Evening star., 1950-06-04

ney TepOIteOI COntIOl 40 pEON~
inces Of the island.
The Huks were never active
until recently-outSide Luzon. but
now they have appeared in other
islands, particularly the Central
ViSayaS.
The character of the Hulk move-
ment should not be mistaken,
Although its front at one time
may have been agrarian reform
as it was with the Chinese Com
munists-it is openly and avowedlv
Communist. Even the name has
been changed to Peoples Liberia
ton Army" in conformity with
other Communist military forces
throughout Southeast Asia. Their
armed strength has been estimated
between 10000 and 10000 COM
pared to the Philippine constabu-
larry of 10000.
Hint Change of Leaders
The Communists have been led
by Luis Taruc. a Soviet-trained
Filipino. There is evidence. how
ever. that the leadership is passing
into other. stronger hands. per-
haps in preparation for more
aggressive action. The two strong
est Communist labor union leaders
in Manila-Capodocio and Valgos
recently left Manila for Hulk
territory. Together they will pro-
vide direction for the Hulk move
ment which Taruc-who is not
regarded too highly as q leader
has not been able to provide.
This strengthened leadership
appears to be necessary for full
use of military supplies which the
Huks are getting from the Chi
neSe Communists. whose conquest
Of all mainland China and whose
prospective invasion Of Formosa
put the Philippines directly In
line for the next aggressive
advance.
If the Red leadership Is thor.
oughly indoctrinated in commu-
nism. the rank and file of the
Hulk forces are equally ignorant
lof the precepts Of Marx and
Stain. They have been drawn
from the lowest economic level
with the same elemental appeals
which the Reds have used every
where-land, bread. peace.
! With the republic threatened
by a rising Communist peril and
with the administration torn by
corruption. the government has
been unable to deal effectively
with two other grim manifesto
tions Of internal disease-virtual
economic collapse and practical
bankruptcy.
Trade Reforms Made
The Philippines are rich. They
can produce many things. Sugar
is perhaps the most important.
but copra. hemp. tobacco and
rice are or could be big items OF
production.
Before World War II the is
lands had favorable trade ball
ance. 1t was especially favorable
with the United States, which
bought their sugar. copra and
hemp in great quantities. Today.
however. the balance is seriously
adverse to the islands and drastic
steps-such as recent limitations
on imports. especially luxury
items-have been taken TO cor.
rect this unbalance.
The Philippines. while selling
far less to the world than before
the war. have been buying a great
deal more. particularly luxury
items. which has brought hot
criticism on the Quirino admins
tration.
Sugar has recovered to only
about three quarters Of prewar
production. While copra Is equal
to prewar or above, tobacco pro-
duction is only about 10 per cent
Of prewar. while hemp has made
little If any recovery. The Philip
pines produces rice. yet actually
imports great quantities Of 1t.
What are the reasons for this
lag? In sugar 1t Is the extent Of
war damage and the fact that
great capital outlays had to be
made TO get sugar production
started again. In hemp. also.
japanese devastation was the
primary cause. After the war
growers cut their plants prema-
turely to take advantage Of abb
normally high prices. War vet
Grams, to whom the government
gave portions Of subdivided hemp
plantations. stripped their flelus
to reap quick returns. The re-
suit was crippled production at q
time when the British are exert
ing themselves In Borneo to cut
in on the hemp market. which
once was exclusively Filipino.
Imports Out of Balance
Philippine tobacco growers have
lost their Spanish market, which
used to take so or 10 per cent Of
their production. Spain is too
hard up for dollars to buy Philip
pine tobacco. Tobacco growers are
accused. however. Of lethargy In
seeking new markets.
With exportable production thus
drastically reduced. the Philip
pines. nevertheless. have been q
large postwar market for Amer
ican production. particularly lux
ury goods-automobiles, cigarettes.
hair oil. refrigerators. Philippine
exports have cofhe nowhere near
paying for these imports. Where
have the dollars come from7.
The dollars have come from