EVENT NO. 1 - MANILA, PHILIPPINES

SATURDAY, JULY 26, 1969

12:00 Depart for Manila:
Flying Time - 3 hours 35 minutes
a minus 3 hour time change.

12:35 p.m. **ARRIVE MANILA**

The President and Mrs. Nixon descend the front ramp
followed, in order of precedence by:

Secretary Rogers

Mrs. Rogers

Dr. Kissinger

Mrs. Mosbacher

Mr. Ronald Ziegler

Colonel Hughes

Asst. Sec. Green

At the foot of the ramp, the President and Mrs. Nixon
are greeted by Charge d'Affaires James Wilson,
Mrs. Wilson, Ambassador Mosbacher and Ambassador
amd Mrs. Ernesto Lagdameo. Charge Wilson introduces
the President and Mrs. Nixon to President and Mrs. Marcos.
The latter introduces President and Mrs. Nixon to
Philippine dignitaries:

Vice President and Mrs. Lopez

Senate President Gil Puyat and Mrs. Puyat

Speaker Jose Laurel, Jr. and Mrs. Laurel

Chief Justice and Mrs. Roberto Concepcion

Secretary of Foreign Affairs, Carlos P. Romulo

and widowed daughter-in-law, Mrs. Mariles Romulo

Executive Secretary Rafael Salas and Mrs. Salas

President Nixon receives a Sampaguita Lei from a
young Filipino child. (Sampaguita Lei is the
Philippine national flower.) Mrs. Nixon will receive
an arm bouquet. (These will possibly be presented
by President Marcos' children.)

Manila Event 1-1

EVENT NO. 1 - CONTINUED

SATURDAY, JULY 26, 1969

STAFF INSTRUCTIONS

The rest of the passengers deplane
through the rear door and proceed
to the bottom of the ramp where
they are to remain while honors
and anthems are played. At the
direction of John Thomas, they
then proceed around the back of the
plane over to the area adjacent
to the press corps where they can
watch the remainder of the welcoming
ceremony. Immediately after the
welcoming ceremony, all staff
should move immediately behind
the press area to their assigned
vehicles in the motorcade.

12:40 p.m. President Nixon accompanies President Marcos to the Salute Base. The President is on President Marcos' right as he proceeds approximately 130 feet down the carpet to the Salute Base. Both Presidents then face the colors which are located approximately 120 feet to their left. Colonel Hughes follows President Nixon as ADC.

Mrs. Nixon and Mrs. Marcos proceed down the red
carpet behind the two Presidents with Mrs. Nixon
on Mrs. Marcos' right. The two First Ladies stop at
designated point where another red carpet is located
approximately 30 feet from the Salute Base. They face
left toward the colors.

While President Nixon and President Marcos are
proceeding through the greeting line, Secretary of
State Rogers and Mrs. Rogers, Mrs. Mosbacher and
Dr. Kissinger plus other members of the official

Manila Event 1-2

EVENT NO. 1 - CONTINUED

SATURDAY, JULY 26, 1969

party deplane and are greeted by Charge and
Mrs. Wilson. At this point, Ambassador Mosbacher
joins the group. Charge Wilson introduces the
group to Vice President and Mrs. Lopez and Secretary
Romulo and Mrs. Mariles Romulo (Secretary Romulo's
widowed daughter-in-law). Secretary Romulo intro-
duces Secretary and Mrs. Rogers to the remaining
dignitaries. This group remains on the carpet near
the base of the ramp and faces the colors. The
male members of the group receive leis and the
females arm bouquets.

12:45 p.m. The American and then the Philippine National Anthems are played by a Philippine Military Band and a 21-gun salute is fired simultaneously.

The Commander of the Honor Guard, Col. Millare,
reports to the President that the Honor Guard is
present in his honor.

The President and President Marcos review the Honor
Guard. When passing the colors, the President
honors the colors as he passes.

12:50 p.m. When President Nixon and President Marcos have reached the Salute Base, they face the colors. (President Nixon is on President Marcos' right). Ruffles and flourishes are sounded again. The Honor Guard Commander again reports to the President. President Nixon thanks Col. Millare by shaking hands with him.

The two Presidents face to their right and proceed to
the area where the Diplomatic Corps is standing and
President Nixon greets and shakes hands with the Dean
of the Diplomatic Corps and proceeds past the remainder
of the Diplomatic Corps.

Manila Event 1-3

EVENT NO. 1 - CONTINUED

SATURDAY, JULY 26, 1969

While President Nixon is walking towards the Diplomatic
Corps, the two First Ladies proceed to their right to
the speakers' stand. Members of the official party
follow and proceed directly to the base of the speakers'
stand.

1:00 p.m. After greeting the Diplomatic Corps, President Nixon and President Marcos proceed to the speakers' stand, President Nixon going ahead of President Marcos. The two First Ladies will be on the speakers' stand and chairs will be available.

