U.S Reportedly to Pay $550 Million for Filipino Bases

MANILA — U.S. and Filipino officials have reached tentative agreement for Washington to provide compensation worth more than $550 million a year to use its six bases here, official sources said today.

The sources, who spoke on condition of anonymity, told reporters that the two sides had nearly finished reviewing an agreement governing the bases, which are the largest U.S. garrison in Southeast Asia. An accord on new compensation terms through 1991 is expected within a week, they said.

In Washington, a U.S. official who has kept a close eye on the negotiations denied there was an agreement. The official refused to be identified.

The United States now pays about $180 million a year for the bases. The Filipino panel reportedly demanded up to $1.2 billion annually for the final two years of the agreement.

Negotiators agreed on a basic annual compensation package of between $550 million and $580 million in economic support, military assistance and commodities, mostly wheat, the sources said.