Evening star., 1935-11-10
Continued From First Page.)

TO the United States, the tax rising
to 10 per cent during the seventh
year. to IS per cent during the
eighth year, to 20 per cent during
the ninth year and to rs per cent
during the tenth year. These taxes
will create sinking fund for
liquidation of the Philippine bond
ed debt, amounting to abort $751;
100000 and virtually guaranteed
by the United States, with the idea
of starting the new Philippine re-
public debt-free and certainly free
of further financial entanglements
with the United States.
3. At the end of the 10-year
period full tariff rates shall apply
on Philippine products. just as they
apply to products OF other ma
tionS.
In addition to guaranteeing liquida-
ton of the Philippine bonded debt
the export tax on Philippine products
is proposed to provide the method
for gradual adjustment to the full
burdens of tariff later on.
Tydings Warned of Cost.
Senator Tydings of Maryland, chair
man of the Senate Committee on
Territories and Insular Affairs. ad-
dressed the constitutional convention
in Manila last December and solemnly
warned the Filipinos of the cost they
were obligating themselves to pay for
independence. Loss of the free mar
kets of the United States. where the
Philippines sell some go per cent of
their total agricultural production
and about 80 per cent of exports, will
mean drastic reduction and possibly
fatal destruction of this trade. For
the past Is years the Filipinos have
enjoyed free access to the greatest
market in the world, selling more to
the United States than the United
States sells to them. creating a IA
vorable trade balance of around
$30,000,000 year that has given
them the highest standard of living
in the East. enabling them to enjoy
relative prosperity and cultural and
economic development that would
never have been possible otherwise.
With the assumption of independence
no such advantages will continue. The
Philippines will be placed on an even
footing with other nations competing
for survival in the crowded markets
of the world. Their duty-free sale
of sugar, copra and cordage fiber to
the United States now maintains their
standard of living and their prosperity.
Eliminate the free market and the
prop to their economic well-being is
knocked out. Wages would be reduced,
standards of living lowered, profits cut
by an amount that would challenge
the ability of any government. espe-
cially a new one just learning to walk
alone, to survive.
Dependent Upon the U. S.
President Quezon, an able leader
and an intelligent man. realizes with
other Filipino leaders the full Eco
nomi implications of the end Of free
trade. 1T appears clearly" he says,
''that we are dependent upon the
United States for the continued pros
perity of our people and our ability
to meet the burdens of progressive
government"
In that case, how do the Filipinos
expect to secure the complete political
independence they desire and at the
same time remain economically de-
pendent-for longer time than Con-
gres~ has decreed-on the United
States9
That is apparently their aim. Pres
ident Quezon outlines this aim as
follows: "D The elimination of the
provisions of the Tydings-
law, which impose progressive tax
on our exports to the United States
after the fifth year of the establish
ment of the Commonwealth: (2) the
raise to higher figure of the limita-
tions dmport quotas) imposed upon
our right to export, free of duty, GER
tain articles and products; (3 to
make this arrangement in our trade
relations with America permanent, at
least for number of years after
independence has been granted"
Senator McKellar's View.
tor McKellar, one of the Sem
ate delegation which visited the
islands last December and former
disciple Of Bryan and Philippine in
dependence. who has changed his
mind, regards this program as a
declaration of policy to have ones
cake and eat 1t, too: to grasp what
benefits there may be in full political
autonomy and secure them by sub
stantial economic dependence upon
the free markets of the United States.
The Filipino leaders deny any such
inconsistency, arguing. in the first
place, that free trade was imposed
upon the Philippines in 1909 by Con-
gress over the protest by formal reso-
l:,tion Of the Philippine Assembly.
They contend that the effect of free
trade-not discounting its beneficial
results in higher standards of living
and encouragement of Philippine de-
velopment-has been to make the
Philippines dependent on the free
markets of the United States. Having
been made dependent. ending free
trade without substantial modifica-
tions will not be in keeping with the
highly altruistic sentiments which
have so largely governed American
policy toward the Philippines in the
past. They claim an inconsistent
policy by the United States in the
fact that while the Philippines are
.pposed to prepare themselves for
the ending Of free trade. their ability
so to prepare themselves by separate
trade agreements with other nations is
blocked by the stipulation in the
Tydings-McDufile act that during the
10 years of the Commonwealth the
conduct of its foreign relations re-
mains with the President of the United
States.
Trade Two-Way Proposition.
And trade, of course. Is a two-way
proposition. While the Philippines
have sold more to the United States
than they have bought. their sales
have enabled them to buy enough
from the United States to become its
af~tkI d..