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PHILIPPINES

AR-10- t53 NOT -FOR PUBLICATION


A M E R I C A N U N I V E R S I T I E S F I E L D S T A F F
522 HFTH AVENUE
NEW YORK 36. N. Y.
THE UNITED STATES PUSHES PHI LI PPI NE
LAND REFORM AND GETS NOWHERE
A St af f l e t t e r from Albert Ravenholt
Manila,
June 17, 1953
Dear Associ at e:
When the Second Philippine Congress adjourned i t s f our t h
sessi on t hree weeks ago without enacting any si gni f i cant land
reform l egi s l at i on, it administered a major defeat t o American
policy i n these Islands. This ref'usal of the Philippine
Government t o perform one of i t s major commitments made
as a condition for American ai d i ndi cat es the p' ol i t i cal power
exercised here by the land-owning gentry, It suggests a need
f or re-examining t he methods t he United St at es has employed in
encouraging t hi s underdeveloped young protege republic t o
modernize i t s oft en feudal land-use pract i ces. Our f ai l ur e
t o secure reforms has l e f t the discontented Fi l i pi no tenant
farmer more dependent f or any improvement i n hi s l o t upon
the pol i t i c a l fact i ons st ruggl i ng f or power here i n t hi s
pr esi dent i al el ect i on year -- most ordinary farmers lack
the experience and dependable l ocal l eaders needed t o organize
pol i t i cal l y for t he i r own ends.
On the 12th of September, 1952, U.S. Ambassador Raymond
Spruance delivered t o t he Phi1ippl.de Foreign O f f i ce t hree
copies of a report ent i t l ed Phi l i ~pi ne Land Tenure Reform -
Analysis and Recommendations, prepared here by t kae Mutual
Securi t y Agency. This was the f i r s t American attempt t o
secure performance of the phi l i ppi ne Government's pledge
t o implement a program of land r edi st r i but i on through the
purchase of l arge es t at es for r esal e t o small farmers and to
provide t enant s with great er secur i t y of tenure and a more
equi t abl e share of tkheir crops. The pledge was incorporated
i n the Quirino-Foster Agreement of November, 1950, when t he
Philippine Government i n r et ur n f or American t echni cal and
economic ai d promised a I t . . . bold implementation of measures
t hat w i l l bring about a higher degree of soci al justice i n
the Philippinestt i n l i ne with recommendations of the Bel l
Mission,which had surveyed the Islands ear l i er t hat year.
Later ths Philippine Congress had committed i t s el f i n a
f omai resolution t o support the Agreement and the Missionls
recammendat ion s ,
Des i t e these subst ant i al beginnings, the report dekiv-
! ered by he American Ambassador f or transmittal t o President
Elpidio Quirino was ignored by the Philippine Government
unt i l l a t e December when the l ocal and American press secured
access t o several copies and began publishing excerpts. Sud-
denly land reform became important and controversial news.
Although much of the information included was gleaned from
ear l i er findings of off i cf a1 investigations and census
figures "The Hardie ReportM -- named af t er MSA Land Tenure
speci al i st Robert Hardie -- was described by House Speaker
Eugenio Perez as "an insidious and systematic release of
confidential MSA reports , Tr Jose Yulo, wealthy chairman of
the Philippine Council f or United States Aid, publicly denied
he had ever received a copy of the report, which had been
prepared with his f u l l knowledge, While a delegation of
Central Luzon farmers organized by the -Liberal Party cal l ed
upon President Quirino t o assure him t hat a l l was peace and
order in t hei r region, one of the l arger landowners i n the
area was assassinated by his tenants, Nacionalista Party
opposition leaders defended "The Reportw and it was endorsed
by the Manila Junior Chamber of Commerce and other ci vi c
groups, Provincial governors announced their support or
opposition t o Hardie's findings, often on the basis of t hei r
pol i t i cal allegiance. College students held a large r al l y
i n downtown Manila, asking t hat the land reform recommenda-
tions be upheld. The President t s brother, Judge Antonio
Quirino, cr i t i ci zed the Hagdie Report and Americans i n
general as %nemies arrest i ng Philippine Economic de~elopment.~'
The Committee on Un-Filipino Act i vi t i es of the Philippine
Congress launched a special investigation and several months
l at er published a 103-page "preliminary study and analysisn
purporting t o show a si mi l ari t y between the MSA findings
and Communist charges of poverty and di ssat i sfact i on among
tenant farmers.
