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Institute of Pacific Relations

Philippine Foreign Policy


Author(s): Russell H. Fifield
Source: Far Eastern Survey, Vol. 20, No. 4 (Feb. 21, 1951), pp. 33-38
Published by: Institute of Pacific Relations
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AMERICAN INSTITUTE OF PACIFIC RELATIONS

Philippine Foreign Policy

Philippines has played active role in UN, championed colonial independence,

opposed Communism, and kept close ties with US despite some divergences.

FIFIELD to the United Nations than to the United States, which


By RUSSELL H.
may be an effort to camouflage the degree of intimacy
establishment of the Republic of the Philip? with America. Philippine interest in the world organiza?
The pines on July 4, 1946 marked the birth of a new tion was especially noticeable during the period when
state in southern Asia. Others soon followed?India, Brigadier General Garlos P. Romulo was President of
Pakistan, Ceylon, Burma, Indonesia, and, with qualifi- the UN General Assembly, and the Korean crisis in
cations, Vietnam, Cambodia, and Laos?forming a the summer of 1950 increased Philippine concern for
new galaxy in world politics. Great interest attaches to the fate of the United Nations.
the role of these former colonial areas as independent The march of Asian Gommunism has likewise in-
members of the society of nations. What part has the fluenced Philippine attitudes in foreign affairs. The
Philippines played on the world stage?1 establishment of the People's Republic of Ghina, the
Certain basic factors have molded Philippine foreign threat of a Gommunist invasion of Formosa, the civil
war in Indochina, and the growing menace of the Com-
policy, of which the first and by far the foremost is the
influence of the United States. Some Filipinos assert munist-led Hukbalahap2 inside the Islands have raised a
serious question of Philippine security, not only from
frankly that their foreign policy is made in Washing-
outside aggression but also from internal revolution.
ton, a statement that is exaggerated but contains some
truth. The many and long-standing ties between the Even before independence, the United States took
two countries necessarily condition Philippine decisions. steps to aid the Filipinos to establish a foreign service

Nevertheless, differences of opinion do exist between 2 See Russell H. Fifield, "The Hukbalahap Today," Far
the Philippine and American governments, and no one Eastern Survey, January 24, 1951.
can doubt that thoughtful Filipinos are keenly aware
of their independent status.
The existence of the United Nations has also strongly FEBRUARY 21, 1951 VOL XX NO. 4
affected Philippine foreign policy. Some Filipinos, in-
deed, say that their foreign policy is more closely tied IN THIS ISSUE

Mr. Fifield, a former Foreign Service officer in China and ? Philippine Foreign Policy
Formosa, is now Associate Professor of Political Science at
the University of Michigan. He spent last summer in the by Russell H. Fifield
Philippines, making a study of political conditions.
? Indonesia and the West
1 Both President Elpidio Quirino and Foreign Minister
Carlos P. Romulo outlined the foreign policy of their country by Justus M. van der Kroef
in interviews with the author in the surnmer of 1950. A
number of their ideas are incorporated in this article. For ? More Impressions of Lucknow
an official publication on Philippine foreign policy, see the
Department of Foreign Affairs, Quarterly Review, the first by M. R. Masani
issue of which was published in May 1950.
? 33 ?

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and a department of foreign affairs.3 A senior Amer? participated in the subsidiary organizations of the UN,
ican Foreign Service officer, Richard P. Butrick, was such as the International Trade Organization, the
detailed to Manila to assist in the creation of a foreign Food and Agriculture Organization, the International
office, and a number of Filipinos were trained in the Labor Organization, the International Civil Aviation
Department of State in Washington for the Philip? Organization, the United Nations Educational, Scienti-
pine diplomatic and consular service. The structure of fic and Gultural Organization, and the Economic Com?
the Philippine foreign service is closely patterned on that mission for Asia and the Far East. Philippine repre-
of the United States. sentatives, moreover, have taken part in the work of the
UN commissions on Palestine and Korea.

