Evening star. [volume] (Washington, D.C.) 1854-1972, 1945-02-11
Philippine independence
Involves Complex Issues
End of Free Trade Status When Islands Set Up
Own Government to Present Difficult
Economic Problems for Islands
By Joseph II. Baird

II. Baird
American forces for some months. How
ever, the opinion in Filipino circles here
Is that an attempt will be made to
reassemble the Congress which existed
at the time of the invasion as a first
step toward establishing the Filipino
republic.
Relief Problems Press.
Relief problems are pressing. For
three years the Japanese have stripped
the islands of food, shipping it to Japan
and leaving only enough to keep the
Filipinos alive. Disease and malnutri-
ton are widespread. The population
Is in rags.
Greatest immediate need In the
islands, according to Filipino sources
here, is simple cotton clothing, canned
milk for children, canned meat and
canned fish. Normally rice and corn
are the staple diet of the Filipino
peasant and worker. The rice
harvesting season, which begins in Oc-
tober, is just ending, and the gravity
Of the islands food problem will depend
largely on whether the Japanese have
been successful in shipping out this
years rice crop. Due to the intensity
of the American naval blockade around
the Philippines for the last three months
there is hope that large part of the
crop still remains.
Moreover, during the Japanese occu-
patton, the Filipino farmers have lost
thousands of carabao, the water buff
falo which do their blowing and which
are vital to the islands agriculture.
Some were killed by the enemy, others
by peasants who were facing starvation.
So another pressing need is for either
work animals or small tractors.
The late President Quezon in No
vember, 1943, appointed Filipino COM
mission headed by Col. Manuel Nieoto,
secretary of agriculture and commerce,
to study the relief needs of the Philip
pines. Their studies were submitted to
the War Department and presumably
now are in Gen. MacArthur's hands.
Initial relief will be undertaken by the
American Army. AS to the future, the
Philippine Commonwealth is a member
of the United Nations Relief and Re-
expect help from that body, although
no formal request for aid has been filed
thus far.
U. s. Main Customer.
These are the immediate problems.
But the long-range economic problems
under existing American law-are
worrying the Filipinos equally as much
as they contemplte the establishment
of an independent nation which would
compete on equal terms with other
countries for the American market. In
the economic world the islands have
enjoyed sheltered life because of their
free trade privileges here, and they
have built up no other customers of
importance.
Reliance upon the export Of few
tropical products to America has pre-
vented the Investigation Of Philip
pine agriculture and development of the
| industry necessary for economic indie
pendence. From 1890 until the outbreak
| per cent of all Philippine exports moved
in the American free trade market,
while this country supplied the islands
with from So to 81 per cent Of their
| canned foods and manufactured goods.
For example, the islands for years be-
| fore the war were the leading foreign
market for American condensed milk.
| In short, economic ties based on free
| trade are firm and cannot be severed
| overnight without disaster to the islands.
Under the Tydings-McDufie act Of
March "a, 1884, the Philippines were to
| cushion the bump of their transition
| from free trade to tariff market by
gradual degrees. For five years-until
November Is, 1940-the islands were
to have preliminary free-trade period
with quotas imposed on three main ex-
| ports-sugar, cordage and coconut oil
For the next five years the islands were
| to be charged an ad valorem duty Of
per cent in 1941 and an additional 5
per cent each year until it reached q
total of Is per cent in 1916. The ia,
was to be inpounded and used for the
retirepent OF the Philippine public debt
However, due to war clouds Congress
in 1941 suspended operation of the act
with regard to duties for one year.
War Altered Situation.
As Japans troops swarmed over the
Philippines in December, 1941, 1t be-
came evident that the entire plan of
economic readjustment would 60 by
the boards. But the original Tydings-
McDufhe act remained on the books
until last summer, when Congress
passed q joint resolution giving-as
noted before-the President power to
proclaim independence before July 4,
1886, and also setting up a Philip
pine rehabilitation commission to study
economic problems arising out of the
war.
This group consists Of 10 members
nine Americans and nine Filipinos. SEN
Iator Tydings, Democrat, of Maryland
is chairman of the whole commission
and Jaime Hernandez, Filipino econo-
mist, head of the island group. For
some months this body has been study
ing both short and long range economic
problems and is to present q report to
the President and Congresses Of both
the United States and the Philippines
Its findings probably will be the basis
Of the revisions that seem Inevitable in
the original economic provisions Of the
Tydings- McDufie act.
Filipino spokesman here contend-and