MLQ 1st State of the Nation Address

MessageOf His Excellency Manuel L. QuezonPresident of the PhilippinesTo theFirst National AssemblyOn theCountry’s conditions and problems

[Delivered at the Opening of the First Session in the AssemblyHall, Legislative Building, Manila, June 16, 1936]Mr. Speaker, Gentlemen of the National Assembly:Seven months ago this Commonwealth was inaugurated amidstthe general rejoicing of our people, and with misgivings on thepart of some timorous individuals. Today the Government of the Commonwealth counts with the confidence and respect of all. True, there are still a few prophets of disaster, but theseneed not seriously disturb us, for it is evident that it is only theirwish that is father to their forebodings.

Our Relations with America

Under the provisions of the Independence Act incorporatedinto our Constitution, the Government of the United Statesretains direct control and supervision over our foreign affairs,as well as certain specific powers in a few cases of domesticcharacter. These powers are vested in the President of theUnited States whose representative in the Islands is the UnitedStates High Commissioner. My personal and official relations

with High Commissioner Frank Murphy have been mostcordial, and the highest spirit of cooperation has characterizedthe transactions of our Government with the WashingtonAdministration.It was with a deep sense of loss that our people saw HighCommissioner Murphy depart for the United States and it istheir hope that he will soon return to the Philippines.

The Gold Reserve Funds and the Excise Tax on Oil

It is with regret that I have to inform you that the Senate of theUnited States has passed a bill repealing the Act recognizing theequity of the Philippine Government on the sum of P47,000,000 arising from the devaluation of the dollar as areimbursement for the depreciation of our reserves deposited inthe United States. Were this bill to pass Congress, ourGovernment would be made to incur a loss or that Americanofficials have done contrary to the recommendation of Filipinorepresentatives. I have not, however, given up the hope that theHouse of Representatives will not follow the action of theSenate, for I cannot conceive that America, which in this caseacted as the guardian of Filipino interests, should want to profitfrom the losses of her ward. I know that High CommissionerMurphy has done and is doing everything he can to secure thisfund for the Philippines.Again there are attempts to enact legislation reverting to theTreasury of the United States the proceeds of the excise tax oncoconut oil imported from the Philippines. The amount of collections is now around P56,000,000 and is deposited in theUnited States Treasury. Payment to the Government of thePhilippines in accordance with the law has been suspended inview of cases pending in the courts contesting the validity of thelaw. It is my earnest belief that Congress will not approve theproposed legislation above referred to. Heretofore, whenever

the Congress of the United States has taxed goods or productsimported into the United States from the Philippines, invariablyit has provided the payment of all collections to ourGovernment. It is, therefore, beyond my comprehension that atthis stage of our relations with America that record of fairdealing and justice should be reversed. We are also countingupon the help of Commissioner Murphy and other friends inCongress to prevent the enactment of the said law.

Our Foreign Population

I am happy to be able to inform the Assembly that the foreignpopulation of the Islands has, since the inauguration of theCommonwealth, shown a genuine desire to cooperate with ourpeople to make this government a signal success.Much has been printed in the local and foreign papersregarding the ownership of large tracts of land by Japanesesubjects in Davao. There is an impression that Davao is actuallyowned by the Japanese. Such is not the case.The total area owned, leased and/or cultivated by the Japanesein Davao is about 60,000 hectares out of almost two millionhectares that constitute the total area of the public domain inthat province. It is true that Japanese investments in Davao areconsiderable, and that there are doubts expressed as to thelegality of some of the transactions entered into betweenFilipinos and Japanese regarding the public domain leased toFilipinos by the Government. In these cases the Governmentwill act in accordance with law and equity. Before any course of action is finally decided upon by the Administration, I shalladvise with the Assembly and take no step without yourprevious knowledge. There is nothing in the so-called Davaoproblem that should cause serious concern.

Peace and Order