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President Manuel A.

Roxas Policies from 1946-1948

Following were the highlights of his presidency:

I. Socio-Political
1. Stood to withdrew and surrender all rights of supervision, control and sovereignty
of the United States to the Philippines.
2. Parity Rights Amendment to the Constitution of the Philippines in 1946.
3. Conduct actions against the HUKBALAHAP movement.
4. Department of Foreign Affairs (July 4, 1946) -
5. Military Bases Agreement (March 14,1947)
II. Trade/Economics
1. Executive Agreement on Trade
2. Exclusive Purchasing Agreement
3. Joint Philippine-American Finance Commission
4. Creation of Central Bank
5. Surplus Agreement
6. Asian Economic Recovery – 1946
7. Election by the Economic and Social Council (ECOSOC) – 1946
8. Philippine- Chinese Treaty of Friendship – 1947
9. Japanese purchase in the Philippines – 1947
10. The Economic Commission for Asia and the Far East (ECAFE)-1947
11. Philippine Rehabilitation Finance Corporation – 1947
12. Sugar Industry
13. Tenant Act (Republic Act No. 34)
14. Republic Act No. 55

III. Foreign Policy

1. Treaty of General Relations
2. Philippine-American Defense Agreement
3. Military Bases Agreement
4. Parity Amendment
5. President Roxas’ stand against International Communism
Trade and Economy:
1. Exclusive Purchasing Agreement
2. Bell Trade Act
1. Stress Philippine Participation in World Affairs
2. Philippine-Chinese Treaty of Friendship
3. Foreign Policy towards Japan
4. General Amnesty to guerrillas who were imprisoned during World War 2
Calica, Jamie Lin
Calizo, Kristine
Carvajal, Job Jobet
Combatir, Alliah Eryka
Dayanghirang, Enrico
Patricio, Allysa

1.1 Stood to withdrew and surrender all rights of supervision, control and sovereignty of
the United States to the Philippines

On July 4, 1946, pursuant to the provisions of the Tydings-McDuffie Law or the

Philippine Independence Act, the Commonwealth of the Philippines became the Republic of
the Philippines—the Third Republic. It was on this date that the United States of America
formally recognized the independence of the Philippines and withdrew its sovereignty over
the country. In ceremonies held at the Independence Grandstand (a temporary structure built
in front of the Rizal Monument), the flag of America was lowered and the Philippine flag
was raised to fly alone over the country.
The independence of the Philippines—and the inauguration of its Third Republic
—was marked by Manuel Roxas re-taking his oath, eliminating the pledge of allegiance to
the United States of America which was required prior to independence, this time as the first
President of the Republic of the Philippines. The Congress of the Commonwealth then
became the First Congress of the Republic, and international recognition was finally
achieved as governments entered into treaties with the new republic.

1.2 Parity Rights Amendment to the Constitution of the Philippines in 1946.

In accordance to the demands of the Americans to have same rights same as of the
Filipinos in the Philippines, that is to utilize natural resources and to own lands, a Parity
Rights amendment in the constitution was proposed to be done. Stated in the constitution,
foreigners are prohibited to land ownership in the country. For this to happen, it should be
passed through a plebiscite that is subject for approval or disapproval of the people. The
amendment was then approved by 8-1 majority. It was signed on September 18, 1946 and
was ratified on October 21, 1946.

1.3 Conduct actions against the HUKBALAHAP movement.

The Hukbo ng Bayan Laban sa Hapon (HUKBALAHAP) movement sprang up as
a reaction to the resistance of the Filipino people to the Japanese regime. It was established
on March 29, 1942 with Luis Taruc as its leader. It was formed by peasant leaders, most of
them are farmers, asking for their own land ownership. President Roxas, as the president just
after the war was finished, had the task on restoring the faith of the people to the
government. He conducted measures to prevent these people from conducting massive and
underground illegal movements but, unstopped, the Huks were involved in the Maliwalu and
Masico massacres. Because of this, President Roxas declared it as an illegal association on
March 6, 1948 for acts of sedition and measures to keep these people in breeding
dissatisfaction in the government has been done. President Manuel Roxas implemented
Administrative order no.17 creating the Guerilla Amnesty Commission.
1.4 Department of Foreign Affairs (July 4, 1946)
The Philippines underwent colonial rule under the United States from 1898 to
1946, and Japanese occupation from 1942 to 1944. The country regained independence,
including full control of foreign affairs and diplomatic matters, on 4 July 1946. Commonwealth
Act No. 732 was passed creating the Department of Foreign Affairs. Shortly thereafter, President
Manuel Roxas issued on September 16 of that year Executive Order No. 18 providing for the
organization and operation of the DFA and the Foreign Service. The main tasks of the DFA then
were to assist in post-war rehabilitation, formulate policies for investment promotion, and
establish diplomatic relations with other countries.

