The Soviet Union is seeking a deal with the Philippines to allow repair of Soviet military vessels at a shipyard adjacent to the strategic U.S. naval base at Subic Bay, government officials say. Dan Howard, the Pentagon's chief spokesman, said Tuesday the United States ``would not look favorably'' on any such arrangement because of ``the opportunities it might afford the Soviets to spy on our activities at Subic Bay.'' ``The Philippine government is well aware of our feelings on that,'' he said. At the same time, Howard said he could not confirm that negotiations between the Filipinos and the Soviets were taking place. There were conflicting reports Tuesday about the status of the reported Soviet request. One official said a deal between the two countries had already been signed, while another that the Philippines was ``tempted'' by the offer but had made no decision. A third official said there was considerable confusion about the intentions of both the Soviets and the Philippines. All the officials asked that their names not be used. The Philippines has rejected previous Soviet requests for access to the Philseco repair yard. But economic and political factors appear to be prompting it to reassess that position, the officials said. The Philseco yard, a joint venture between Philippine and Japanese interests, has been losing money. In addition, the new Soviet proposal comes at a time when many Filipinos are seeking a relationship more independent of the United States. But the officials said close Soviet access to Subic Bay would not only be an intelligence-gathering bonus for Moscow but would also enable Soviet vessels to remain longer in the region, thus enhancing the Soviets' military capability, the officials said. The desire for ship repair facilities apparently reflects a major Soviet military buildup in the Pacific in recent years. According to the Pentagon, the Kremlin has increased the number of ships and submarines in its Pacific fleet by 40 vessels to a total of 860 since the end of 1984. Approval of the Soviet proposal also would be seen as further evidence of the Philippines' desire to dissociate itself from the United States. A more independent Filipino stance was apparent during recent base negotiations with the United States, which frequently were marked by bitter acrimony. A week ago, the two countries signed an agreement to provide the Philippines with $962 million in military and economic aid over the next two years in exchange for continued U.S. access to Subic and to Clark Air Base. They are the largest U.S. military installations overseas. As a reflection of the continuing strain in relations, both the Philippines and the United States have left open the possibility that their 1947 base agreement will not be renewed when it expires in 1991. Reaction in the Philippines to the aid agreement has been hostile, partly because Filipino negotiators backed away from their original demand for more than $1 billion annually in assistance. Still, the $481 million in annual aid agreed to for 1990 and 1991 represented a sharp increase from the $180 million the United States had been pledging since 1983. As U.S. officials see it, Philippine President Corazon Aquino could seek to placate opposition to the aid agreement by approving the Soviet request for a ship repair deal at Philseco.