During a l l t hi s noisy discussion refl ect i ng i n part the
temper of the approaching elections, the American Embassy
and MSA Mission refused t o issue or deny statements. In a
confi dent i al conference with t he seni or American of f i c i a l s
Presi dent Quirino deplored publ i cat i on of t he Report and
admitted t he accuracy of i t s. cont ent s. But he f ai l ed t o
promise remedial a c t ion. Publicly t he President t r i e d t o
dodge the i ssue by announcing that hi s sol ut i on was tha opening Q
of new lands. Meanwhile, the MSA s peci al i s t s i n cooperation
with t he i r Fi l i pi no counterparts draft ed speci f i c proposals
f or land reform l egi sl at i on. A nLease-hold Tenancy Acttt was
prepared t hat would l egal l y abol i sh t he present "Kasama
tenancy system" whereby t he landlord and tenant occupy the
l egal posi t i on of partners. Under the old pract i ce t he land-
l or d has f u l l cont rol over management and has a pr i or l i e n on
up t o 85 percent of the t enant sf share of t he crop t hat t he
owner oft en r et ai ns f or himself i n the form of i nt erest ,
charges on loans, charges f or t enant ' s use of water buffal o
and equipment, et c. This proposed a c t provided f or a l ease-
hold cont ract between tenant and land owner si mi l ar t o American
pr act i ce and est abl i shed guiding pri nci pl es i n ant i ci pat i on
of the time when such cont ract s could be wri t t en f or a l l
farmers rent i ng land. The present l egal rent cei l i ng of 30
percent on r i ce crops was extended t o include a l l crops and
maximum charges were fi xed f o r the use of work animals and
t ool s.
A second "Court of Agrarian Relations Acttt was dr af t ed
t o give tenant farmers and land owners easi er and inexpensive
access t o speci al court s f or settlement of disputes. This
Act al s o would have est abl i shed of f i c i a l machinery f or i nvest i -
gating and bringing t o t r i a l those who vi ol at ed land tenure
laws. An amendment t o the present Minimum Wage Law a l s o was
prepared t o di f f er ent i at e l egal l y between tenants and farm
l aborers, who ar e of t en considered as interchangeable under
the exi st i ng "kasamaH system. Because operators of farms
with l e s s than 30 acres (t hree times t he s i ze of the average
farm) ar e exempt from t he provisions of the old minimum wage
law t hi s amendment was needed t o prevent landlords from can-
vert i ng t hei r t enant s i nt o laborers.
The l egi s l at i on draft ed under MSA guidance was designed
t o al l evi at e t he most acut e causes of tenant discontent and t o
i ni t i a t e an i nt egrat ed land reform program.
A t a fut ure dat e
the MSA s peci al i s t s planned t o encourage government purchase
of l arge land holdings f or subdivision and r esal e t o i ndi vi dual
farmers. The governing council of PHILCUSA, which r ef l ect s
t he at t i t udes of President Quirinols Li beral Party, refused
t o approve the proposed l egi sl at i on o r t o endorse it t o t he
spring sessi on of t he Phi l i ppi ne Congress.