1.5 Military Bases Agreement (March 14,1947)

The agreement provides principally for the granting by the Philippines to the
United States the right to retain the use of the bases in the Philippines. As to mutual cooperation,
the Agreement states:
1. It is mutually agreed that the armed forces of the Philippines may serve on United
States bases and that the armed forces of the United States may serve on Philippine
military establishments whenever such conditions appear beneficial as mutually
determined by the armed forces of both countries.
2. Joint outlined plans for the development of military bases in the Philippines may be
prepared by military authorities of the two Governments.
The Agreement was set for a period of 99 years subject to extension thereafter as
agreed by the two Governments. This agreement would undergo amendments over the years.
Notably in the 1966 amendment, the agreement was cut down to 25 years of the unexpired
portion of the 99 years, expiring in 1991.

2.1 Executive Agreement on Trade

The Executive Agreement on Trade was signed with the United States represented
by the Ambassador McNutt in the afternoon of 4 July 1946, based on authority from
Congress given the day before Independence. The Philippines adopted a Joint Resolution
proposing a Parity Rights Amendment to the constitution of the Philippines.

2.2 Exclusive Purchasing Agreement

It is an exclusive purchasing agreements for abaca, copra and coconut oil with the
United States Reconstruction and Finance Corporation and the Commodity Credit
Corporation to assure markets for these products. The extension of this credit by the RFC to
the Philippines was through the amount of $75 million at the rate of 2 percent per annum for
the latter’s budgetary needs for 1947. President Roxas requested for a $400 million
budgetary loan fir five fiscal years from 1947-1951 and another $250 million from the
Export-Import Bank.

2.3 Joint Philippine-American Finance Commission

It was was established in 1946 and its report of 7 June 1947 recommended that
the Philippine Government meet its 1948 expenditures from taxation and domestic
borrowings; called for the creation of Central Bank.

2.4 Creation of Central Bank

It was establish to regulate money supply of the Philippines to meet the internal
needs of the economy. The creation of the Central Bank of the Philippines was to help
stabilize the Philippine dollar reserves and coordinate and the nation’s banking activities
gearing them to the economic progress.

2.5 Surplus Agreement

On 11 September 1946, President Roxas and the Central Field Commisioner of
the Foreign Liquidation Commission signed the Surplus Agreement. It contained provisions
on how to utilize the $137b million worth of surplus property in the Philippines left after the
war. One provision called for the transfer of Surplus property valued at $100 million to be
used under the Philippines Rehabilitation Act. The balance of $37 million was to be utilized
in three ways: $32 million to answer for the obligations arising from the issuance of
authorized wartime emergency or guerilla currency; the $3 million to purchase real estate in
the Philippines for the United Sates official use and the $2 million for the education and
cultural activities administered by the United States Edcuational Foundation in the

2.6 Asian Economic Recovery

The Philippine took active part in United Nations Deliberation on programs and
funds for Asian Economic recovery. The first UN program to which the Philippines was elected
to was the Temporary Sub-Commission on Economic Reconstruction of Devastated Areas and
the Philippine delegation was represented at its sessions held in London in August 1946. The
Philippine emphasized increased economic and financial assistance to underdeveloped Asian
countries in post war reconstruction plans.
2.7 Election by the Economic and Social Council (ECOSOC)
The Philippines was elected as an initial member by the Economic and Social
Council (ECOSOC) to sit on the Commission in Human Rights, for a period of 4 years.
General Romulo proposed in the General Assembly an International conference to discuss
freedom of the press. The Conference on Freedom of Information proposed by Romulo
convened at Geneva from 23 March to 21 April 1948 and he was elected its president, This
Geneva conference drafted three important conventions, various resolutions and the
Declarations and Covenant of Human Rights

2.8 Philippine- Chinese Treaty of Friendship

On 15 May 1947, The Philippine Senate concurred in ratification of the
Philippine-Chinese Treaty of Friendship. On 18 April 1947 President Roxas and Minister Chen
signed the Treaty which included provisions to exclude China from any advantage accorded the
United States and the rights of domestic Chinese in the Philippines was given due recognition.
There were then about 136,000 registered Chinese in the Philippines.

2.9 Japanese purchase in the Philippines

On 15 August 1947 an agreement was signed for trade on a government- to-
government basis provided that credits allocated for Japanese purchases in the Philippines should
not exceed the amount of Philippine sales to Japan. However, the Philippines was not quite up to
trade openly with Japan yet, because of prevailing anti-Japanese feeling.

2.10The Economic Commission for Asia and the Far East (ECAFE)
It is the established upon recommendation of the temporary Sub-Commission.
During its second session held in Baguio City, Philippines, on 24 November 1947, President
Roxas requested a Marshal Plan for Asia to cope with pressing economic problem.

2.11Philippine Rehabilitation Finance Corporation

President Roxas, with bold steps, met the situation with the same confidence he
exuded in his inaugural address, when he said: "The system of free but guided enterprise is our
system". Among the main remedies proposed was the establishment of the Philippine
Rehabilitation Finance Corporation. This entity would be responsible for the construction of
twelve thousand houses and for the grant of easy-term loans in the amount of 177,000,000 pesos.
2.12 Sugar Industry
Roxas Holdings, Inc. is the largest integrated sugar business and the first mover in
the area of agribusiness in the Philippines. Concentrating on the sugar industry, President Roxas
would exert such efforts as to succeed in increasing production from 13,000 tons at the time of
the Philippine liberation to an all-high of one million tons.

