Evening star., 1937-02-28
UEzONT0D|SCUSS
EXPECTATION TAX
sVLtts
Mission in Washington Is In
.'fren1 w..
spired by More Than
Trade.
BY JAMES G. WINGO.

BY JAMES G. WINGO.
There are many more reasons than
the setting of a date for a United
States-Philippine trade and economic
conference that bring President Man.
uel ouezon to Washington at TINS
time.
His avowed main idea is to have
reciprocal agreement which WILL place
certain Philippine products-sugar
and cocoanut oil specially-inside the
United States tariff wall when inde-
pendence is realized. However, when
he left Manila it was generally under
stood that trade agreement was only
one of the matters he would take up
in Washington In fact, he said. L
am ready to discuss anything aftectlng
the Philippines"
The Filipinos are not satisfied with
the export tax provision of the Phil
ippine independence act. Quintin
Paredes, first resident commissioner Of
The Philippine Commonwealth. has
been complaining about it for more
than year.
Fear Cuba in 1941.
On November IS. 1910, the Philip
pine Commonwealth will be required
TO levy an export tax on all Philippine
products shipped to the United States
The tax would begin at 5 per cent,
with an increase of per cent every
year until in 1916 the Philippine prod
ucts will be subjected to full tariff
rates. The Philippine sugar producers
believe they will be at the mercy of
Cuba beginning in l941, when 10 per
cent of the United States duty shall
have been imposed on their product.
Only Congress is empowered to alter
the Philippine independence act.
President Quezon, it is believed, VIII
beg Congress to eliminate the export
tax provision.
His main talking point on this score
will be President RooSevelt's statement
in 1884 that he was confident that
where imperfections and inequalities
exist in the independence act, correc-
tions would be made after proper
hearing.
Another work ahead of President
Ouezon is to seek the payment OF
s23,862. .750.78 to the Philippine Gov
ernment by the United States as its
share of the gold devaluation profit.
This amount is equal to the increase
in value of the gold equivalent of the
balances maintained on January 81,
1884, in continental United States
banks of the Philippine government
for its gold standard fund. less the
interest received by it on such bal
ances.
Congress authorized the Secretary
of the Treasury to pay the amount TO
the Philippines, but failed to make
the necessc - appropriation. Senator
Adams OF dorado last month re-
introduced MS bill repeating the
authorization enacted by the Seventy
third Congress.
Tax on COconut Oil.
Another amount which President
Ouezon would like 10 see paid to the
commonwealth government is the
accumulated Philippine coconut oil
excise tax collections, totaling approx
mately $4,000, ,000 The Treasury
would not pay this amount until the
United States Supreme Court decides
upon the constitutionality OF its pay
ment.
Other matters which President
Ouezon was understood to take up IN
Washington are a proposal for Phil
ippine autonomy in currency involving
the eventual establishment OF an in
dependent banking and credit system
for the islands. embodied in Phil
ippine central bank. and the admission
of Filipino military and consular at:
.taches in United States Embassies and
diplomatic Offices as step to their
training for future consular and dlplo-
matte work.
Commissioner ParedeS has recon-
,Ynended that an attempt be made to
adjust the following problems: Tar
if autonomy for the Philippines. def
.nition of the authorities OF the war
and State Departments on Philippine
affairs, the immigration and treat
ment of Filipinos in the United
States. definition of the duties OF the
high commissioner to the Philip
pines and the possibility Of ding
Filipinos to the United States Mill
tary and Naval Academies.
Defense Question Up.
Owing to Quezon's statement that
Gen. Douglas Macarthur accompa-
MED him to the United States in his
official capacity as military adviser
to the President of the Philippines
observers believe that the program
of Philippine national defense and
the question of the establishment OF
naval bases may come up in the con-
ferences with Federal officials.
The Philippine independence act
provides for the complete evacuation
of the United States military forces
IN the Philippines by July 4, 1916,
but the question of naval bases is left
for determination not later than two
years after that date.
Initiative for the movc:nent to neu-
tralize the Philippines depends upon
the President of the United States,
who may negotiate with foreign
powers with a view to the conclusion
of a treaty for the perpetual neutrali-
zation of the Philippines. If and when
their independence shall have been
achieved
President Quezon does not. believe
that any naturalization treaty can
guarantee Philippine independence
However, he does not have any OBJ
lection to it.
President QueZon himself has stated
In a press conference that "the Philip
pines will have independence not later
than July 4, 1916, at any cost"