Evening star., 1945-04-01
The Philippines
By Jackson S. Elliott

pine Independence Act. July 4, 1916, was
set as the date on which the island
Commonwealth would become . SOW
ereign nation. @
The act was passed in 1884. Today
former adviser to the Philippines
High Commissioner describes it as
placing bland reliance on an un-
changing world"
What was intended to be the ordinary
operation Of the act has been set back
perhaps as much as five years by the
Japanese invasion.
Nearly everything remains undone.
There must be speedy action in fields
of diplomacy, industry, finance and
politics If independence is to go into
effect on schedule.
Paul v. McNutt, former United States
High Commissioner, who is considered
possibility for the post again, says
that If the Commonwealth leaders
persist in harping on the independence
question:" the islands are headed for
economic trouble.
Election Due This Fall.
The act calls for treaty, to be ap-
proved by both the United States Con-
gress and the Philippine Legislature.
The next general election in the islands,
when a legislature could be chosen, is
due November s, l945. Whether the
Japanese will have been cleared out
sufficiently to hold representative elec-
ton then is not now known. The
President of the United States, however,
probably could set another date.
(The President, incidentally, can set
an earlier independence date If he sees
fit)
The act calls for a conference Of
representatives of the Philippines and
the United States "for the purpose Of
formulating recommendation as to
future trade relations ." The act
provides for it to be held two years
prior to independence day (only IS
months are left now but specifies that
the provision for the conference In
no way modifies the date of inde-
pendence.
Debts Amount to $S0,00o.0 900.
The property rights OF the United
States, those of United States citizens
and corporations and those of the Phil
ippines must be adjusted and settled"
under the act, and debts and liabilities
Of the islands also must be settled.
If full payment Of debts were to be
made at once it would amount to about
ssO00O,0OO. The Philippine government
is believed to have about $40, ,000, 600 now
available for this purpose.
And, finally, the President OF the
United States must issue proclama-
ton of Philippine independence.
Should the Philippines become inde-
pendent next year, the young nation
would Immediately face economic prob
lens of such size and complexity as
rarely have faced more mature nations.
On the day freedom becomes COM
plete, Philippine goods sent to the United
charges for the first time. Experts in
Washington predict that If full charges
are levied against Philippine sugar not
pound will be imported into the United
States. This would throw into chaos
the industry which supplied one-eighth
of the Philippine national income.
With freedom the United States also
may cease crediting the island govern
ment with proceeds of the present s.
cents-a- pound tax charged United
States professors OF Philippine coconut
oil. This tax in the past has averaged
SIS ,000,000 year and accounts for
about one-fourth of the income of the
Commonwealth government.
Also, the 5-cents-a-pound tariff will be
restored on Philippine oil. This tarin
had been cut to cents, which was re-
turned to the Philippines. The Philip
pines will have to compete with the
other prime soap oil, from the African
palm kernel, on which the tariff is only
cents.
Under the terms of the Independence
Act, Joint Rehabilitation Commission
has been established. It will meet soon
to discuss future trade relationships.
It Is expected that the Philippine gov
ernment will ask for 20-year period
of free trade.
Even such period of free trade would
not fully protect the islands vital sugar
industry. The reason is that United
States Cuban treaty provides that each
nation will allow the goods Of the other
to come In at tariff 20 per cent lower
than is charged the goods of any other
nation.
Would Face Cuban Competition.
A treaty giving the Philippines per-
mission to send in sugar duty-free
would automatically remove all duty
from Cuban sugar. Since transporta-
ton costs from Cuba are much less,
Cuba would retain a handsome advan-
tage. sa
The independence Act provided for q
period of fve years, ending in 1916, in
which Philippine exports would begin
bearing q gradually increasing portion
of normal United States tariff charges.
If independence should come on time,
the Philippines would be hit Immediate
ly by the full force of United States
tariffs unless the act is modified.
Financial authorities also believe that
freedom may require the Philippine
government to devalue the peso, which
at present Is backed in American cur
rency at one dollar for two pesos. These
experts think that the Philippines
might have to bring their currency,
prices and wages in line with those Of
their Oriental trade competitors.
Distributed BY the Associated Press.ls
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