Diplomatic Relations Philippine policy in the United Nations reflects a


The Republic of the Philippines soon obtained diplo? combination of idealism in its concern for dependent
matic recognition from most of the states of the world, areas and realism with respect to the cold war at Lake
with the notable exception of the Soviet Union and Success. The voting of the Republic on the issues be-
its satellites. In the summer of 1950 some thirty coun? fore the world organization clearly indicates that the
tries maintained diplomatic or consular officials, or nation is on the side of the West. Underlying this pol?

both, in Manila, including the United States, Great icy is the clear realization that the security of a small
state is perilous in these turbulent years. At the same
Britain, France, Nationalist China, Argentina, Australia,
time the Philippines values the United Nations as an
Belgium, Canada, Indonesia, India, Italy, the Nether-
lands, Thailand, and Spain. For its part the Philippines organ of the "smaller nations, often voiceless in the
had a mission to the United Nations and to SCAP past."5
in Japan, an embassy and several consulates in the Within the world organization the Philippines has not
United States, and legations or consulates in Formosa, hesitated to express its attitude toward Spain, its mother
Great Britain, Italy, Thailand, Argentina, Indonesia, country for some three hundred years. The Philippines
and Spain, united in the common religion of Roman
Australia, Spain, India, Pakistan, and Hongkong.
Catholicism and by many cultural similarities, have
By the spring of 1950 the Philippines had concluded a
number of agreements and treaties with foreign powers established legations in each other's capitals. Malacanan
?consular favors the admission of Spain to the technical or?
conventions, political and commercial agree?
ments, amity treaties, and cultural and civil aviation ganizations of the United Nations and the termination
of the diplomatic boycott of the Madrid government.6
agreements.4 Among the states with which agreements
were concluded were the United States, Turkey, Thai?
Regional Conferences
land, Italy, Spain, Pakistan, and Greece. Negotiations
were under way on treaties and agreements with Israel, In regional conferences in the Far East, the Philip?
France, Australia, Egypt, Saudi Arabia, Argentina, pines has tried to stress the need for unity in south?
Nationalist China, India, Brazil, Mexico, and Burma. east Asia.7 Citizens of the Republic participated in the
The growing list of such treaties and agreements fur- Asian Relations Conference held in New Delhi in 1947,
ther indicates the general acceptance of the Philippines which was non-governmental and sought to promote
in the family of nations outside the Soviet bloc. regional cooperation.8 In 1949 the Philippines attended
The Philippines has played a significant role in the New Delhi conference called by India to support
international organizations, both global and regional. the Indonesians in their struggle for independence.9
Although not yet independent, the Commonwealth of 5 Privado G. Jimenez, "The Fourth General Assembly,"
the Philippines participated in the United Nations
Quarterly Review, May 1950, p. 24.
Conference on International Organization at San 6 Foreign Minister Romulo expressed this viewpoint in a
Francisco in 1945, and became a charter member of speech in Rio de Janeiro on October 24, 1950 (New York
the United Nations Organization. In addition to its Times, October 25, 1950). The Philippines voted in favor of
the resolution supporting this policy that was approved by
membership in the General Assembly, the Philippines the UN General Assembly on November 4, 1950.
has been elected as one of the non-permanent members 7 This concept is well expressed in the "Letter of Instruc-
of the Trusteeship Council, though not yet of the Se? tions" from President Quirino to Foreign Minister Romulo
curity Council. The Republic of the Philippines has on the formation of a proposed Pacific Union. Quarterly
Review, May 1950, pp. 34-36. Cf. Werner Levi, "Union in
3 Edward W. Mill, "Philippine Foreign Affairs Training Asia?", Far Eastern Survey, August 16, 1950.
Program," Department of State Bulletin, February 3, 1946, 8 See Report and Proceedings, Asian Relations, Asian Rela?
p. 148. tions Organization, New Delhi, 1948.
4 The Department of Foreign Affairs has begun the pub- 9 The text of the New Delhi resolution on Indonesia, sup-
lication of the texts of these treaties in The Treaty Series. ported by the Philippines, may be found in the New York
See Vol. I, Nos. 1 and 2 (Manila, L950). Times, January 24, 1949.

