Evening star., 1938-04-06
FILIPINO ECONOMIC
DELAYED
Political independence Also
May Be Affected, Informed
Observers Believe.
BY the Associated Press,

iPs INC loS'NldtcO
A stronger United States policy for
the Pacific appeared today to be an
inevitable outgrowth of an agreement
between President Roosevelt and
Philippine President Quezon to post
pone Philippine economic independ-
ence until 1860.
The agreement leaves unchanged
the date for Philippine political inde-
pendence-July 4, l946-but informed
observers believed that date, too
eventually might be affected.
At any rate, they said, for another
% years the United States will have a
direct interest in the Philippines and
responsibility for them.
Consequently. they pointed out, the
United States policy in the Pacific
will be drawn toward the Far East, in
stead of stopping short just beyond
Hawaii.
The United States and Philippine
Presidents, said State Department
announcement. agreed on a gradual
reduction of trade preferences The
program was based on the report of a
Joint preparatory committee which
has studied the problem for over a
year under the direction Of John v.
MacMurray, Ambassador to Turkey.
Beginning in 194l an export tax Of
5 per cent of the existing American
duties on products such asst the Philip
pines produce would be imposed on
Philippine exports to the United States.
This would be increased by another
per cent each year until the date of
independence, in 1916, when 1t would
be 25 per cent. During this time the
tax would be collected and retained by
the Philippine government
After the Philippines became po-
litically independent the United States
would impose the tax on goods arriving
here, beginning at 25 per cent of exist
ing duties and increasing by 5 per cent
each year to 100 per cent at the end
of 1860.
At that point the preferences would
be wiped out and the Philippines would
be paying the same duty paid by any
other exporter to the United States.
This import tax would be retained by
the United States.
The proposal is not expected to be
ready in detail for the present session
Of Congress, but will be submitted to
the 1889 session.
Should Help Growth.
Persons close to the State Depart
ment said the agreement should help
the economic growth of the Philip
pines. For the first time since the
United States acquired the islands 40
years ago. they said. business men
there win know for more than couple
OF years ahead what the trade rela-
tions between the islands and the
United States will be.
Paul v. McNutt, high commissioner
to the Philippines, has suggested the
United States abandon her idea of
giving the Philippines their political
independence In that case the plan
for postponement of economic inde-
pendence, agreed to by Mr.. Roosevelt
and Mr. Quezon, would be abandoned
as we'll.
Meets Friendly Reception.
The Roosevelt-Quezon proposal met
friendly reception from two Senators
familiar with insular affairs.
Senator Tydings, Democrat, of
Maryland, chairman of the Senate
Territories and Insular Affairs Com
mittee, and Senator King, Democrat,
Of Utah. member of the committee,
said they were studying the agreement.
1T might be possible" Senator
Tydings said, although he qualified
his comment subject to more extended
study. Senator Tydings is co-author
of the independent act.
Senator King, who opposed the
1ydings bill and had sponsored nu-
merous other bills to provide Philip
pine independence, said the islands
were entitled to some preferential
treatment.
I'VE have made them trade with us
and they have no foreign markets."
Senator King said.
The Utah Senator said numerous
letters he had received recently had
stressed three different schools Of
thought on independence:
Some want it right now; others
think the present act providing inde-
pendence In 1946 should operate; still
others favor granting the Philippines
autonomy similar to that now granted
Canada hv croof prito;y,,,