Talks on the future of American military bases in the Philippines wound up deadlocked Saturday over how much Washington will pay and how long the installations can stay.
U.S. spokesman Stanley Schrager said "technical consultations" would resume in Washington later this month.The current round of talks had been scheduled to end Friday but lasted into the night in an effort to reach an accord. Chief U.S. negotiator Richard Armitage postponed his departure until Saturday to allow more time.
Both sides expressed optimism that an accord could be reached despite differences on a few key issues.
At stake is the future of Clark Air Base, the Subic Bay naval base and four smaller facilities whose lease expires Sept. 16. The bases are among the oldest and largest U.S. installations on foreign soil.
A spokesman for the Philippine delegation, Raul Rabe, said Manila wanted $825 million a year for a "seven-year package" ending in 1998, the 100th anniversary of the annexation of the Philippines by the United States from Spain.
He said the United States had offered $520 million a year, including $200 million as part of a multilateral aid program for the Philippines.
Rabe said the Philippines was willing to accept $400 million in cash and the rest in non-budgetary assistance such as debt relief and increased trade access to the United States.
Schrager said substantial progress had been made on arrangements for the status of U.S. troops stationed in the Philippines, including criminal jurisdiction, taxes and other issues.
Rabe said the Philippines was insisting on compensation guarantees because the country needed a reliable flow of funds for its economic development.
American officials hoped to finish work on the compensation issue ahead of this month's deadline for submitting the federal budget to the U.S. Congress.