay the
unexpended amt by 9 payments of 3.5 M USD + Final payment to be
determined

Oct 1954: United States Army Forces in the Far East (USAFFE) complaint before
the Manila court of first instance Agreement be annulled, that payments
thereunder be declared illegal and that defendants as officers of the Philippine
Republic be restrained from disbursing any funds in the National Treasury

USAFFE Veterans said that funds should be turned over to the Finance Service of
the Armed Forces of the Philippines for the payment of all pending claims of the
veterans represented by plaintiff.

KIND OF CASE/PETITION:
Pet Assailing the Validity of Romulo- Snyder Agreement

ISSUES/ QUESTIONS:
1. WN the money delivered to the Armed Forces of the Philippine Islands were
straight payments for military services; ownership thereof vested in the
Philippine Government upon delivery, and consequently, there was nothing
to return, nothing to consider as a loan

2. W/N the Romulo-Snyder Agreement was void/ not binding for lack of
authority of the officers who concluded the same.

HELD/RATIO:
1. NO, Funds not property of PH

Court:
Amounts were not under absolute control of PH GOV, funds were advanced not
directly paid to PH and unexpended balance should be returned

Appropriation (Public law 353) states that money is to be handed to the Philippine
Government either in advance of expenditures or in reimbursement thereof. In any
system of accounting, advances of funds for expenditures contemplate
disbursements to be reported, and credited if approved, against such advances, the
unexpended sums to be returned later.


2. NO, Agreement was valid
2


Court: There is no doubt that President Quirino approved the negotiations. And he
had power to contract budgetary loans.

The Romulo-Snyder Agreement is an Executive Agreement and is valid.

Even granting, arguendo, that there was no legislative authorization, it is hereby
maintained that the Romulo-Snyder Agreement was legally and validly entered
into to conform to the second category of Executive Agreements (**See Other
Details for 2 Classes of Exec Agreements)

September 18, 1946, Congress of the Philippines specifically authorized the
President of the Philippines to obtain such loans or incur such indebtedness with the
Government of the United States, its agencies or instrumentalities

Although the agreement is not a "treaty" as that term is used in the Constitution
because it was never submitted to the Senate for concurrence (Art. VII, Sec. 10 (7).
However, it must be noted that treaty is not the only form that an international
agreement may assume.

There are now various forms of such pacts or agreements entered into by and
between sovereign states which do not necessarily come under the strict sense of
a treaty and which do not require ratification or consent of the legislative body
of the State, but nevertheless, are considered valid international agreements.

RULING:
Petition Denied.

BUZZ WORDS/ TAGS:
Treaty, Romulo Snyder Agreement, Funds, Appropriation,

(OPTIONAL) OTHER DETAILS:

**
Executive Agreements fall into two classes:
(1) agreements made purely as executive acts affecting external relations and
independent of or without legislative authorization, which may be termed as
presidential agreements and
(2) agreements entered into in pursuants of acts of Congress, which have been
designated as Congressional-Executive Agreements