- Believed economy needed American aid to

KAS1 survive -> less unemployment -> less radicals

- Wanted to promote America’s Far East Policy to
Finals reviewer invite American capital
- All loan requests
▪ Export-Import Bank
- Denied requests
Chapter 8 ▪ United Nations Relief and Rehabilitation
Administration (UNRRA)
- Limited loans
BACKGROUND POST WWII
- Existence of armed sectors with radical leadership • Julius Edelstein
- United States now a major world power - U.S. Navy Commander
- New goals of post-war American policy - Principal speech writer of Roxas
▪ Forward American businesses - Liaison man between Malacanang, US Embassy
▪ Underdeveloped nations as secondary areas of
expansion FOUNDATIONS OF NEW NEOCOLONIAL
▪ Displace England
STRUCTURES
• Bell Trade Act
• Marshall Plan
- Eight more years of duty-free trade
- Salvage economies of war-ravaged sister nations
- Free trade would only terminate with Philippine
- Make American markets in Europe by sending
independence
money (through tax)
- Unlimited entry of American goods
- Use the raw materials of underdeveloped
- Philippine exports to US subjected to quotas
countries \\
- Fixed the rate of exchange (subject to US
• Capitalist Objectives
approval)
- Anti-communism, sustain capitalism
• Equal Rights/Parity Amendment
- American propaganda created the cold war
- Forced us to grant U.S. citizens and corporations
against the “Red menace”
the same rights as Filipinos to exploit Philippine
• John Foster Dulles
natural resources
- American who pioneered intervention policies
• William Clayton
- After victory of Chinese communists and Korean
- US Assistant Secretary of State
War
- Wanted to forego the use of absolute quotas
(basta maraming sinabing economic echos)
US IN THE PHILIPPINES • Van Lear Woodward
• Main Goals - Director of the Foreign Economic Administration
- Colony to neocolony mission in Manila
- Market for American goods - Promised to give American companies the right
- Source of raw materials connections
- Field for American investments • Priority List of American Firms
- Military and naval bases on Philippine soil but ▪ Connell Bros. Co., Ltd.
outside Philippine sovereignty ▪ Atkins, Kroll and Co., Inc.
- Politicians now demonstrated loyalty to the US ▪ Libby, McNeil and Libby (Philippines, Inc.)
- Opposition to restoration of status quo by ▪ Getz Bros. and Company
a. Peasants of Central Luzon ▪ Ligget and Myers Company
b. Urban Workers in unions ▪ Kuenzle and Streiff Inc.
c. Democratic Alliance ▪ J.P. Heilbronn and Company
d. Armed Hukbalahap • Senator Millard Tydings
- Sponsored the Bell Act
• Manuel Roxas • Paul McNutt
- Sponsorship by MacArthur and assistance of High - Influenced the Bell Act
Commissioner McNutt -> accept American
influence
 -Features of the act recommended by his
economic adviser E.D. Hester
- Blackmailed the Philippines into accepting Bell
Trade Act by prohibiting large amounts of war
damage compensation (kapal ng mukhaa)
• Philippine Rehabilitation Act
- Reconstruction of highways, port and harbor
facilities
- Surplus military property
- Compensation of property losses and damages
- Roxas supported the Bell Trade Act, thinking it was
the key to rehabilitation
- Heavily criticized by Nacionalista senator Carlos P.
Garcia
- To get the bill approved, Nacionalista and
Democratic Alliance senators were investigated ->
could not take senate seats
- Roxas asked former President Osmena for help
• Julius Edelstein
- Transferred polling places to population centers
- To reduce risk of Hukbalahap
MILITARY AGREEMENTS
• Military Bases Agreement
- Free use of bases for 99 years
- Clark Field air base in Pampanga and Subic, US
Seventh Fleet base in Zambales
- With exclusive American jurisdiction
• Military Assistance Pact
- To develop the Philippine armed forced
- Supply arms, ammo, and supplies
- Train Philippine military personnel
- Send officers to US military schools
• Joint US Military Advisory Group (JUSMAG)
- To advise the Philippine Army, Constabulary, Air
Force, Navy, and Intelligence Services
AGRARIAN TERROR IN CENTRAL LUZON
- Roxas’ victory a chance for landlords to destroy the
mass peasant movement
• Pablo Angeles David
- Newly elected governor of Pampanga
- Once captured by Huks
• Republican Social Movement
- By Pablo Angeles David
- Fascist group
- Supported raiding of Huk barrios
• Agrarian Commission
- By Roxas to study the tenancy problem
-Caused Huk squadrons to group together for
defense in Pampanga and Nueva Ecija
• Program for Agrarian Reform
- Asked for reforms, not revolutionary change
- Wanted resale of land to tenants and abolition of
tenancy
- Opposed the Bell Trade Act
- Wanted recognition of citizens’ rights to bear
arms
• Pacification plan
- (akala natin tapos na tayo magmemorize ng
names? We were wRONG sis)
a. Secretary of Interior Jose Zulieta as over-all in
charge of pacification campaign
b. Juan Feleo in Nueva Ecija
c. Mateo del Castillo in Bulacan
d. Alejandro Simpauco in Tarlac
e. Luis Taruc in Pampanga
• Republic Act No 4.