34 FAR EASTERN SURVEY

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Finally, in 1950, the Philippines played host to the the best of a bad situation. Considerable anti-Japanese
Baguio Conference, where representatives from India, feeling still exists among the Filipinos and this senti-
Pakistan, Ceylon, Indonesia, Thailand, Australia, and ment is definitely reflected in government circles. In
the Philippines discussed the problems of southeast 1939 about 30,000 Japanese resided in the Philippines,
Asia.10 of whom about 18,000 lived in Davao in the island
The nations of southeast Asia have not reached any of Mindanao. Before Pearl Harbor Japanese entre-
agreement on a regional organization for the area like preneur investments in the Islands were estimated at
the Organization of American States, or on a defense $25,000,000 to $30,000,000. The Japanese played an
pact like the North Atlantic Treaty. The reasons for important part in the deep-sea and offshore fishing in?
this failure are important in understanding the politics dustry and they practically monopolized abaca produc?
of southeast Asia. One of them is rivalry for leadership, tion in Davao. Since V-J Day the Japanese have been
to which both the Philippines and India have at times repatriated and the Filipinos have no desire to see them
aspired. Although India is the largest of the new back.
states in area and population, Prime Minister Nehru The Republic of the Philippines has favored a
is not yet the spokesman for the whole region. More- "tough" policy toward Japan in the peace treaty. The
over, a number of the new states are closely associated Republic claims about $8 billion in reparations, of
with their former mother countries, as illustrated by which over $5 billion arise from damages to private
British bases in Ceylon and American bases in the property and industrial plants and over $3 billion result
Philippines. The countries of the region, furthermore, from a government claim for goods and services
differ considerably in their attitudes toward the menace acquired by the Japanese during the occupation through
of Communist aggression. In this respect the influence the issuance of Japanese military currency.12 In view
of Nehru is strong in Indonesia and Burma. Finally, of the devastation suffered by the Philippines during
there does not exist at present any general regional the war, the payment of Japanese reparations on an
consciousness among the peoples or the leaders of south? extensive scale was expected to assist in the recovery
east Asia. For example, most Philippine university program of the Islands.
students show little interest in the languages, cultures,
and histories of their neighbors.11 A few leaders of the Attitude Toward Japanese Rearmament
area like Foreign Minister Romulo are trying to in- The rearming of Japan has been staunchly opposed by
culcate a regional consciousness but the task is difficult. the Philippines. The fear is prevalent in the Islands
The development of nationalism on a more intensive that a militant Japan would once more seek to create
scale within the respective states is more likely than the a New Order in Greater East Asia at the expense of
early growth of regional solidarity. the other peoples. Although admiration for General
The foreign policy of the Philippines toward its Asia- Douglas MacArthur is widespread in the Philippines,
tic neighbors is significant in the contemporary interna? his reputed attitude toward Japan is not approved. The
tional relations of the Far East. Among these neighbors terms of the Japanese peace treaty, particularly with
should be mentioned Japan, China, Korea, and the reference to defense and reparations, will cause con?
new states of southeast Asia, particularly Indonesia, siderable interest among the Filipinos. If the American
Vietnam, and India. The Philippines generally follows viewpoint on procedure is accepted, the Philippines as
American policy in China and Korea but does not agree a member of the Far Eastern Commission will partici-
in some respects with the American attitude toward pate in the drafting of the peace treaty. A provisional
Japan and Vietnam. draft prepared by the United States has already been
sent to Manila.
The Philippines and Japan Postwar trade between Japan and the Philippines
Fundamental in understanding the Philippine policy has now been resumed. In the years before the war,
toward Japan is the memory of the long Japanese occu- trade between the two countries was increasing in im-

pation of the Islands. Collaborators are hated if they portance. The average annual imports into the Philip?
were genuine in their sympathy for Japan but forgiven pines from Japan in the years 1934-38 were valued at
if they were anti-Japanese at heart and only making $12,944,000 and exports to Japan at $7,368,000. Al-
most all the iron ore mined in the Philippines went to
10 Secretariat of the Baguio Conference of 1950, Final Japan. In July 1950 the Republic was granted a maxi-
Act and Proceedings of the Baguio Conference of 1950 mum allocation of $1,420,000 worth of export products
(Manila, 1950). to Japan, divided among copra, iron ore, molasses,
11 This conclusion was drawn by the author in discussions
with professorsand students in the University of the Philip? 12 Marcelino V. Bernardo, "Reparations?A Philippine
pines and Silliman University. View." Quarterly Review, May 1950, p. 11.