At the microphones on the speakers' stand, President
Marcos welcomes President Nixon and Mrs. Nixon. At
the completion of the welcome, President Nixon replies.

1:15 p.m. At the conclusion of these remarks, President Nixon and President Marcos and the two First Ladies leave the speakers' stand and proceed directly toward the colors and the Honor Guard. Both Presidents render honors to the colors as they pass. The two Presidents and First Ladies proceed to their right and greet the Philippine general public and the American community.

STAFF INSTRUCTIONS:

At this time, all Staff members
are to be in their assigned vehicles.
Staff members going directly to
the hotel should board the "STAFF
Intercontinental Hotel" bus.

1:25 p.m. After greeting the general public and the American community, President Nixon, President Marcos, Mrs. Nixon and Mrs. Marcos turn to their right and proceed to the speakers' stand area where the official cars for the motorcade are located.

President Marcos enters the left side of the U.S.
Presidential car, President Nixon enters to the right.

Manila Event 1-4

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EVENT NO. 2 - MANILA ARRIVAL MOTORCADE

SATURDAY, JULY 26, 1969

<table><tr><td>1. Pilot Car</td><td>2 PSA Agents<br/>2 USSS Agents</td><td>300-500 yards ahead</td></tr><tr><td>2. Motorcycle<br/>Spearhead</td><td>5 PSA Pers.</td><td>Leads Motorcade</td></tr><tr><td>3. Advance Car</td><td>PSA Close-in Agents</td><td></td></tr><tr><td>4. Staff Advance Car</td><td>Henry Cashen/Chapin/USSS</td><td></td></tr><tr><td>5. Lead Car</td><td>USSS Agents<br/>1 PSA Scty. Officer</td><td></td></tr><tr><td>6. Photo Truck</td><td>Malacanang Press</td><td></td></tr><tr><td>7. Photo Truck</td><td>White House Press</td><td></td></tr><tr><td>8. Presidential Car</td><td>Both Presidents - U.S. Bubble Top</td><td></td></tr><tr><td>9. Follow Up Car 1</td><td>USSS Agents<br/>Dr. Tkach<br/>1 PSA Scty. Officer</td><td>Provides communication<br/>link with USSS</td></tr><tr><td>10. Follow Up Car 2</td><td>PSA Close-in Agents<br/>USSS Agent</td><td></td></tr><tr><td>11. First Ladies' Car</td><td>Mrs. Nixon and Mrs. Marcos</td><td></td></tr><tr><td>12. Follow Up Car 3</td><td>PSA Close-in Agents<br/>1 USSS Agent</td><td></td></tr><tr><td>13. Staff Car A</td><td>Mr. Whitaker, Col. Hughes, Mr. Haldeman</td><td></td></tr><tr><td>14. Staff Car B</td><td>Mr. Ziegler<br/>Lt. Col. Coffey</td><td></td></tr><tr><td>15. Car for Wire Service</td><td>U.S. Press</td><td></td></tr><tr><td>16. Car for Wire Service</td><td>U.S. Press</td><td></td></tr></table>

Manila Event 2-1

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EVENT NO. 3 - PRIVATE SUBSTANTIVE TALKS WITH PRESIDENT MARCOS

SATURDAY, July 26, 1969

3:00 p.m. President Nixon goes from guest suite to the music room where he is received by President Marcos. John Holdridge and one Philippine official will be present. A press pool will cover the opening.

Secretary Rogers, accompanied by Dr. Kissinger, Ambassador Pedersen, Asst. Sec. Green, Mr. Ziegler, and Charge Wilson, go to State Dining Room. There they will join Carlos Romulo, Secretary of Foreign Affairs; Eduardo Romualdez, Secretary of Finance; Placido Mapa, Jr., Director General - President's Economic Staff; Cesar Viratan, Chairman of the Board of Investments; Jose Ingles, Under Secretary of Foreign Affairs; Alejandro Melchor, Under Secretary of Defense; Ernesto Lagdameo, Ambassador to the United States; Thomas Benitez, Assistant Secretary, Department of Foreign Affairs.

5:00 p.m. President Marcos and President Nixon leave the music room, cross the reception hall and enter State Dining Room joining the advisor's talk. (Timing is at the option of Presidents Nixon and Marcos.)

Manila Event 3-1

EVENT NO. 4 - CONTINUED

SATURDAY, JULY 26, 1969

STAFF INSTRUCTIONS CONTINUED:

SPECIAL NOTE:

The evening dinner is _not_ Black Tie, but rather guests will wear dark slacks and Barong Tagalog. The Barong Tagalog and shaving equipment will be made available at the staff members place of residence.

7:40 p.m. Staff members manifested on the helicopter from the Hotel to Malacanang should be aboard their assigned helicopter-listed Event No. 5.