- Called for surrender of arms
- Huks wanted some demands first
a. Right to bear arms
b. Disbanding of armed forces except regular
police
c. Establishment of barrio guards
d. Dropping of all charges against Huks for anti-
Japanese activities
e. Removal of anti-peasant local officials
f. Guarantee that peasants would be secure
from arrest, torture, and imprisonment
g. Implementation of crop-sharing law
- Caused the intensification of activity by Military
Police and civilian guards
- Mass raids and checkpoints
- Feleo kidnapped in Nueva Ecija
- Government declared war on Huks -> many
unnecessary casualties
- Still, popular sympathy for Huks -> supplies to Huk
squadrons and joining the Huk movement
HUK MOVEMENTS IN OTHER REGIONS
- Due to crackdown in Central Luzon
- New organizations in
a. Bataan
b. Zambales
- Strengthening of old forces in
a. Laguna
b. Tayabas
- New footholds in
a. Pangasinan
b. Nueva Viscaya
 c. Isabela • Rehabilitation Finance Commission
d. Visayas - Chairman: Primitivo Lovina
- Created propaganda appeals to Constabulary - Loan Prioritization Head: Jose Yulo
soldiers - Had stocks in the sugar industry
- Gave priority to sugar industry ->
• People’s Security Police dependence on American sugar market
- Created army reports and newspaper accounts • Surplus Property Commission
against spies and informers - Also riddled with corruption
• James Halsema - Did not distribute the true amount of military
- From the Associated Pres supplies
- Interviewed Luis Taru, who demanded for:
▪ Full enforcement of the Bill of Rights ELPIDIO QUIRINO AS PRESIDENT
▪ Dismissal of al charges against Huks - President Roxas died of a Heart Attack in Clark Field,
- To disprove the idea that the Huks were crushed Pampanga
• Notable Victories - Vice President Elpidio Quirino became president
▪ Seizure of Pantabangan - Vowed for real independence
▪ Raid on Majayjay ▪ Abrogation of Bell Trade Act and Military Bases
▪ Raids on towns of San Isidro, Laur, Tarlac, Agreement
Pampanga, Nueva Ecija, and Bulacan ▪ Amnesty Proclamation (for Hukbalahap and
Partido Komunista ng Pilipinas members who
- President Roxas outlawed the Hukbalahap and the surrendered all their arms and ammo)
Pamantasang Kaisahan ng Mambubukid (National - Luis Taruc made negotiations with the brother of
Peasant Union) Elpidio, who was Judge Antonio Quirino

• Partido Komunista ng Pilipinas (Communist Party of • Social Amelioration Committee

the Philippines) - Insignificantly broke up landed estates
- Focused on organizing urban workers
- Created a Trade Union Division - Huk prisoners not released, raids throughout Central
- Guillermo Capadocia and South Luzon
- Mariano Balgos - Negotiations with Quirino collapsed
- Pedro Castro - Creation of schools for PKP cadres (called Stalin
- Led to Committee on Labor Organization, universitied by Western newspapers)
renamed Congress of Labor Organizations - PKP parted ways from the Democratic Alliance, who
- Affiliate unions rejected armed struggle
▪ Union de Impresores de Filipinas
▪ Federacion Obrera de la Industria Tabaquera • Hukbong Mapagpalaya ng Bayan (HMB)
de Filipinos (,,,, ANO DAW) - Aka Army of National Liberation
▪ Metropolitan Water District Workers Union - New name of the Hukbalahap
▪ Association of Oil Workers - Main emphasis was armed struggle
▪ Federacion Obrera de Filipinas (FOF) - Established six regional commands called Recos
- By Jose and Jesus Nava - Each Reco had Field Commands (FCs) and
- In Visayas People’s Security Police (PSP)
- Led to successful strikes
- Slogan: “Down with imperialism”
NATIONALIST ARTICULATION
- Claro M. Recto and Jose P. Laurel began criticizing
• Committee on Labor Organization
American policy
- To organize the unemployed
- Wanted to abrogate parity and repeal Bell Act for
- Subjected to government harrasment
failing to attract American capital to the Philippines
- HMB supported Laurel, but because of election fraud
and terrorism, Quirino won
CORRUPTION IN THE SYSTEM - Recto filed an electoral protest
- Factional politics, elite self-interest, and corruption
hindered project
- PKP underestimated US intervention and policies of
suppression
• Francisco Medrano
- A Laurel partisan
- Led a mini rebellion in Batangas to “overthrow
the imperialist puppet regime”
Chapter 9
- American goods flooded the country, draining
Philippines and international dollar reserved
- Philippines of increased strategic importance after
communist victory in China
• President Harry Truman
- US president that allowed institution of import
and exchange controls
- Reduction of importation of non-essential
consumer goods (detrimental to US interests, but
alternative was Philippine bankruptcy and seizure
by communists)
AMERICAN INSTRUMENTS FOR
INTERVENTION
• The Bell Mission
- US economic survey mission headed by Daniel W.