FEBRUARY 21. 1951 35

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ramie, and lauan logs.13 During the fall of the previous financial difficulties of the government restricted cx-
year, Japanese galvanized iron sheets and cotton goods tensive aid to the United Nations. The pressure of
were exported to the Philippines in substantial quanti- public opinion, however, led to a strong movement to
ties. send troops to the battle front. In early August the
In view of the rise of militant Communism in the Senate and the House of Representatives in Manila
Far East, the Philippine attitude toward Japan is likely unanimously passed resolutions calling in effect for the
to change. President Elpidio Quirino in a speech on sending of Philippine troops and material to Korea.18
August 3, 1950 significantly stated that in the present The decision of President Quirino to organize and send
struggle between the Communist and democratic ideo- a Philippine contingent to the battle front was welcomed
logies, the Philippines would have to set aside its by the vast majority of the articulate population.19
old animosities and fight with the United States and
Japan if the circumstances demanded such a course of Relations with China and Formosa
action.14
Philippine relations with Communist China and
Kuomintang Formosa are a matter of serious considera-
Policies Toward Korea tion in the Islands. Although only 135,099 Chinese are

Philippine policies toward postwar Korea have been officially registered as aliens, the total number probably
in line with those of the Western states and the United reaches 250,000.20 The Chinese play a very important
Nations. The Philippines supported the early recom- part in Philippine economy, especially in the retail
mendations of the United Nations on Korea, participated trade, the distribution of rice, and the commercial
in the Korean commissions of the UN, and recognized credit facilities of the country. Chinese investments in
the government of the Republic of Korea under the the archipelago may possibly amount to over $100,-

presidency of Syngman Rhee. The Communist invasion 000,000, but trade with Communist China is not very
of Korea on June 25, 1950 came as a tremendous sur- important at the present time. Between 1934 and 1938
China's share in Philippine foreign trade averaged
prise to the Philippines and the dark shadow of a
possible global war was reflected in the statements of only 2.9 percent of all imports and 0.7 percent of
thoughtful Filipinos both inside and outside the gov? exports.
ernment. The Republic The majority of the Chinese in the Philippines are
immediately supported the
action of the Security Council and of the United States still apparently loyal to Chiang Kai-shek, and the
in using armed force to repel the Communist in- government at Malacanan still maintains diplomatic
vaders.15 relations with the Nationalists. The strife in China,
At first the Philippines offered to assist in Korea however, is reflected in the alignment of the five
Chinese dailies that circulate in Manila: three favor
only with certain needed supplies such as copra, coco-
nut oil, rice, and medicine. It became known a little the Kuomintang, one the Communists, and the last tries
later, however, that seventeen Sherman tanks and a to follow a middle course. The Chinese in the archipela?
tank destroyer had left the Islands for Pusan.16 A go are not in general supporting the Communist-led
large number of Filipino veterans and former Philip? Hukbalahap although a few of them are working with
pine Scouts meanwhile volunteered to serve in Korea.17 the Huks. Since a considerable number of Chinese are
Yet the menace of the Hukbalahap at home and the reported to be entering the Islands illicitly, far more
than the annual quota of fifty, some of them may be of
13 Manila Daily Bulletin, July 13, 1950. Communist persuasion. There is little evidence as yet to
14 Ibid., August 4, 1950.
indicate that the mainland Chinese Communists are
15 Note especially the radio speech of President Quirino
on July 15, 1950, when he said: "We have a definite stake sending supplies to the Philippines.
in the Korean war. As a member of the United Nations, we Events in Taiwan are watched with some concern in
have joined hands with other members to rally to the leader? the archipelago to the south. In a press interview on
ship of America in the effort to stop Red aggression there
and thereby prevent it from engulfing us and the rest of the 18 The Senate resolution declared that the Philippines
world." For full text see Sunday Times (Manila), July 16, "should render every possible assistance to the forces of the
1950. United Nations fighting in relation to the Korean crisis."
16 Manila Daily Bulletin, August 5, 1950. An excellent Manila Daily Bulletin, August 8, 1850.
editorial entitled "Our Participation" considers the complex 19 An editorial in the Manila Chronicle on August 9, 1950
problem of the military role of the Philippines in the Korean asserted: "The die is east. We stand with the democracies.
war. This has been made manifest by unanimity in Congress on
17 The American Embassy received numerous inquiries from the question. . . . The decision has been met with overwhelm-
Filipinos about enlisting in the United States forces, and ing support among the people."
issued a statement on July 31 that only Americans could 20 Victor Purcell, "Overseas Chinese and the People's
enlist. Philippines Her aid, August 1, 1950. Republic," Far Eastern Survey, October 25, 1950, p. 196.
36 FAR EASTERN SURVEY