Manila Event 4-3

EVENT NO. 5 - DEPART FOR STATE DINNER AT MALACANANG

SATURDAY, JULY 26, 1969

7:45 p.m. The President departs the Hotel Intercontinental and boards the helicopter for Malacanang. Arrangements have been made so that the President and members of his party can change into the proper attire for the dinner at the Hotel.

HELICOPTER 1
President Nixon
Dr. Kissinger
Col. Hughes
Mr. Taylor
Mr. Haldeman

HELICOPTER 2
Secretary Rogers
Mrs. Rogers
Ambassador Mosbacher
Mrs. Mosbacher
Mr. Chapin
Mr. Cashen
Mr. Whitaker

HELICOPTER 3 - Press Pool

7:55 p.m. The President's helicopter arrives at Malacanang Park.

The President and his party cross the River by boat to the landing at Hero's Hall of Malacanang, and the President proceeds to his suite.

STAFF INSTRUCTIONS:

7:55 p.m. Staff members who have flown in with the President proceed to the reception room. You will be escorted.

8:10 p.m. President and Mrs. Marcos arrive at the Nixon suite and escort President and Mrs. Nixon to the music room for a private exchange of gifts. (Ollie Atkins and official GOP photographer will be present.)

Manila Event 5-1
Revised 7/23/69

EVENT NO. 5 - CONTINUED

SATURDAY, JULY 26, 1969

Mr. Henry Cashen

Lt. Colonel Ralph Albertazzie

Mr. Thomas McGee

Plus 3 American Press

Plus 4 Senior Embassy Officers and their Wives.

9:30 p.m.
After the dinner concludes, toasts are offered by the two Presidents and the Philippine and American National Anthems are played. Press photographers will be present and the toasts will be recorded and made available to the Press.

10:00 p.m.
After the toasts are concluded, the two Presidents and First Ladies leave the dining room and Executive Building via same route used in entering. They cross the gardens to Hero's Hall. In the gardens are musicians and scenes of barrio (village) life.

10:15 p.m.
Upon arrival at Hero's Hall the two Presidents and First Ladies form a receiving line for the Diplomatic Corps and GOP Cabinet officials.

10:45 p.m.
Entertainment begins. It consists of traditional Philippine dances.

11:15 p.m.
Entertainment ends and President and Mrs. Nixon escorted by President and Mrs. Marcos retire to the Guest Suite for the night.

STAFF INSTRUCTIONS:

10:45 p.m. Staff members who have been at the dinner will depart from the entrance to the Malacanang. Cars will be available on your departure.

Manila Event 5-3
Revised 7/23/69

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EVENT NO. 6 - SECOND MEETING WITH PRESIDENT MARCOS

SUNDAY, JULY 27, 1969

STAFF INSTRUCTIONS:

8:30 a.m. Staff Baggage Call
at the Palace and the Hotel.
Bags will be picked up at your
room.

10:00 a.m. Motorcade departs
the front of Hotel for airport.
Staff members have the same car
numbers as on arrival. Those
persons who rode a staff bus
from the airport to the hotel
return to the airport via bus.

10:00 a.m. Staff members at the
Palace should proceed to heli-
copter area for trip to the airport,
per manifest.

President and Mrs. Nixon have private breakfast in
their suite.

9:00 a.m. President Nixon goes from the Guest Suite to the Music Room in Malacanang Palace for the second meeting with President Marcos. John Holdridge is present as notetaker for the meeting.

10:15 a.m. The Meeting ends.

President and Mrs. Nixon and President and Mrs. Marcos
leave Malacanang via the boat landing at Hero's Hall to
go to Malacanang Park across the river. There they
board helicopters for the trip to Manila International
Airport.

Manila Event 6-1

MRS. NIXON'S SCHEDULE
MANILA

SATURDAY, 26 JULY 1969

<table><thead><tr><th></th><th></th></tr></thead><tbody><tr><td>3:00 p.m.</td><td>Depart Malacanang for Reception and Study Center for Children, Department of Social Welfare.</td></tr><tr><td>3:15 p.m.</td><td>Arrive Reception and Study Center for Children. Mrs. Nixon and Mrs. Marcos will be met by:<br>Mr. and Mrs. Gregorio Feliciano. He is Secretary of Social Welfare<br>Dr. Roberto R. Sucgang, Director, Child Welfare Bureau<br>Mrs. Beth Tangan, Director of Center.<br>Tour Center, which will end at Director's Office, Administration Building. Mrs. Nixon will have opportunity to discuss Center's program with Director, welfare workers, volunteers, etc.</td></tr><tr><td>3:35 p.m.</td><td>Depart Center for Nayong Kabattaan (orphanage)</td></tr><tr><td>4:00 p.m.</td><td>Arrive Orphanage. Mrs. Nixon, Mrs. Marcos and entourage will be met by Miss Estelita de Leon, Director. The party will tour Commercial Garden, then meet volunteers from Assumption College (Mrs. Marcos' daughter will be present).<br>Discussion with director and volunteers will take place where volunteers located.</td></tr><tr><td>4:10 p.m.</td><td>Depart orphanage, arrive Philippine Village, a project built from private funds to foster national pride and to encourage handicraft industries. First Ladies will remain in car unless flowers are presented or photographic coverage agreed to. (Socio-economic project)</td></tr><tr><td>4:25 p.m.</td><td>Depart Philippine Village for Cultural Center.</td></tr></tbody></table>

Manila
Page Two

4:35 p.m. Arrive Cultural Center. Mrs. Nixon will get out of car and receive flower bouquet.

