THE Romulo had no authority to return or promise to return the
TREASURER OF THE PHILIPPINES, ET AL. aforesaid sums of money through the so-called Romulo- Snyder Agreement. DOCTRINE: The defendants moved to dismiss, alleging Governmental ART. VII. Section 21. No treaty or international immunity from suit. But the court required an answer, and agreement shall be valid and effective unless then heard the case merits. Thereafter, it dismissed the concurred in by at least two-thirds of all the Members complaint, upheld the validity of the Agreement and of the Senate. dissolved the preliminary injunction i had previously issued. The plaintiff appealed. FACTS: In October 1954, the USAFFE Veterans Associations Inc. (Usaffe), prayed in its complaint before the ISSUE: Whether the Romulo-Snyder Agreement is void. Manila court of first instance that the Romulo-Snyder Agreement (1950) whereby the Philippine Government HELD: There is no doubt that President Quirino approved undertook to return to the United States Government in ten the negotiations. And he had power to contract budgetary annual installments, a total of about 35-million dollars loans under Republic Act No. 213, amending the Republic advanced by the United States to, but unexpanded by, the Act No. 16. The most important argument, however, rests National Defense Forces of the Philippines be annulled, that on the lack of ratification of the Agreement by the Senate of payments thereunder be declared illegal and that the Philippines to make it binding on this Government. On defendants as officers of the Philippine Republic be this matter, the defendants explain as follows: restrained from disbursing any funds in the National Treasury in pursuance of said Agreement. Said Usaffe That the agreement is not a "treaty" as that term is used in Veterans further asked that the moneys available, instead the Constitution, is conceded. The agreement was never of being remitted to the United States, should be turned submitted to the Senate for concurrence (Art. VII, Sec. 10 over to the Finance Service of the Armed Forces of the (7). However, it must be noted that treaty is not the only Philippines for the payment of all pending claims of the form that an international agreement may assume. For the veterans represented by plaintiff. grant of the treaty-making power to the Executive and the Senate does not exhaust the power of the government over The complaint rested on plaintiff's three propositions: first, international relations. Consequently, executive agreements that the funds to be "returned" under the Agreement were may be entered with other states and are effective even funds appropriated by the American Congress for the without the concurrence of the Senate. It is observed in this Philippine army, actually delivered to the Philippine connection that from the point of view of the international Government and actually owned by said Government; law, there is no difference between treaties and executive second, that U.S. Secretary Snyder of the Treasury, had no agreements in their binding effect upon states concerned as authority to retake such funds from the P.I. Government; long as the negotiating functionaries have remained within and third, that Philippine foreign Secretary Carlos P. their powers. "The distinction between so-called executive Even granting, arguendo, that there was no legislative agreements" and "treaties" is purely a constitutional one authorization, it is hereby maintained that the Romulo- and has no international legal significance". Snyder Agreement was legally and validly entered into to conform to the second category, namely, "agreements There are now various forms of such pacts or agreements entered into purely as executive acts without legislative entered into by and between sovereign states which do not authorization." This second category usually includes necessarily come under the strict sense of a treaty and money agreements relating to the settlement of pecuniary which do not require ratification or consent of the legislative claims of citizens. It may be said that this method of body of the State, but nevertheless, are considered valid settling such claims has come to be the usual way of international agreements. dealing with matters of this kind. In the leading case of Altman vs, U. S., 224, U. S. 583, it Such considerations seems persuasive; indeed, the was held that "an international compact negotiated between Agreement was not submitted to the U.S. Senate either; but the representatives of two sovereign nations and made in we do not stop to check the authorities above listed nor test the name and or behalf of the contracting parties and the conclusions derived therefrom in order to render a dealing with important commercial relations between the definite pronouncement, for the reason that our Senate two countries, is a treaty both internationally although as Resolution No. 153 practically admits the validity and an executive agreement it is not technically a treaty binding force of such Agreement. Furthermore, the acts of requiring the advice and consent of the Senate. Congress Appropriating funds for the yearly installments necessary to comply with such Agreements constitute a Nature of Executive Agreements. ratification thereof, which places the question the validity out of the Court's reach, no constitutional principle having Executive Agreements fall into two classes: (1) agreements been invoked to restrict Congress' plenary power to made purely as executive acts affecting external relations appropriate funds-loan or no loan. and independent of or without legislative authorization, which may be termed as presidential agreements and (2) Petition denied. agreements entered into in pursuants of acts of Congress, which have been designated as Congressional-Executive Agreements.
The Romulo-Snyder Agreement may fall under any of these
two classes, for precisely on 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.