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June 20, 1950 the Philippine Army Chief of Staff, ambassador in the Philippines and the latter continued
Major General Mariano Gastaneda, asserted that the to accredit only a minister to Indonesia.27 The reason
fall of Formosa to the Communists would greatly en- given in Manila for the failure to appoint a Philippine
danger the position of his country.21 President Quirino ambassador was financial difficulties and the decision
in a press conference the next day minimized the danger was in no way intended as a slight to Indonesia. A
of a Chinese Communist invasion of the Philippines, more fundamental divergence arose over the different
but expressed considerable apprehension about the dan- courses of action pursued by Indonesia and the Philip?
gers of ideological inroads.22 After the Communist in? pines toward the Communist invasion of Korea. Each
vasion of South Korea, on July 24, President Quirino state, of course, has a right to frame its own foreign
stated that if Formosa fell into the hands of the Com? policy, but the Filipinos regretted the "hands-off" at?
munists, the island could be used as a base from which titude of their Malayan neighbors in Indonesia. An
to launch attacks on the Philippines. He admitted, how? editorial in a prominent Manila newspaper on July 30
ever, that outside aggression against his country was made the point that the "term 'neutrality' as applied
still a possibility and not a probability.23 General Doug- by the Jakarta government is as out of date in this
las MacArthur's visit to Taiwan in late July was re? middle of the 20th century as the geographic con-
ceived with approval in the Philippines as a concrete ception of 'East' and 'West.' Which raises the ques?
indication of the determination of the United States to tion: Against whom, or what is Jakarta neutral?"28
carry out the Truman statement of June 27 relative to
the protection of Formosa from Communist invasion Indochina, Thailand, India
by the American Seventh Fleet during the Korean In Indochina the Philippines has been torn between
fighting. On August 7 President Quirino said that its loyalty to the principle of complete independence for
should Filipino troops be needed in Formosa or the
the peoples of southeast Asia and its general support
United States "we will go."24 Foreign Minister Romulo
for American foreign policy in the Far East. Malacanan
indicated on October 25 that if the Soviet Union had
does not sympathize with the Communist regime of
succeeded in Korea the next step would have been in
Ho Chi Minh but it does favor the fullest expression of
Formosa and the Philippines.25
genuine nationalism in Indochina. The Philippine gov?
ernment has not followed the United States in recogniz-
Relations with Indonesia
ing Bao Dai's Vietnam, or Cambodia or Laos, as as-
In southeast Asia the government at Malacanan has sociate states in the French Union. The intensification
taken a special interest in the independence of former of the fighting in Vietnam is certain to cause apprehen-
colonial dependencies. The Republic considers as one sion in the Philippines.
of its basic principles "the rights of dependent peoples With Thailand, until recently the only independent
to be free and independent" and looks forward to "the state in southeast Asia, the Philippines maintains friend-
inevitable demise of colonialism."26 The attitude of the
ly relations and has exchanged ministers. At a formal
Philippine government toward the Indonesian ques? ceremony in the Philippine Embassy in Washington
tion gave concrete evidence of its views on "imperial- on August 2, 1950 the ratifications of a Thai-Philippine
ism." General Romulo took an active part in the New
treaty of friendship were exchanged and the envoys of
Delhi conference on Indonesia in 1949 and the Philip? both countries stated that increased cooperation could
pine government supported the Indonesians in their be expected between Manila and Bangkok in all fields.29
struggle against the Dutch in the United Nations. The The decision of the government of Thailand to send
independence of Indonesia was hailed in the Philippines troops to Korea before similar action was taken in the
and diplomatic relations between the two countries were
Philippines caused some criticism in the Islands of the
soon established. In fact, some Filipinos have asserted
policy of Malacanan. President Quirino asserted on
that the Indonesians look to the Republic of the
July 24, however, that Thailand in contrast to the
Philippines as a leader in southeast Asia. Philippines was not bothered by Communists at home.30
In the summer of 1950 two differences, though not of
27 L. R. Mauricio, "Problems Involving Fil-Indonesian
major importance, arose between Manila and Jakarta.
Relations Demand Speedy Solution," Manila Chronicle, June
The Republic of Indonesia was represented by an
16, 1950.
21 Manila Chronicle, June 21, 1950. 28 Sunday Times (Manila), July 30, 1950. (Late in January
22 Manila Daily Bulletin, June 22, 1950. 1951, after this article was written, President Sukarno of
23 Ibid., July 25, 1950. Indonesia arrived in the Philippines for an official visit of
24 Ibid., August 8, 1950. one week. See New York Times, January 29, 1951.?Ed.)
25 New York Times, October 26, 1950. 29 Manila Daily Bulletin, August 3, 1950.
26 Jimenez, loc. cit., pp. 29. 6. 30 Ibid., July 25, 1950.
FEBRUARY 21, 1951 37

