The Daily Alaska empire., 1936-01-14

south Africa and other colonial possessions of world powers. This system MT Elizalde believes would make the Philippines subject country, to speak, of whatever nation became the chief purchaser of her materials and agricultural products Indus trial nations, he suggested, have but one fixed aim in view-to purchase their materials at the lowest possible level, in order to increase their profits and at the time get into better con- petitive position with other manufacturing countries To remain strictly agricultural material producing country would be to invite disaster, or lowered living standard and for that reason, MT Elizade explained, his belief that the Philip pines could go farther a semi-agricultural and industrial country, producing much possible of her own agricultural needs and engaging in manufacturing for purely local needs.
 Being of an old Spanish line himself, though born and raised in the Philippines, MT. Elizalde pictured the Philippines likely to have smoother economic sailing along the lines of old Spain herself. That country produces nearly all of it's own agricultural products and at the same time, with judicous tariff system it manufactures the bulk of it's requirements of finished goods with the exception of it's heavy machinery needs and automobiles and trucks With imports and exports of agricultural products almost balancing each other, Spain has been able to boast of stable financial system, with a low cost of living high wages and a stable currency, with comparatively
 little of foreign debt, and it is to this sort of goal that MT Ezade would project the Philip pine economic policy
 And the keynote of such a middle-ground economic policy, MT. Ezalde considers continuance of the present preferential and reciprocal trade rea tionships with the United States extremely vital The deep friendships already existing between the United States and the Philippines should be tinued with economic advantage to both countries
 Commenting on the growing trade with Japan MT Elzade pointed out that the Philippines had been able to tide over the discrepancies of the unfavorable trade balance with Japan by drawing from the balances in favor of the islands with the United States But this sort of thing cannot last forever he declared and the day we lose favorable trade balance with the United States we shall have to settle unfavorable bal ance with Japan in some way And when that day comes the Philippines shall become a debtor nation to Japan and suffer all the onerous consequences that such situation would bring about Our debts would grow in few years to such point that we face absolute domination of our financial policies by that nation"
 There is strong likelihood that President Quezon will draft MT. Elizalde to head forthcoming econ omc mission to the United States. He has been serving under Governor General Murphy as head of the National Development Company a Govern ment institution organized for the purpose of assist
 
 sources of the country. MT. Elizalde, with three brothers, controls the industrial and shipping firm of Elizalde and Company All the brothers are expert horsemen, and together constitute a hard riding polo team who have ridden in various coun- tries of the Orient as well as the United States Speaking of development of natural resources we told that the island of Mindanao, south of the Luzon group and second largest island of the Philip pines, constitutes the richest undeveoped territory in the world Rich in minerals, with an excellent climate, it is largely plateau extremely fertile and rich in possibilities. The greatest challenge to the people of the Philippines said eGovernor Hayden of the Philippines recently, lis the devel- opment of the island of Mindanao." There is a small amount of mining there now and few pine apple plantations have been opened by the Del Monte Packing Company of California, but the great part of the islands territory is untouched. At Davao, in southern Mindanao, the most con- siderable Japanese settlement in the Philippines is located. It has already assumed the importance of problem Japanese fishermen come in and vio- late the agreements of fishing conventions; Japan loggers raid the forests of the southern islands in violation of agreements made; Japanese land ownership is carried in violation of prohibitory regulatons-all these told to us and find pub lication in the daily press of the country. That there is a very definite Japanese problem already in existence in the Philippines seems to be the undercurrent of opinion among leaders here.
 In recent editorial written by the distinguished American journalist, Clark Howell, editor of the Atlanta Constitution, of our party, for his newspaper from here, concludes: "Subconsciousy the Japanese equation is thrust into the picture from every angle AS go out to degrees will they enter in proportion? The advantage of their proximity is apparent
 "Conceding that independence is established, and that Japan and the United States occupy the same relative position with the Philippines, we cannot compete equal terms in trade against vire people who have the advantage of both propinquity and the common sympathy of Oriental instinct.
 Japan has everything to gain and nothing to lose by Philippine independence Her brilliant Am bassador to Washington, MT. Sato, has time and again nhlic addresses said that Iaraan o1alv