4:45 p.m. Depart Cultural Center for Fort Santiago.

4:55 p.m. Arrive Fort Santiago, national monument.
Mrs. Nixon and Mrs. Marcos greeted by:

Mr. Teodoro Valencia, Reporter for Manila
Times

Mrs. Antonio Araneta, Director, National
Museum

Mrs. Carmen Guerrero Nakpil, Director,
Historical Commission (mother of Mrs. Araneta)

Visit to Rizal Museum and cell where many Ameri-
cans and allies (including President Marcos)
were imprisoned during Japanese Occupation.

5:05 p.m. Depart Fort Santiago for Lunetta Park.

5:10 p.m. Arrive at Park. First Ladies debark. Flowers will be presented and Mrs. Marcos will describe various aspects of the park.

If time remains, ladies will drive by
Garden for the Blind.

5:30 p.m. Return to Malacanang.

DEPARTMENT OF STATE

DECEMBER 1968

REPUBLIC OF THE PHILIPPINES

## BACKGROUND NOTES

Population: 36 million (1968 est.)

Capital: Quezon City

The 1,100-mile-long Philippine archipelago, stretching along the southeast rim of Asia, is of strategic importance to the free world. It forms the southern link in a natural line of mutual defense running northward through Taiwan, the Ryukyus, and Japan. The archipelago consists of more than 7,000 islands with a total area of 115,707 square miles, slightly larger than Arizona. Eleven of these islands, however, account for 96 percent of the total land area and the bulk of the population. Luzon, the largest, is about the size of Kentucky, while Mindanao, the second largest, approximates the size of Indiana. Manila, the largest city with a metropolitan population estimated at 3 million, is located on Luzon, some 6,200 miles from San Francisco and 630 miles from Hong Kong. (Quezon City, near Manila, was declared the capital in 1948, but most government activities thus far remain in Manila proper.)

The lowland areas of the Philippines have a year-round warm and humid climate. Manila's average annual temperature is 80° F. The hot, wet season in the Manila area begins in June and extends until November.

The Philippine flag consists of two horizontal bands—the top blue, the bottom red—joining at the staff side with a white triangle. Centered on the triangle is a yellow, eight-rayed sun honoring the first Philippine provinces to revolt against Spain; in each corner of the triangle is a yellow star signifying the territorial divisions of Luzon, the Visayas, and Mindanao.

## THE PEOPLE

The dominant racial stock of the Philippines is Malay. Chinese, Americans, and Spaniards—in that order—constitute the largest alien minorities in the country. English is the lingua franca; approximately 40 percent of the population understand it. The many Philippine languages and dialects belong to the Malay group, but only 10 of these are of regional importance. The three principal languages are Cebuano, spoken in the central islands; Tagalog in the area around Manila; and Ilocano in northern Luzon. Only about 500,000 Filipinos, almost exclusively of the social elite, still speak or understand Spanish as a second language. In an attempt to develop a common language other than English, the Government has supported the creation of a national language (Pilipino) based on Tagalog and has made this

national language a required course in the schools. Despite the multiplicity of tongues, the Philippines has achieved one of the highest literacy levels, about 75 percent, in the East Asian and Pacific area.

The Philippines has one of the highest birth rates in the world, but it has sufficient arable land to accommodate its predominantly agricultural population for some time to come, if it carries out its planned resettlement and development programs for the sparsely inhabited areas. Because of the great variation in terrain, climate, and accessibility, the population, estimated in 1968 to be 36 million, is unevenly distributed, and the densities of some populated areas far exceed the national average of 309 persons per square mile. Most Filipinos live on the islands of Luzon, Cebu, Negros, Bohol, Leyte, and Panay. The other large islands—Mindanao, Mindoro, Masbate, Palawan, and Samar—are only sparsely settled and offer room for an expanded population, as do parts of Luzon.

About 83 percent of the population are Roman Catholic; some 9 percent are Protestant, 5 percent are Moslem, and 3 percent follow other religions, mostly pagans.

## HISTORY

The history of the Philippines may be broken down into four distinct phases: the pre-Spanish period, the Spanish period (1521-1898), the American period (1898-1941), and the years since independence (1946-present). This paper will discuss the last three periods.