2.13 Tenant Act (Republic Act No. 34)

Republic Act No. 34 was enacted to establish a70-30 sharing arrangement
between tenant and landlord. The 70% of the harvest will go to the person who shouldered
the expenses for planting harvesting and for the work animals. It also reduced the interest of
landowners’ loansto tenants at not more than 6%. President Roxas also negotiated for the
purchase of 8,000 hectares of lands in Batangas owned by the Ayala-Zobel family. These
were sold to landless farmers.

2.14 Republic Act No. 55

Provided for a more effective safeguard against arbitrary ejectment of tenants. It is
also an act to impose a war profit tax.

III.1 Treaty of General Relations

It provided for reciprocal diplomatic privileges and immunities; the United States Foreign
Service would represent the interests of the Republic abroad where no Philippine Representation existed.
While this treaty was not yet effective, and pending ratification, a provisional Agreement of General
Relations was signed at Malacañang on the same day as an interim measure. In this document, The United
States again recognized Philippine independence and provided for mutual diplomatic privileges and

III.2 Philippine-American Defense Agreement

This followed the Military Bases Agreement. It is to ensure Philippine sovereignty and
the necessity to strengthen collective security in the Western Pacific.

III.3 Military Bases Agreement

1947 Military Bases Agreement gave the United States a 99-year lease on a number of
Philippine military and naval bases in which U.S. authorities had virtual territorial rights. In August 1951,
a mutual defense treaty (MDT) was signed between representatives of the Philippines and the United
States. It also allowed the United States to establish, maintain, and operate air and naval bases in the
country for a 99-year lease (subject to extension). It contained twenty-nine articles dealing with the rights
and obligations of both the Philippines and he United States and included a listing of sites for bases.

III.4 Parity Amendments

President Manuel Roxas signed an Executive Agreement on Trade with the United States
represented by Ambassador Paul V. McNutt. On 18 September 1946, The Philippine Congress adopted a
Joint Resolution proposing Parity Rights. It granted the United States’ citizens and corporations equal
rights with the Filipinos in the utilization and exploitation of its natural resources and the operation of
public utilities.
III.5 President Roxas’ stand against International Communism


III.6 Exclusive Purchasing Agreement

III.7 Bell Trade Act

In 1946, the US congress offered 800 million dollars as rehabilitation money in exchange
for the ratification of the Bell Trade Act. It was passed by the US congress specifying the condition of the
Philippine economy governing the independence of the Philippines from the Americans. A system of
preferential tariffs was implemented which discouraged government officials to control the country’s
import-export market. The Philippine peso followed the US dollar currency. Aggravating the Filipino
citizens, U.S. citizens and corporations were granted equal access to the natural resources of the country.
Many nationalists were not in favor of the bell trade act because it was “a curtailment of Philippine
sovereignty, virtual nullification of Philippine independence” as said by former president Sergio Osmeña.
It was an act passed by the United States Congress specifying policy governing trade between the
Philippines and the United States following independence of the Philippines from the United States and
should be ratified by the Philippine congress in exchange for $800 million post war rebuilding funds.

III.8 Stress Philippine Participation in World Affairs
The Philippines gained membership to international entities, such as the United Nations
General Assembly, the United Nations Educational, Scientific and Cultural Organization (UNESCO),
the World Health Organization (WHO), the International Labor Organization (ILO), Economic and
Social Council (ECOSOC), United Nations Commission on Palestine (UNCOP).

III.9 Philippine-Chinese Treaty of Friendship

On May 15, 1947, the Philippine Senate concurred in ratification of this treaty. This
includes provisions to exclude China from any advantage accorded the United States and the rights of
domestic Chinese in the Philippines was given due recognition. There were about 136,000 Chinese who
are registered in the Philippines. Among other provisions were: The right of nationals to travel or reside in
the territory of the other in accordance with regulations and laws; they had the privilege to establish
schools and enjoy freedom of peaceful assembly, publication, worship religion and burial and maintaining
cemeteries; and also the right to acquire, inherit, possess, means, any kind of movable or immovable
property and to engage in trade and other peaceful and lawful pursuits throughout the whole extent of the
other country.

III.10 Foreign Policy towards Japan

Japan would never again be a menace to world peace through genuine political and
economic reform; to welcome a democratic and non-militaristic Japan as a friendly neighbor at a
suitable time, and to obtain early and equitable reparations for war damages caused by Japan.

III.11 General Amnesty to guerrillas who were imprisoned during World War 2
On January 28, 1948, General Amnesty was given to all those arrested for conniving with
Japan. An earlier amnesty hindered Roxas because of his fear that the Americans might stop rendering
financial assistance to the country.