Evening star., 1949-09-25

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end of this boom within the next
are sufficient to do the job. Inn
port restrictions on some classes
Of luxury goods were started only
last January after being recon-
mended in 1947 by a Joint Philip
pine-American Finance Commis-
sion.
During the first half of 1949.
Philippine imports amounted to
572. 100000 pesos. a decrease Of
6 per cent over the same period
last year. Exports were valued at
283 loo, 900 pesos. off 10 per cent.
The foreign trade deficit for the
first half of this year was $780,
100000 pesos.
This adverse trade balance was
more than Offset by United States
Government outlays in the is
lands amounting to 100000, 900
pesos for the six months. BY 1851,
it is estimated that American ex-
penditures in the islands will be
only about l7O,O00.000 pesos for
the entire year. Then the Philip
pines will feel the pinch.
Since the war, the United States
has poured close to 81 100000 into
the Philippine economy. The
Philippine peso is stabilized at
the rate of two for one American
dollar, so that this approximates
$500, 100000 pesos.
Dollar Reserves Drop
Despite the flow Of American
dollars, Philippine dollar reserves
are reported to have dropped from
800, 900 pesos to 100000 pesos last
year because of an adverse trade
balance of about 400, 1000. 900 pesos.
Major direct American aid prop
ping up the Philippine economy
so far has come under the Philip
pine Rehabilitation Act Of 1916.
This Act created a Philippine War
Damage Commission authorized to
pay out $400, 900, 900 in war-dam-
age claims to Philippine and
American claimants in the islands.
provided for granting the Philip
pine government of $100,000.000
worth of surplus property. and
authorized the spending of $780,
100000 by various American
agencies in rehabilitation and
training projects in the Philip
pines. The Veterans Administra-
tion is paying out additional mil
lions of dollars in benefits to war
veterans in the Philippines. Dwin-
ding expenditures by the Army.
Navy and Air Force in the islands
make up the remainder of the
American dollar outlay there.
Most Of the programs carried
out under the Philippine Rehabi-
litation Act end in 1851 when war
damage claim payments are
scheduled to be completed. Pos
sible additional American-aid
measures have not gone beyond the
study stage, officials say, except
for isolated actions such as re-
cent Export Import Bank loan.
Discussions looking toward CO.
operative action to attempt to
stabilize the Philippine economy
so that 1t can stand on its own
feet were begun during President
Quirino's recent visit here. but
little progress has been made
known 50 far.
In line with policy here to
encourage development Of Philip
pine industries to help make the
country self sufficient, the Ex-
port Import Bank announced on
September 8 a $250,000 credit to
the Dahican Lumber Co. This will
assist, the bank said, in financing
the development and production Of
Philippine mahogany and other
hardwood lumber. Total cost Of
the development is estimated at
$3.50, 900, with approximately
$4o0, 900 Of this provided by. Ameri-
can investors interested In the
sale Of Philippine mahogany in
the United States. A Manila bank
also has extended some credit to
the company.
Copra Trade Of
Modern American sawmill equip
ment Is being installed by the
company, which hopes to make
the fine-grain "Dahican" mahog-
any, exported to the United States
by another company before the
war, again available to the Amer
ican market by late this year.
During the first half Of 1949
a small nail plant, q wood We
neering plant and q modest-scale
glass bottle factory were opened
in the Philippines as part OF the
industrial development program.
Increased production Of cement,
vegetable lards and laundry soap
also was reported in the islands.
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