## THE SPANISH PERIOD

Ferdinand Magellan claimed the Philippines for Spain in 1521, and for the next 377 years the islands were under Spanish rule. This period was the era of conversion to Christianity (Catholicism), and a typical Spanish colonial social system was developed with a strong centralized government and considerable influence in the hands of the clergy. The Filipinos were restive under the Spanish, and this long period was dotted with uprisings. The most important of these began in 1896 under the leadership of Emilio Aguinaldo, but it was successfully put down by the Spanish authorities the following year.

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## THE AMERICAN PERIOD

In 1898, following the destruction of the Spanish fleet in Manila Bay by Admiral Dewey, the United States occupied the Philippines. Spain ceded the islands to the United States under the terms of the Treaty of Paris (1898) which ended the Spanish-American War. A war of insurrection against the United States, led by revolutionary President Emilio Aguinaldo, broke out in 1899. The United States put down the insurrection, and in 1901 Aguinaldo was captured and swore allegiance to the United States. This state of hostilities is referred to as the Philippine-American War (1899-1902) by many Filipinos.

United States administration of the Philippines was from the first declared to be temporary in nature and had as its goal the development of institutions which would permit and encourage the eventual establishment of a free and democratic government. Therefore, U. S. officials concentrated on the creation of such practical supports of democratic government as public education and a sound legal system. Philippine participation in the legislative processes of the country was introduced early in the American administration. The legislature was established and was largely in Philippine control after the passage of the Jones Act in 1916. A civil service was formed and gradually was taken over by the Filipinos, who were in effective control by the end of the First World War. The Catholic Church was disestablished, and a considerable amount of church land was purchased and redistributed.

In 1935, under the terms of the Tydings-McDuffie Act, the Philippines became a self-governing Commonwealth. Manuel Quezon was elected President of the new government, which was designed to prepare the country for independence after a 10-year transition period. The Second World War intervened, however, and in May of 1942 Corregidor fell. United States forces in the Philippines surrendered to the Japanese who occupied the islands until 1945. As a result of the Japanese occupation, the guerrilla warfare which followed, and the battles leading up to liberation, the country suffered great physical damage and a complete organizational breakdown. Despite the shaken state of the country, both the United States and the Philippines decided to move forward with plans for independence. On July 4, 1946, the Philippines Islands became the independent Republic of the Philippines, in accordance with the terms of the Tydings-McDuffie Act. In 1962, the official Independence Day was changed from July 4 to June 12, commemorating the day independence from Spain was declared by General Aguinaldo in 1898.

## POSTINDEPENDENCE PERIOD

The efforts of the early years of independence were expended in rebuilding the country's economy, with the United States playing a major role in the reconstruction. Complicating the recovery

efforts was the threat posed by the Communist-dominated Huk rebellion in the years 1945-53. Under the vigorous, honest leadership of Ramon Magsaysay, this rebellion was suppressed and communism, as an overt threat to the Government, was removed.

## GOVERNMENT

The Philippine Government consists of an executive branch, a legislative branch with a bicameral legislature, and a judicial branch. The President's term of office is 4 years; he cannot serve more than 8 years consecutively. Senators are elected at large for a 6-year term, one-third of the Senate being chosen every 2 years. Members of the House of Representatives are elected for a 4-year term in the same election in which the President is chosen.

The responsibilities and authority of the Philippine President are similar to but, in relative terms, exceed those of the U. S. President. Unlike his American counterpart the Philippine chief executive possesses the power of an item veto over appropriation, revenue, and tariff bills submitted to him by the Congress. There are also separate elections for the offices of President and Vice President, and it is possible to have incumbents from different parties holding these offices at the same time. The Vice President of the Philippines has no clear-cut duties; for example, he does not, as in the U. S. Government, preside as the President of the Senate. He frequently functions—as may the President—as the head of a ministry. Perhaps as the result of Spanish colonial influence, there is considerable governmental centralization, with vast power in the hands of the officials at Manila.

## POLITICAL CONDITIONS

Traditionally, there have been two major political parties in the Philippines—the Nacionalista and the Liberal. They compete to a considerable extent on the basis of experience and abilities of candidates rather than on formal party platforms.

The Communist Party, which was declared illegal under the Constitution by court ruling, was formally outlawed by the Anti-Subversion Act signed into law in June 1957. Communist insurgent activity, which reached a peak during 1945-50, was broken up under President Magsaysay and no longer constitutes a major threat to the legally established government. However, the current Communist line in the Philippines, which appeals to chauvinist nationalism at home and to neutralism in foreign affairs, attracts some intellectual, student, labor, and peasant support.

In the national elections of November 1965, incumbent President Macapagal (Liberal) was defeated by Senate President Ferdinand Marcos (Nacionalista), a World War II guerrilla hero, who ran on a reform platform vowing, among other things, to rid the administration of widespread corruption, to end smuggling, and to make the Government

3

more responsive to the needs of the people. As a result of the November 1967 elections, the Nationalista Party strengthened its control in the Senate and reversed and widened the Liberals' previous margin of control of local offices.

