Philippines
Until November 1992, pursuant to the 1947 Military Bases Agreement, the United States maintained and operated major facilities at Clark Air Base, Subic Bay Naval complex, and several small subsidiary installations in the Philippines. In August 1991, negotiators from the two countries reached agreement on a draft treaty providing for use of Subic Bay Naval Base by U.S. forces for 10 years. The draft treaty did not include use of Clark Air Base, which had been so heavily damaged by the 1991 eruption of Mt. Pinatubo that the United States decided to abandon it.
On September 16, 1991, the Philippine Senate rejected the bases treaty, and despite further efforts to salvage the situation, the two sides could not reach agreement. As a result, the Philippine government informed the United States on December 6, 1991, that it would have one year to complete withdrawal. That withdrawal went smoothly and was completed ahead of schedule, with the last U.S. forces departing on November 24, 1992. On departure, the U.S. government turned over assets worth more than $1.3 billion to the Philippines, including an airport and a ship-repair facility. Agencies formed by the Philippine government are now converting the former military bases for civilian commercial use, with Subic Bay serving as a flagship for that effort. Discussions continue on the nature of a status of forces agreement appropriate to the post-bases era.
The post-U.S. bases era has seen U.S.-Philippine relations improve and broaden, focusing more prominently on economic and commercial ties while maintaining the importance of the security dimension. Philippine domestic political stability has resulted in increased U.S. investment in the country, while a strong security relationship rests on the U.S.-Philippines Mutual Defense Treaty.