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At present the policies of Bangkok and Manila are American aid under the Military Assistance Program.
generally similar in world affairs. The Philippines has been officially described as within
Although the Philippine Republic has welcomed the the United States defense perimeter in the Far East.32
independence of the new states in the Indian sphere Although America does not favor intervention in the in-
of southern Asia?India, Pakistan, Burma, and Ceylon ternal politics of the Philippines, the United States is
?diplomatic missions have not yet been exchanged interested in the development of democracy and stability
with these new governments. Philippine relations with in the Islands. American Ambassador Myron M. Cowen
India have been good, despite some rivalry for leader? in a radio speech on May 26, 1949 asserted that the
ship in southeast Asia. Although they have many in? United States was "keenly aware of the important role
terests in common, their outlook in foreign affairs is the Philippines is today playing in the affairs of
different, for the Philippines is definitely tied to the Asia. . . . Our task then as friends and partners in
West while India prefers a more neutral role. the Pacific should be to work together for the ideals
and principles which are our common heritage."33
Relations with the US As the Philippine Republic views its foreign policy
In the cold war, relations between the Philippines since July 4, 1946, the leaders of the nation have no
and the United States assume a vital significance, espe? reason to regret their decisions in this field. The Repub?
cially to the Philippines. Even if world conditions were lic is a respected member of the international com?
normal, relations between Washington and Manila munity, has been loyal to the principles of the United
would be close. The United States and the Philippines Nations, has taken its stand against militant, aggressive
are united by historical, economic, and military ties. The Communism, has championed the cause of dependent
years of American sovereignty left a tangible impact peoples, has sought to develop a regional consciousness
upon the viewpoints of the Filipinos, especially with in southeast Asia, and has not allowed the impact of
regard to government, education, and sanitation. The newly-acquired independence to result in chauvinistic
granting of independence in 1946 strengthened the nationalism or the severance of close ties with the
ties between the peoples of America and the Philip? United States. The Philippines, moreover, has been
pines. During the Korean crisis many Filipinos rallied fortunate in the presence of a leader who has ac-
more to the United States than to Malacanan. quired stature not only in southeast Asia but also in
In the economic field the Philippine Trade Act of the world?Carlos P. Romulo. In the field of foreign
1946 created a special trade relationship for twenty- affairs the Philippines has well demonstrated its claim
eight years between the two countries and the "parity to leadership among the small states of the world.
clause" amendment to the Philippine constitution as
32 Dean Acheson, "Crisis in Asia?An Examination of
specified in the Trade Act is technically beneficial to U.S. Policy,'' Department of State Bulletin, January 12,
American investors. The Philippine Rehabilitation Act
1950, p. 116.
of 1946 has done much to restore the economy of the 33 Myron M. Gowen, "Philippines in the Affairs of
archipelago although the process is not yet complete. Nations," Quarterly Review, May 1950, p. 32.
The United States has poured into the Philippines in
one way or another about two billion dollars since V-J
PHILIPPINE TRADE NOTES
Day. Nevertheless, economic conditions in the Islands
have continued to deteriorate. Hence, at the request The Philippine trade deficit dropped from P350
of President Quirino, President Truman sent an eco? million for January-June 1949 to P96 million for
nomic mission to Manila in the summer of 1950. The the same period in 1950, according to ECAFE's
Bell Mission in its report to the President of the Trade Promotion News. This was largely the
United States on October 19, 1950 recommended that result of import and exchange controls and the
the American government extend a quarter of a bil? increased production of export crops. The 1950-51
lion dollars5 worth of aid to the Philippines in carefully sugar crop was estimated at 1,057,435 short tons,
supervised loans and grants over a five-year period, over 400,000 tons greater than that for 1949-50.
providing the government of the Islands carried out The recovery of the sugar industry may help
necessary economic, fiscal, and agricultural reforms.31 the Philippines to cover its full quota of duty-
In the military field the United States has a lease free exports to the United States in the next two
for 99 years on a number of army, navy, and air bases years. Copra and abaca, two other important
in the archipelago, an American Military Advisory exports, are considered war materials, so that the
Group functions in Manila, and the Islands receive prospect is for continuing demand and high

31 See Shirley Jenkins, "Philippine White Paper," Far prices for these crops.
Eastern Survey, January 10, 1951.

38 FAR EASTERN SURVEY

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