Bell (president of the American Security and Trust
Company)
- No further American aid until we stabilize
economy
- Blamed the Philippine government for inefficient
production
- Recommended more economic aid
• Quirino-Foster Agreement and US Special and
Technical Cooperation Agreement
- Choice of projects and allocation of funds by
Americans
- Americans to decide spending of Philippine
money
- Have to accept the advice of American overseers
• American Advisers in the Central Bank
- Licenses for foreign exchange allocations to go to
established corporations (usually American or
Chinese)
- Corporations used American processes and
brand names
• The Melby Mission
- Pentagon-State Department survey team
- To look at military equipment needs
- JUSMAG maximized funds for the army, merging
the Philippine Constabulary with the Armed
Forces (then put under the Secretary of National
Defense)
- Armed Forces of the Philippines in-charge of
counter-insurgency
- Created Battalion Combat teams and revamp of
intelligence agencies
- Goal: Remain anti-communist, pro-American,
and neutralize the internal threat of the HMB
• Ramon Magsaysay
- American choice for president
- Undoubtedly loyal to the United States
- Once a branch manager of a bus line, to
congressman, to defense secretary, to president
- Became the Liberal Party’s congressman
candidate for Zambales
- Chairman to the Committee on National Defense
- Speech defending the Ambassador Myron Cowen
- Appointed Secretary of National Defense by
Quirino
• Capt Napoleon Valeriano
- Magsaysay’s favorite commander officer during
anti-Huk campaign
• Captain Ralph McGuire
- Inducted Magsaysay into the Western Luzon
Guerilla Forces
• Col Gyles Merrill
- Appointed Magsaysay commanding officer of the
Western Luzon Guerilla Forces
- Appointed Magsaysay commanding officer of the
Zambales Military District
- Tasked Magsaysay to attend to the needs of Mrs.
Thorpe and Mrs. McGuire
• Genral Charles Hall
- Appointed Magsaysay as military governor of
Zambales
• Edward G Lansdale
- CIA operative
- Chief of the CIA’s Office of Policy Coordination in
the Philippines
- Ex chief of Army intelligence for the Western
Pacific
• Magsaysay’s Duties as National Defense Secretary
- Eliminate the HMB threat
- Forward America’s hegemonic goals in Asia
- Revitalization of the armed forces (relieving
officers, recommending officers for promotion,
etc)
- Moral and material incentives for information on
Huks (cash rewards, letter of commendation)
• Politburo Raids
 -Magsaysay met with Huk “Commander Arthur”, • Major Napoleon Valeriano
real name Taciano Rizal - Became a lieutenant colonel as a publicity ploy by
- Magsaysay informed of a female courier Magsaysay
- Caught Jose Lava (general secretary of the PKP)
• Dr Olegario Cantos - Magsaysay went to trips in combat fatigues, cap, etc
- Liberal Party chairman of Batangas (work clothes) in contrast to Quirino’s white shark-
- Negotiated Taciano Rizal’s surrender skin suits
- Shown as a stern man
- President Quirino then suspended the writ of habeas
corpus • Lt Agerico Palaypay
- Magsaysay talked to press and radio people to get - Magsaysay’s aide
their favor -> planting of false information - Pretended to be fired multiple times
▪ Rafael Yabut • Andres Soriano
▪ Far Eastern Broadcasting Company - Industrialist
- Distributed radios in Central Luzon that - Responsible for Magsaysay’s appointment as
could only hear them Chairman of the Board of the Manila Railroad and
also in the Philippine Air Lines
• Office of Psychological Affairs -> Civil Affairs Office - Offered assistance through Jesuit Father James
- Directly under Magsaysay Haggerty
- Controlled by Lansdale
- Head: Jose Crisol ELECTION SEASON
- Made anti-Huk propaganda campaigns, anti- • National Movement for Free Elections (NAMFREL)
communists forums - To ensure free and honest elections
- Subsidized the National Student Movement - Run and funded by the CIA
• National Student Movement (NASTUM) - Activities influenced by New York Lawyer Gabriel
- Student arm of the Magsaysay for President Kaplan
Movement - Active workers:
▪ Jaime Ferrer
DIRTY TRICKS ▪ Eleuterio Adevoso
- Lansdale used fear of aswangs to drive Huks away ▪ Frisco San Juan
