United States Army Forces in the Far East United States Army Forces in the Far East ( USAFFE ) was a military formation of the United States Army active from 1941 to 1946 . The new command ' s headquarters was created on July 26 , 1941 , at No . 1 , Calle Victoria , Manila , Luzon , the Philippines , with General Douglas MacArthur as commander . The Chief of Staff was Brigadier General Richard K . Sutherland and the Deputy Chief of Staff was Lieutenant Colonel Richard J . Marshall . The core of this command ( including MacArthur , Marshall , and Sutherland ) was drawn from the Office of the Military Advisor to the Commonwealth Government . Creation of this command led to the subordination of the headquarters of the Philippine Department of the U . S . Army , as a service command , since planning and tactical control were now under USAFFE control . MacArthur explains , " It became an administrative echelon . It was analogous to a corps area " . MacArthur recommended that Philippine Department commander Major General Grunert be reassigned , as his services were no longer needed . On October 23 , Grunert returned to the United States and MacArthur was temporarily appointed as the Philippine Department ' s commander . History . In January 1941 , the intelligence officer ( G - 2 ) of the Philippine Department had recommended , to his superior in Washington , D . C . , that an American high command in the Far East be created , with the commander of the Philippine Department as the designated commander of said command . It does not appear this idea was seriously considered until Douglas MacArthur suggested , to the Army Chief of Staff , that such a command be created with MacArthur as the Far Eastern Commander . On June 6 , Acting Chief of the War Plans Division Brigadier General Leonard T . Gerow noted that he saw no need for such a command , as US Forces in the Far East were concentrated in the Philippines . As such , Gerow argued that should a " crisis " occur , then MacArthur should become the commander of , not some new command , but rather , of the Philippine Department itself . On June 20 , Army Chief of Staff George C . Marshall informed MacArthur , " Both the Secretary of War ( Stimson ) and I are much concerned about the situation in the Far East . Your qualifications and experience make you the logical selection for the Army Commander in the Far East should the situation approach a crisis . The Secretary has delayed recommending your appointment as he does not feel the time has arrived for such action . At the proper time , he will recommend to the President that you be so appointed . " On July 17 , Gerow made the following recommendations : On July 25 , Secretary of War Henry L . Stimson requested that President Roosevelt issue orders calling the military forces of the Commonwealth into active service for the United States . Stimson explains , " All practical steps should be taken to increase the defensive strength of the Philippine Islands " . The following day , Roosevelt froze all Japanese assets within the United States and issued the orders to absorb the forces of the Philippine Army . That same day , the War Department created the USAFFE command , with jurisdiction over the Philippine Department and the military forces of Commonwealth of the Philippines ( seemingly principally the Philippine Army , with two regular and ten reserve division s ) . At the same time , MacArthur was recalled to active duty as the USAFFE commander , from his positions as military advisor to the Philippine government and Field Marshal of the Philippine Army . The short - lived American - British - Dutch - Australian Command ( ABDACOM ) was formed on January 1 , 1942 , to control all Allied forces in South East Asia and the South West Pacific . ABDACOM nominally controlled USAFFE forces , although the latter was effectively an independent force . In March , due to the worsening Allied position in Asia and the Pacific , Roosevelt ordered MacArthur to relocate his command to Australia . MacArthur ' s famous speech regarding the Philippines , in which he said , " I came out of Bataan and I shall return " was made at Terowie , South Australia on March 20 . General Jonathan Wainwright officially assumed control of the remaining forces in the Philippines , now known as United States Forces in the Philippines ( USFIP ) on 23 March . On April 18 , 1942 , ABDACOM was replaced by General Headquarters ( GHQ ) , Southwest Pacific Area ( SWPA ) in Melbourne , Australia , including USFIP . MacArthur was appointed Supreme Commander , SWPA . USFIP , with the exception of some ad hoc guerilla and resistance outfits , had surrendered to Japanese by May 8 . MacArthur formally reconstituted USAFFE in Australia in February 1943 , to assume responsibility for all administrative staff duties pertaining to U . S . Army units in the SWPA , as well as control of guerrilla forces in the Philippines . On October 20 , 1944 , the recapture of the Philippines commenced when Allied forces landed in Leyte Gulf . The campaign was declared completed on July 4 , 1945 . USAFFE was formally dissolved in the lead - up to Philippine independence on July 4 , 1946 . Order of battle . July 31 , 1941 . Total Strength — 22 , 532 ( 1 , 434 officers — 21 , 098 enlisted , including 11 , 937 Philippine Scouts ) November 30 , 1941 . Total Strength : 31 , 095 ( 2 , 504 officers and 28 , 591 enlisted , including 11 , 957 Philippine Scouts )