The Marcos administration has pursued its announced goal of improving the lot of the average Filipino by giving priority to stimulating agricultural productivity and accelerating public infrastructure development. These developmental efforts have been summarized and popularized by the slogan "rice, roads, and schools."

## ECONOMY

The Philippine economy, basically oriented toward free enterprise, performed impressively during the critical period of rehabilitation and expansion in the post-World War II decade. During the past 5 years, gross national product (GNP) has been growing at an estimated annual rate of about 5.6 percent, and in 1967 it reached an estimated level of U. S. $6,228 million or about $180 per capita. While output of all sectors of the primarily agricultural economy is expanding, manufacturing, mining, and construction are rising most rapidly.

Despite such fundamental elements of strength as sizable natural resources, room for population expansion, increased agricultural production, a growing industrial plant, and a relatively high level of popular education, the Philippine economy does confront problems. These include dependence on a predominantly agricultural economy, recurring trade deficits resulting in shortages of foreign exchange, lack of investment capital, and high rates of unemployment and underemployment.

## Agriculture

Agriculture, the largest and most important sector of the Philippine economy, contributes about 34 percent of the net domestic product, directly employs 57 percent of the total labor force, and accounts for 40 percent of total exports. Although food crop production has increased substantially since 1951, largely as a result of an increase in the cultivated area, total output has remained considerably below domestic consumption levels, requiring until recently continued heavy imports of rice and corn in particular. In recognition of this problem, the Government has made self-sufficiency in food crops a major development goal and has been working on programs to enlarge the land area under irrigation; expand rural credit; improve distribution of fertilizers and pesticides; and carry out agrarian reform. Central to success in the endeavor to increase rice production was the development and planting of several improved strains of high yielding rice ("miracle rice") seed in 1967. With the resulting higher yield per acre and with increased multiple annual crops because of the rapid maturity of these strains, the Philippine Government is expected to attain its goal of self-sufficiency in

rice production in the 1969 crop year. It is anticipated that allied efforts being made to increase production of meat and dairy products will by 1970 narrow considerably the production-consumption gap now characteristic of those products.

Cash crops in primary and processed form are the mainstay of the Philippine export trade, constituting 10 of the country's 11 leading exports. These 10 crop-reliant commodities—logs, lumber and plywood, copra, sugar, coconut oil, abaca, beverages and tobacco, dessicated coconut, molasces, and canned pineapple—earned $615 million in world markets in 1967, or more than three-quarters of the value of Philippine exports.

## Industry

The diversification and expansion of industrial production is one of the major goals of the Philippines. Although manufacturing, which accounts for about 19 percent of the gross national product (compared to less than 12 percent in 1953), has been the most dynamic sector of the economy since World War II, its growth has been relatively slow in recent years. Production is still centered mainly around processing and assembly operations, comprising food, beverage, tobacco, and rubber products; textiles, clothing, and footwear; pharmaceuticals; paints; plywood and veneer; paper and paper products; small appliances; and automobiles. Industrial production has been limited by power and transportation facilities, insufficient capital formation, and the shortage of foreign exchange with which to finance necessary imports. Government programs to strengthen industrial development have included protective import duties and taxes; refinancing of distressed industries; and tax incentives for selected industries. In addition, the Government has played the major role in expansion of such infrastructure as telecommunications, roads, and hydroelectric power, and has contributed to private industrial growth through such long-term financing institutions as the Development Bank of the Philippines.

## Foreign Trade

Foreign trade is of great importance to the Philippine economy, representing nearly 40 percent of GNP in 1967. In the steadily expanding volume of trade, the value of Philippine exports is usually slightly less than imports. The export of cash crops in primary and processed form account for slightly more than three-quarters of the value of exports, while exported minerals contribute about 15 percent of total exports. The Philippines is the world's leading supplier of refractory chromite, most of which goes to the United States. Copper in concentrate form is the most valuable mineral export, followed by iron, chromite, silver, manganese, pyrites, mercury, sulphur, limestone, and zinc.

The United States continues to be the leading trading partner of the Philippines, but in a

4

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diminished role both as supplier and customer. In 1967 the United States purchased about 44 percent of Philippine exports (compared with 56 percent in 1956) and supplied about 33 percent of the Philippine imports (59 percent in 1956). Japan ranks a close second as a trading partner, with the European Economic Community (EEC) a distant third.