But several s t af f
members of t hi s of f i c i a l Philippine organization est abl i shed
t o cooperate with MSA worked pri vat el y with i nt erest ed Fi l i -
pino newspapermen and slipped copies of the proposed l egi sl a-
t i on t o sympathetic members of Congress, They prodded these
Congressmen t o push the l egi sl at i on. And l at e i n the fourt h
session the "Lease-hold Tenancy Actti was reported out of the
House Agrarian and Social Welfare Committee. It was recom-
mended t o be consolidated with a similar act passed by the
Nacionalista controlled Senate l a s t year and calendared f or
a second reading. The tlCourt of Agrarian Relations Actrt was
reported out of the House Judiciary Committee, al so wi t h the
recommendation that it be calendared for a second reading.
But the Liberal Party leadership controlling the House refused
t o act on ei t her b i l l , leaving both t o expire with t h i s
Congress, An inadequate b i l l designed t o buy est at es volun-
t ar i l y offered for sale by owners t hat was introduced l a s t
year suffered a similar f at e, The amendment t o the Minimum
Wage Law never was introduced.into Congress. Unless another
special session of the second Philippine Congress i s called
before the elections next November any of t hi s l egi sl at i on
t hat is t o be considered again mud be reintroduced i nt o the
Third philippine Congress next year,
In retrospect Filipinos and ' ~meri cans most intimately
concerned with land reform recognize they made several mistakes
t hat contributed t o t hi s defeat of t hei r l egi sl at i on i n Congmss,
~t l eas t some Americans f ai l ed t o real i ze t hat President
Qui ri nol s promise t o act as embodied i n the Quirino-Foster
Agreement could not be depended upon i n an el ect i on year when
he and his Party are sol i ci t i ng support from the landowners
who boss most provincial pol i t i cal machines. The President
and hi s chief henchmen are convinced t hat the United St at es
must continue t o aid the Philippines economically and mi l i t ar i l y
regardless of what they do. So f a r no responsible American
-
of f i ci al has disabused these Filipino pol i t i ci ans of t hi s
assumption, nor convinced them t hat irresponsible verbal
attacks upon the United States w i l l cost them anything.
The present Philippine Government is modelled l argel y
af t er the pat t ern of authority t hat grew up here during the
period of United St at es colonial administration. The President
retains much of ths centralized power t hat formerly belonged
t o the American Governor-Generawhen a community needs a
bridge or typhoon r el i ef they send a delegation t o see the
President, Once President Quirino had indicated even h i s un-
of f i ci al opposition t o action on land reform, it became
dangerous f or an of f i ci al i n any subordinate branch of the
government t o f aci l i t at e such action. It appears noTa t hat
t he American of f i ci al s here might have been more successful
i f they had delayed f or nal diplomatic present at i on of the land
tenure reforrn report unt i l a f t e r they had mobilized widespread
support f or such act i on - ~ i t h i n lower echelons of the Phi l i p-
pine Government. If Fi l i pi no s peci al i s t s within the Depart-
ments of Just i ce and Agriculture, t he National Economic
Council and ot her government agencies concerned had reached
r el at i ve agreement i n advance on the kind of i n i t i a l program
t hat would work fewer Congressmen would have opposed the
l egi sl at i on. 1i is possible t hat t he great popular sent i -
ment supporting land reform t hat responded t o publ i cat i on
of the Wardie Reportn could have been molded and di rect ed
f or pol i t i cal act i on t h a t would have made land r ef om p o l i t
i cal l v desi rabl e f or the present government. The Philfppine
Government and Congress ar e ujnusually sensi t i ve t o the
opinions expressed by t he two and one-half mi l l i on Fi l i pi nos
who l i ve i n and around Manila. And these ar e the Fi l i pi nos
who have easy access t o newspapers and radios and ar e not
af r ai d t o express themselves; they ar e f r ee from the i nt i -
midation t hat keeps so many r ur al ci t i zens from voicing
opposition t o t he i r l ocal gentry,
The i nt egrat i on of economic and soci al development
ef f or t s with popular " f e l t needstt i n order t o prompt act i on
by a rel uct ant government requi res r ar e s ki l l s on t he par t
of the responsible American of f i ci al s and technicians .