- Production of defective ammunition to be illicitly - Got participation from
sold to the Huks ▪ Lions
- Infiltrating the enemy through disguised ▪ Rotary
- Magic Eye (Huk surrenderee who would point out ▪ Jaycees
former comrades) ▪ National Federation of Women’s Clubs
- Air Force’s bombing missions ▪ International Women’s League
▪ League of Women’s Voters
• Economic Development Corps (EDCOR) ▪ Masons
- Supposed to resettle Huk surrenderees in public ▪ Parent-Teachers Association of the
lands, until they could have the title Philippines
- Negligible effect, but good propaganda ▪ YMCA and YWCA
• Ten Centavo Telegran ▪ Philippine Government Employees
- Could send a grievance to Magsaysay for ten Association
centavos ▪ War Widows Association
- Offered free legal services by Army lawyers to ▪ Catholic Action
poor farmers ▪ Federation of Free Workers
• Contacting of Influential Sectors - Quietly got the support of the Commission on
- Lansdale contacted the Catholic hierarchy, Iglesia Elections and Philippine News Service without
ni Christo, and Chinese Community telling Quirino
- Offer by Chinese bankers, headed by Albino • Dean Acheson
Sycip, to raise funds for Magsaysay - US Secretary of State
- - Made a speech stressing American concern over
Philippine elections
• The Philippines Free Press -Eventually spoke to Nacionalista Party through
- Called Magsaysay the Modern Hercules Emmanuel Palaez
- Said he fought political terrorism - Succeeded in getting the support of Laurel, Recto,
• Complaints and NP president Eulogio Rodriguez
- Liberal chieftains Negros Occidental Governor - Continued to deceive Quirino to retain control
Rafael Lacson, Governor Gedeon Quijano, and over the Armed Forces
Speaker Eugenio Perez complained of • Emmanuel Palaez
Magsaysay’s military activisms - Law partner of Senator Lorenzo Tanada
• Senator Lorenzo Tanada
- Led to the victory of all candidates of the - President of the small Citizens Party allied with
Nacionalista party, led by Jose P. Laurel the Nacionalistas
- Quirino had to support Magsaysay for American
support, so he supported the arrest of Negros - Announced public defection to Nacionalista Party on
Governor Rafael Lacson Laurel’s birthday
- Laurel and Recto saw Magsaysay as intellectually
• Manuel “Dindo” Gonzales inferior
- President of the Manila Lions Club
- Arranged for Magsaysay to be the keynote • Magsaysay’s Extra Party Organization
speaker of the Lions International Convention in a. Political advisers
Mexico City - Emmanuel Palaez
- Brother in law of Quirino’s daughter - Dindo Gonzales
• Gen Leland Hobbs b. Financial matters
- His old mentor - Daniel Aguinaldo
- Prepared an elaborate New York reception - Ramon del Rosario
• Fordham University - Mariano del Rosario
- Asked by Jesuits to give him an honorary doctor c. Organizational work
of laws degree - Raul Manglapus
• US Army - Eleuterio Adevoso
- Awarded him the Legion of Merit, degree of - Jaime Ferrer
Commander - Manuel Manahan
• New Supporters - Benjamin Gaston
- Cebu Governor Sergio Osmena Jr - Raoul Beloso
- Nacionalista Party President Eulogio Rodriguez d. Publicity and propaganda
- Dindo Gonzales
- Corruption by Quirino’s brother Judge Antonio - Jose Crisol
Quirino eroded his prestige - Joaquin Chino Roces (Manila Times
- Needed the Philippine location more to counter the publisher)
Soviets and Chinese, the Chiang Kai-shek group e. Other inner circle members
which fled to Taiwan - Oscar Arellano
- Seventh Fleet already dispatched to Taiwan Straits - Leon Ty
- Claudio Teehankee
• Dwight Eisenhower - Juan Tan
- Newly elected US president • Magsaysay for President Movement
- Announced an expansion of operations against - Wanted him to be the nation’s candidate
communism - Patterned after the Citizens for Eisenhower Clubs
• Magsaysay’s Options - Important actors:
a. Run as Quirino’s VP, succeed him in two years a. The Lions Club by Gonzales and Eligio
(cannot serve more than 8 years max) Tavanlar
b. Run as the Liberal Party’s standard bearer b. The Jaycees by Oscar Arellano
c. Become a candidate of the Nacionalista Party c. Women’s MPM by Pacita Madrigal Williams,