## Economic Relations with the United States

The economic relationship between the United States and the Philippines is basically set forth in the revised United States-Philippine Trade Agreement of 1955 (Laurel-Langley Agreement) which expires in 1974. Under this agreement each country accords the other gradually diminishing preferential tariff treatment. In 1968 the effective Philippine rate of duty on U.S. imports is 90 percent of the normal rate, while Philippine exports enter at 60 percent of the normal rate. In addition the Philippines receives duty-free quotas on cigars, tobacco, coconut oil, and buttons, while Philippine cordage and sugar are guaranteed access to the U.S. market at preferential duty rates up to absolute quota levels. Investors of both countries doing business in the other receive national treatment or "parity" in natural resources and public utility fields, and nondiscriminatory treatment in all others. In anticipation of the expiry of the Laurel-Langley Agreement in 1974, Philippine and U.S. panels held discussions in 1967 and 1968 to consider the basic principles which should underlie a successor agreement.

## U.S. Assistance

Since gaining independence in 1946, the Philippines has received approximately $1.8 billion from the United States in economic and military assistance. Net loans, principally for long-term development purposes or from the Export-Import Bank, constituted about $153 million of this total as of June 1968. Also included in the total figure are about $708 million in war damage and rehabilitation payments.

## FOREIGN RELATIONS

The Philippines has based its foreign policy upon a free-world orientation and a close alliance with the United States. The Philippine Government is an active participant in the United Nations and in the Southeast Asia Treaty Organization (SEATO) of which a former Philippine Chief of Staff is now serving a second term as Secretary-General. Under President Marcos, the Philippine Government in 1966 dispatched to South Viet-Nam a military civic-action contingent, which in December 1968 numbered 1,500 men; and in October 1966 the Philippines hosted the Seven-Nation Manila Summit Conference on Viet-Nam.

In recent years the Philippines has vigorously sought to broaden its role of participation and

leadership in Southeast Asian regional affairs. The Philippines was a leader in the formation of the Asian Development Bank, which opened its headquarters in Manila in 1966. Further signifying an increasing move toward constructive Philippine involvement in Asian regional affairs was the initiative taken by the Marcos administration in early 1966 to reactivate the Association of Southeast Asia (ASA), which was replaced in 1967 by an expanded successor organization, the Association of Southeast Asian Nations (ASEAN). The Philippines is also a charter member of the Asian and Pacific Council (ASPAC), formed in 1966.

While the Philippines recognizes all free nations in Asia, its relations with Malaysia have been periodically troubled since 1962 when the Philippines formally raised a claim to the territory of Sabah in North Borneo. In 1963 the Philippines withheld recognition from Malaysia as the successor to Malaya incorporating the state of Sabah. President Marcos reestablished relations in mid-1966, but improvement in the bilateral relationship was again set back in 1968 when a series of events related to the Philippine claim culminated in the suspension of diplomatic relations.

## PRINCIPAL GOVERNMENT OFFICIALS

President—Ferdinand E. Marcos

Vice President—Fernando Lopez

Secretary of Foreign Affairs—Carlos P. Romulo

The Philippines maintains an Embassy in the United States at 1617 Massachusetts Ave., N.W., Washington, D.C. 20036. The Philippine Ambassador to the United States is Salvador P. Lopez.

## PRINCIPAL U.S. OFFICIALS

Ambassador—G. Mennen Williams

Deputy Chief of Mission—James M. Wilson, Jr.

Director, U.S. AID Mission—Wesley H. Haroldson

Chief, Joint U.S. Military Advisory Group—Maj.

Gen. Lloyd H. Gomes

Public Affairs Officer—Henry L. Miller

Political Counselor—Francis T. Underhill, Jr.

Economic Counselor—William E. Knight II

Consul General—Wilbur P. Chase

Administrative Counselor—Eldon B. Smith

Principal Officer and Consul, American Consulate, Cebu—Victor Wolf

The U.S. Embassy is located at 1201 Roxas Blvd., Manila.

## READING LIST

Abueva, Jose J., Focus on the Barrio.

Golay, Frank H., The Philippines—Public Policy and National Economic Development.

Golay, Frank H., ed., The United States and the Philippines (series of seven background papers prepared for participants in 1966 Philippine-American Assembly).

5

Golay, Frank H., ed., *The U.S. and the Philippines—The American Assembly*.

Grossholtz, Jean, *Politics in the Philippines*.

Henderson, William, ed., *Southeast Asia—Problems of United States Policy*.

Hollnsteiner, Mary R., *The Dynamics of Power in a Philippine Municipality*.

Lande, Carl H., Leaders, Factions and Parties—
The Structure of Philippine Politics.

Ravenbolt, Albert, *The Philippines—A Young Republic on the Move*.

Rizal, Jose, *Noli Me Tangere*.

Rizal, Jose, *El Filibusterio*.

Spence, Hartzell, *For Every Tear a Victory*
(biography of President Marcos).*

Taylor, George S., *The Philippines and the United
States—Problems of Partnership*.

Valeriano, Napoleon D., and Bohannan, Charles
T. R., *Counterguerrilla Operations—The Philippine Experience*.

New Department of State Series . . .

ISSUES IN UNITED STATES FOREIGN POLICY

As an aid in the study of foreign relations
the Department of State is now publishing a
new series of illustrated pamphlets entitled
*Issues in United States Foreign Policy*.

