On 16 September 1991, the Philippine Senate refused to extend the basic agreement by a narrow majority and, despite further efforts to save the situation, the two sides failed to reach an agreement. On December 6, 1991, the Philippine government informed the United States that it had one year to complete the withdrawal. This withdrawal went smoothly and ended prematurely, with the last U.S. forces withdrawn on November 24, 1992. Initially, the U.S. government sold more than $1.3 billion in assets to the Philippines, including an airport and a ship repair plant. Agencies created by the Philippine government have rebuilt the former military bases for civilian commercial purposes, with Subic Bay serving as the flagship of these efforts. The Philippine government announced on July 16, 2015 that it would relaunch a U.S.-built deepwater naval base at Subic Bay The vote resulted in 11 senators supporting an extension of the contract and 12 senators in favor of cracking down on the agreement. The list of senators who voted for the basic contract – to keep the bases – were Mamintal Tamano, Neptali Gonzales Sr., Heherson Alvarez, Edgardo Angara, Ernesto Herrera, Jose Lina Jr., John Osmea, Vicente Paterno, Santanina Rasul, Alberto Romulo and Leticia Ramos Shahani. The views of the Department of Foreign Affairs and other concerned officials within the government will therefore be brought to your attention to familiarize you with your government`s position on this important issue. Embassies 1120 of 23 August 1947 and 1185 of 12 September 194735 were carefully considered and are, according to the Ministry, further evidence of the need for some sort of clarification between the Philippines and the United States regarding the specific military programme of the two Philippine governments.
As a step in that direction, the department believes that consideration should be given to informing the Philippine government that, in our best judgment, the military force we have previously caught up with as a minimum for the Philippines is not only greater than what this government requires, but is greater than what the Philippines` resources justify from a financial point of view. The military estimate of the situation, which was sent to the Philippines by the United States Military Advisory Group and forwarded to the Ministry of War of Colonel R. H. [page 1120]Kreuter, military attaché, dated August 15, 1947, states that “it is still agreed that, since the Republic wants an army, the most practical plan is to develop a small military organization within the financial capabilities of the Republic. which can form a civilian reserve army capable of withstanding any aggression until the United Nations or other friendly powers help. It seems extremely desirable that this program should come into force for the Republic and, if the Philippine government insists on implementing a much larger military programme, it is possible that the Philippine government may have to openly inform the Philippine government that it can possibly count on the support of that government to maintain its military organization, which will not come for a number of reasons.