- Told Antonio Quirino he wanted to be the daughter Liberal Senator Vicente Madrigal
President’s running amte d. Student Councils Association by UP law
student Rafael Salas
 e. NAMFREL - From tenancy to leasehold
f. Citizens Committee for Good Government - Prohibiting unjust ejection of tenants
g. Catholic hierarchy • An act creating the Court of Agrarian Relations
h. Iglesia ni Kristo • Land Reform Act of 1955
• Manuel Nieto
- Magsaysay’s aide • Presidential Complaints and Actions Committee
- Grew a mustache like Lansdales for publicity - Headed by Manuel Manahan
• Three Presidential Candidates • Liberty Wells Association
1. Magsaysay - Arrangement with Chinese bankers
2. QUirino - Creation of potable water for the barrios
3. Carlos P. Romulo • Presidential Assistant for Community Development
• Carlos P. Romulo (PACD)
- Backed by sugar bloc (1 peso for every 1 dollar) - CIA project by Gabe Kaplan
- Resigned as Ambassador to the United States and - Leaders would select a leader for the barrio, aid
head of the Philippine Mission to the United in his election
Nations to run under Liberal Parrty • Jaime Ferrer
- Running mate: Vice-president Fernando Lopez - Undersecretary of Agriculture and Natural
- Eventually formed a coalition with Nacionalistas Resources
- Became campaign manager of Magsaysay - Proposed the Community Development Council,
- Would get his old posts back. which lost to the PACD
• Bureau of Agricultural Extension
- Magsaysay became the man of the masses - Created
- Quirino afflicted with bursitis, stomach ulcers, could - Barrio councils for farmers
hardly campaign - Rural Improvement Clubs for women
- Magsaysay won by a landslide - 4-H clubs for children
• Bureau of Public Schools
• Operations Brotherhood - Created neighborhood self-help associations
- By Oscar Arellano • Social Welfare Administration
- Assisted in the relocation of Vietnamese - Organized Volunteer Corps
- Vietnamese might accept Filipinos more than - Organized Self-Help Centers (for women’s
Americans cottage industries)
• Freedom Company • Private Organizations
- Helped set up the Vietnamese American- a. Philippine Rural Reconstruction Movement
influenced Ngo Dinh Diem movement (PRRM)
- Headed by Frisco San Juan, organizer of b. Philippine Rural Community Improvement
NAMFREL Society (PRUCIS)
• Teddy de los Santos c. National Citizens’ Movement for Free Elections
- Press support for Magsaysay’s programs (NAMFREL)
- NAMFREL leader in Cebu • New/Reorganized Government Institutions
- Reprinted Digest of the Provincial Press a. National Resettlement and Rehabilitation
• Mutual Security Agency (now Agency for Corporation (NARRA)
International Development) b. EDCOR
- Asked Robert Hardie to study Philippine tenancy c. Agricultural Credit and Cooperative Financing
problem Administration (ACCFA)
- “Agrarian reform as the answer to the communist d. Farmers Cooperative Marketing Associations
threat” (FACOMAS)
- For the abolition of tenancy e. Land Tenure Administration
- Needed to reduce peasant unrest and Huk threat - Implemented the Land Reform Act of 1995

MAGSAYSAY’S LAND REFORM • Jesus Lava

• Agricultural Tenancy Act - Led the Communist Party
- Undercut landlord’s power - Continued the struggle despite the programs

Chapter 10
- From confronting socialist states to curbing national
liberation struggles
- Philippines as counter-insurgency model
- Growing assertiveness of growing domestic forces
- Protectionism as liberation for local business from
the control of alien businesses
• Claro M Recto
- Leading articulator of nationalist dissent
- Many followers just loyalists (Rectistas) or those
with economic self-interests
- Became the lawyer of Jose Lava
- Main ideas:
▪ “Cannot rely on the US for defense”
▪ Nacionalista victory -> more American aid
▪ Too economically dependent because of
free trade
▪ We are poor because we are stuck in an
agrarian economy
▪ Opposed the Japanese Peace Treaty -> not
approved
▪ Opposed US bases
- Eventually won his election protest
• Declarations by President Truman and Secretary of
State Acheson
- Defense not binding until put in the treaty
• Carlos Romulo
- Said independent foreign policy not feasible
• US-UK Preliminary Joint Draft Treaty
- By John Foster Dulles