The purpose of this new educational series
is to assist in identifying the elements of inter-
national problems, rather than to propose solu-
tions—to define questions rather than answers.
To this end, emphasis is given not primarily to
policy decisions, but to the context within which
decisions must be made.

The pamphlets in the *Issues* series are de-
signed primarily for participants in adult study
groups and students in high schools and col-
leges. A discussion guide for teachers and

group leaders will accompany each pamphlet
to facilitate its use as a study tool.

The first pamphlet published in the series,
*The Middle East*, is available from the Super-
intendent of Documents, U.S. Government
Printing Office, Washington, D.C. 20402, for
45¢ (Dept. of State pub. 8409). The dis-
cussion guide is available separately for 10¢
(Dept. of State pub. 8417). Orders of 100
or more copies of either publication sent to
the same address are sold at a 25 percent
discount.

Other *Issues* now in preparation include such
topics as Communist China, Food and Popula-
tion, Foreign Aid, Liberal Trade vs. Protec-
tionism, Africa, Latin America, NATO, and
East-West Trade.

DEPARTMENT OF STATE PUBLICATION 7750

Revised December 1968

Office of Media Services
Bureau of Public Affairs

6

[LC]

# BACKGROUND NOTES SERIES

*Background Notes* are short, factual pamphlets about various countries and territories, written by officers in the Department of State's geographic bureaus and edited and published by the General Publications Division, Office of Media Services, Bureau of Public Affairs. Each *Background Note* includes information on the country's land, people, history, government, political conditions, economy, and foreign relations. Included also is a map and usually a brief bibliography. The State Department has published more than 150 Notes to date.

In making up the collected volume, *Background Notes on the Countries of the World*, the Superintendent of Documents includes all the Notes in stock at the time the order is processed. Due to revising and reprinting, it is not possible to assure an adequate stock of every Note at all times, but each collected volume will include at least 125 current Notes. Should any current Notes be missing from the collected volume, they may be purchased individually from the Superintendent of Documents and delivery will be made as soon as new stocks are available. Subscribers to the following service will automatically receive missing Notes which are under revision.

Updated *Background Notes* and occasional new releases can be obtained on a regular basis through a subscription service offered by the Superintendent of Documents. The Department of State plans to issue updated versions of approximately 75 *Background Notes* a year. Subscribers will receive all revised or new Notes as they are published during a 12-month period beginning at the time of subscription. These Notes can be inserted in the looseleaf compilation in place of the earlier versions.

A list of the more than 150 *Background Notes* comprising the series is included with each collected volume, or a copy may be obtained from the Superintendent of Documents at the address below. Notes continue to be for sale individually as well as in a set, and by subscription.

## How To Obtain Background Notes

Write to the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402, for any item, or combination of items, from among the following:

1) Complete set of all currently in stock *Background Notes on the Countries of the World* (without binder) ... $6.00 per set, plus $1.50 for foreign mailing.

2) One-year subscription service for approximately 75 updated or new *Background Notes* (without binder) ... $3.50 per year, plus $3.00 for foreign mailing.

3) Hidden-hinge binder for *Background Notes* ... $1.50 each, plus 40 cents for foreign mailing. (Consists of front and back pressboard cover and two fasteners.)

4) Individual *Background Notes* ... $0.10 each, plus 25 percent for foreign mailing. (Orders of 100 copies or more of the same Note sent to the same address, are sold at a 25 percent discount.)

DEPARTMENT
OF STATE
PERIODICALS

Users of *Background Notes* who would like to follow U.S. foreign policy developments regularly will find the following periodicals helpful:

THE DEPARTMENT OF STATE BULLETIN

The official record of U.S. foreign policy, this weekly periodical contains statements made by the President, the Secretary of State, the U.S. Representative to the United Nations, and other principal officers of the Government. Authoritative original articles on various aspects of international affairs are also featured. Information is included concerning treaties and international agreements to which the United States is or may become a party. Current publications of the Department, United Nations documents, and legislative material in the field of international relations are listed.

FOREIGN POLICY BRIEFS

A succinct statement of current foreign policy, this fortnightly digest covers significant foreign policy developments and provides background material on current policy problems. Information sources of all foreign affairs agencies of the Government are drawn upon, and descriptions of the latest foreign policy publications, films, and audiotapes are included.

How to Obtain:

The *Bulletin* and the *Briefs* are available from
the Superintendent of Documents, U.S. Government
Printing Office, Washington, D.C. 20402. *Bulletin*:
52 issues, domestic $16.00, foreign $23.00, single
copy $0.30. *Briefs*: 26 issues, domestic $1.25,
foreign $2.25, single copies not available. Sample
copies for prospective subscribers may be obtained
without charge from the Distribution Control Divi-
sion, Office of Media Services, Department of State,
Washington, D.C. 20520.