They must be able t o funct i on qui et l y i n the background,
supporting , guiding- and encouraging t he Fi l i pi nos who do
the act ual work and, a t t he s t r at egi c moment, cont ri but i ng
t he leverage t hat ,American ai d makes'possible. One sympa-
t het i c Fi l i pi no of f i c i a l who helped unof f i ci al l y i n t he
attempt t o i ni t i a t e land reform explained: "It' s r eal 1
a b a n rel at i onshi p problem." He added that forei gn %ch-
ni ci ans had proven most ef f ect i ve here when they const ant l y
kept i n mind t he pol i t i c a l and s oci al pressures within
which operate the Fi l i pi no groups they ar e assi st i ng,
In
t he i r ef f or t s t o i ni t i a t e land reform here United St at es
diplomatic and t achni cal represent at i ves f ai l ed t o do some
important missionary work among Fi l i pi no Congressmen and
ot her persons who wield power.
No one explained i ndi vi dual l y
t o these Fi l i pi nos the importance of improved land tenure
pr act i ces f or achieving increased agr i cul t ur al production.
Most Fi l i pi no l eaders ar e anxious t o s t a r t i ndust r i al i zi ng
t he i r country. But they were never educated t o the possible
use of a land reform program t o speed i ndust r i al i zat i on by
s hi f t i ng capi t al from r ur al t o urban areas.
American speci al -
i s t s were discouraged from est abl i shi ng cordi al personal re-
l at i ons with Filipino pol i t i cal leaders and encouraging t hei r
acceptance of new at t i t udes, 'Iths MSA Mission has not incorporated
into the i rri gat i on prograqdeveloped jointly with the Philippine
Govermnent,principles of limitation of individual holdings on land
t hat benefits from public investment, such as have been established
practice In the opening up of ths American West, These and
ther omissions i n the United States ef f or t often refl ect a
. 8b mpartmentalization of thinking among our technicians. Relatively
few of the Amerqcan speci al i st s seem aware of the social
rgsults of the application of t hei r technology. With some out--
standing exceptions, they f a i l t o rel at e t hei r own ef f or t s t o
the achievement of broad fundamental changes such as land reform,
The earl y prospscts for improving the l ot of the st eadi l y
increasing number of Filipino tenant farmers now depend largely
upon the elections t o be held here next Ebvember. President
Quirlno, who i s seeking reelection on the Liberal Party Ticket,
has become more dependent for support upon the large landowners,
Carlos P, Romulo and Vice President Fernando Lopez, a wealtw
sugar planter took t hei r followers out of the Liberal Partg:
and are organ I zing a new Democratic Partp* So f ar they have
corralled pol i t i cal supporters wherever possible and shown l i t t l e
prmi se of evolving a socially meaningful program, other than
t o demand Ita change1( i n t hei r favor. Ramon Magsagsay has
carried hi s campaign as Nacionalista Party candidate for president
into remote "barriosu hitherto ignored by offi ci al s and politicians.
He promises t o build community water systems, open more schools
issue land t i t l e s and meet other urgent demands of the rural f d k .
He has avoided t o date di rect attacks upon the landed gentry who
also are strong i n hi s own party, But Magsaysay does appreciate
the cr i t i cal need for land reform and has privately said t hat i f
elected he w i l l take f i r m action. To the extent that ordinary
Filipino farmers organize pol i t i cal l y and support candidates for
the Senate and House they w i l l be able t o i nsi st upon performance
i n t hei r i nt erest s when the Third Congress meets. But the land-
owning i nt erest s are entrenched a t most levels of control and/or
influence i n the Philippines and the prevailing philosophy
regarding property supports t hei r position. Even i f the more
progressive candidates are elected here next November, American
help w i l l be needed i n order t o peacefully modify t hi s ssci al
structure and to offer the tenant' farmer more productxve and
remunerative opportunitiesa
% Uni t ed States Embassy,
Mani l a, Phi l i ppi ne Islands.

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