- Would actually sacrifice the interests of victim-
nations in exchange for protection from Japan
• Leon Ma Guerrero
- Undersecretary of Foreign Affairs
- “Asia for the Asians” speech
- Supported by Recto
• Carlos P Garcia
- Secretary of Foreign Affairs
- Supported Guerrero
• Minister William Lacy
- From US Embassy
- Approved the statement disowning “Asia for the
Asians”
- Philippines should only seek relations with
freedom-loving Asian countries, not communists
RECTO’S CONFRONTATIONS
• Opposition to military and naval bases
- Opposed American claim to ownership over
bases
- Based on opinion by US Attorney-General
Herbert Brownell, Jr
- Countered Ambassador Raymond Spruance’s
claim to the bases
• Philippine Independence Act
- Recto said when we became sovereign, we go the
title to those bases
- Recto urged a Legal Declaration of Independence
• IndoChina
- Americans wanted the Philippines to send troops
to Vietnman
- Opposed by Recto because it was a “civil war”
- US began mobilizing forces after Viet Minh
victory over French Dien Bien Phu forces
• Charles Wilson
- US Defense Secretary
- Suggested to revise Article IV
- Would rather have Article V of North Atlantic
Treaty (automatic armed retaliation)
• Southeast Asia Collective Defense Treaty
- To guarantee the South Vietnam, Cambodia, and
Laos would stay in the “free world”
- Members:
- Philippines
- Thailand
- USA
- Britain
- France
- Australia
- New Zealand
- Pakistan
- Magsaysay recognized South Vietnam
• Col Jose Banzon
- Handcarried to Saigon Magsaysay’s letter
addressing the Ngo Dinh Diem
- Philippine observer in South Vietnam
• Ngo Dinh Diem
- Supported by Undersec of Foreign Affairs Raul
Manglapus and Senator Emmanuel Pelaez
- Claimed to have the support of Vietnamese
• United States-Formosa Mutual Security Pact
- Magsaysay committed us to defending Formosa
- Indirect declaration of war against communist
China
RECTO UP FOR RE-ELECTION
- Recto saying he would not support Magsaysay
- Said the People’s Republic of China should be part of
the United Nations
• Laurel-Langley Agreement
- Philippine economic mission to the US
 -Revision of the trade agreement
-Led by Senator Jose P. Laurel
-Members were Senators Puyat, Parades, and
Tanada
- Romulo as Magsaysay’s personal envoy, signed
the agreement
- Arrangement with James Langley
- Conclusions:
- Open the entire economy and natural
resources to domination by US corporations
- Industrialization through direct US
investments -> doom local infant industries
• US Foreign Operations Administration
- “True sire” of the new agreement
• Foreign Investments Bill
- Proposed by Magsaysay
- By Senator Edmundo Cea
• Malacanang Version of Foreign Investments Bill
- Supported by Americans
- Sponsored by Senators Puyat and Pelaez
- Would guarantee foreign investors guarantees
against losses
- Recto as guest candidate and only winner of the
Liberal party slate
• Chruch Against Recto Campaign
- Wanted its own Francisco Rodrigo
- Past Catholic leaders turned politicians
a. Pastor Endencia as Secretary of Education
- Recommended by Archbishop Rufino
Santos
b. Gregorio Hernandez as next secretary
• Rizal Bill
- By Recto
- Wanted to make Noli and El Fili compulsory
reading in all universities and colleges
- Opposed by catholic hierarchy in the senate
▪ Decoroso Rosales, brother of Archbishop
Rosales
▪ Mariano Cuenco, brother of Archbishop
Cuenco
▪ Francisco Rodrigo, ex president of Catholic
Action
- Fr Jesus Cavanna said the novels belonged to the
past and were attacks on the clergy
- Radio commentator Jesus Paredes questioned
the reading matter
- Radio commentator Narciso Pimentel Jr said it
was just Recto’s revenge vs Catholic voters
• Nationalization of Schools
- Proposed by Recto
• Bishop Manuel Yap
- Told the Philippine News Service that those who
voted for Recto would be punished in next
election
• Substitue measure
- By Senator Roseller Lim and Emmanuel Pelaez
- Unexpurged editions of the text in schools, but
students could be exempted on grounds of
religious belief
• Nationalist-Citizens Party or Lapiang Makabansa
- New party of Recto and runningmate Senator
Lorenzo Tanada
- President Magsaysay died in an airplane crash
- New opponents became:
1. New President Carlos P. Garcia (Nacionalista)
2. Jose Yulo (LP)
- Supported by the CIA along with his
runningmate Diosdado Macapagal
3. Manuel Manahan (Progressive Party of the
Philippines)
- Garcia won the presidency, Macapagal as Vice, Recto
a poor 4th place
- Freedom Company in Vietnam -> Eastern
Construction Company
Chapter 10
• Carlos P Garcia
- New president
- Nationalist conviction
- Wanted Recto back in Nacionalista party
• Congressman Bartolome Cabangbang
- Garcia’s inner circle
- Had meetings with Recto
- Recto wanted re-election of Lorenzo Tanada
- Opposed Garcia’s allowing of US missile launching
sites
- Supported Garcia’s move to establish multiple
foreign exchange reserves
• Filipino First Policy
- Under Garcia administration
- By National Economic council
- Preferential treatment for Filipinos in foreign
exchange allocations, Filipino enterprises, and
joint-venture enterprises
- Also Filipinos controlling Filipino education
• Filipino Chamber of Commerce
- Resigned from the International Chamber of
Commerce, who opposed its new policies
• The Producers and Exporters Association
- Urged Filipino First in natural resources
• American Chamber of Commerce
- Editor Hartendorp: Policy would destroy existing
industries in exchange for “projected’ ones
• Congressman Bartolome Cabangbang
- Congressman from Bicol, Garcia’s province
- Said there was a plan for a coup d’etat
- Publicized a supposed campaign to brand Garcia
as a communist to build up Defense Secretary
Jesus Vargas
- Hurt his credibility
• Allegations
- Allegedly involved Col Nicanor Jimenez filed a
libel suit
- Secretary Vargas and Chief of Staff General
Alfonso Arellano reigned
• National Progress Movement
- Garcia’s own political organization
- Nationalist Manifesto
▪ Full implementation of Filipino First policy
▪ Abrogation of parity
▪ Filipinization of educational system
▪ Independent foreign policy
▪ Close ties with Asian countries
▪ Filipinization of major public utility industries
▪ Nationalist program
- Focused in Central and Southern Luzon
- Effectiveness ended when branded as
Communist by Manila Mayor Arsenio Lacson and
Congressman Ramon Bagatsing
• Liberal Party and the CIA
- Jaime Ferrer assisted CIA operative Joseph Smith
to negotiate between Progressives and
Macapagal
- Smith’s book Portrait of a Cold Warrior said this
was ironic because Macapagal objected
American intervention in the past
• The Grand Alliance
- Coalition between progressives, Nacionalistas,
and Liberals
- Progressives:
1. Manahan
2. Manglapus
3. Vargas
- Nacionalista:
1. Pelaez
- Liberals:
1. Narcisco Pimentel Jr
2. Osmundo Mondonedo
- All candidates lost
- With the LP, against the Filipino First Policy
- President Garcia could greatly lose the election (it
was Liberal Ferdinand Marcos who topped elections,
and Garcia’s man Juan Pajo was defeated)
- Garcia’s policies had to retreat, said there was “room
for foreign capital in the economy”
• Diosdado Macapagal
- Then vice president
- Had American support
- Restore “free enterprise”
a. Lifted exchange controls
b. No longer needed import licenses
c. Supported by the International Monetary
Fund, the World Bank, and the US State and
Treasury Departments
• Emmanuel Pelaez
- Vice president
• Agency for International Development, Export-
Import Bank
- Promised the Philippines new loans
• President John F Kennedy
- Said the American government would fully
support the free enterprise program
• Filipino Capitalists
- Began supporting Recto’s nationalist views and
Garcia’s Filipino First policy to protect interests
- Garcia already made industrialization a national
goal
- Formed an integrated steel assembly
• American Industries in the Philippines
- Trend still towards packaging and assembly
dependent on American items
- Set-up local subsidiaries, licensees, and branches
BEGINNING OF DECONTROL
- Gradual “controlled” decontrol
- Depressed the living standards, wiped out infant
industries, caused rapid devaluation and inflation
- Filipino businesses deprived of scarce credit
resources and protection of enterprise
- Even processes of raw materials over imports
required large initial capital
• FilOil Corporation
- Initially set up by Filipino entrepreneurs
- Went bankrupt
- Taken over by US Gulf Oil Company
• Program Implementation Agency
- Magsaysay’s top economic planners
 - Said nationalism should be a minor factor
• Illusion of Philippine Sovereignty
- Macapagal moved independence date from July
4 to June 12
• Legislative Message on Tenancy Abolition and Other
Land Reforms
- By Macapagal
- Land reforms to maximize agricultural
productivity
- Still had legal loopholes favorable to tenants
- Lands producing for export exempted
- Fishponds, saltbeds exempted
- Exempted land converted into residential,
commercial, or non-agricultural industrial
purposes
SUMMARY
• US Post War policy
- Keep Philippine economy under the capitalist
system and dependent on the American
economy
- Liberation became re-occupation
- Colony into neocolony
• Socialist bloc
- Answered by better equipped AFP, reorganized
under JUSMAG
• Philippine Politics Influenced by the USA
- Strove for “clean elections”
- American choice Magsaysay won
- Created stable internal situation favorable to
American corporations
• American Corporations in the Philippines
- Operated through cheap labor
- Reoriented labor organizations from political
unionism to economic unionism
- Made unions concerned only with their
employers and not the system
• Mutual Security Agency (later International
Cooperation Administration)
- Focused on reorienting labor unions
- Sent trainees to US labor institutes
- Established Institute of Social Order in ADMU
- Established Asian Labor Education Center in UP
- Father Walter Hogan SJ for the Federation of Free
Workers and Federation of Free Farmers
- Improvement of peasant conditions -> less Huk
strength -> higher productivity -> more capital
- US educated landlords of capitalist ways
- Americans used joint-venture arrangements,
especially in Mindanao
▪ Rubber Industry
- Firestone Tire and Rubber Co
- B.F. Goodrich Philippines
- Goodyear Tire and Rubber
▪ Timber Industry
- Weyerhauser Corp
- Boise-Cacade Corp
- Georgia-Pacific Corp
- Paper Industries Corporation of the
Philippines
- Insular Lumber Co
- Findlay Miller Timber Company
▪ Fruit industry
- Philippine Packing Corporation
- Dole Philippines
• Philpak
- Overseas subsidieary of Del Monte (then
California Packing Corporation)
- Pineapple plantation in Bukidnon
- 25 year contract with National Development
Commission
- Renewed contract again for 25 years
- Conditions favorable to corporation
• Dolefil
- Went to the Philippines after rising land and labor
costs in Hawaii
- Clause: “Buy and obtain title as needed”
• Rehabilitation Aid
- Introduction of aid to Philippines still benefitted
American corporations and American citizens
whose investments had been harmed in the war
- Surplus war materials bought by Americans in the
Philippines
• Developmental Aid
- Quirino Foster Agreement on Economic and
Technical Cooperation
- American Special Technical Mission would
oversee all projects, control Philippine money
• Benefits for Americans
- Almost all technicians Americans
- Commodities prescribed were manufactured in
the US
• Food for Peace (US Public Law 480)
- US Agricultural Trade Development and
Assistance Act
- Excess US agricultural products sold to us, paid n
local currency
- Creation of new markets for American
agricultural products
- American-based Voluntary Relief Agencies would
receive surplus commodities for free, and
redistribute them to rural schoolchildren
- Cooperative of American Relief Everywhere
(CARE)
- Catholic Relief Services
 - Church World Service • Political Nationalism
- Seventh-Day Adventist Welfare Service - Rejecting intervention by foreign governments
- United Nations Children’s Fund (UNICEF)
• Industrial Development Center (IDC) - Central nationalism should then be anti-imperialist
- Project of the International Cooperation
Administration and the Philippine National - But real independence cannot be attained without
Economic Council the involvement of the masses and social liberation
- Provided technical, managerial, and financial
support to local industries • Mass Nationalism
- Supported the Industrial Guarantee Loan Fund, - To establish the unity of all anti-imperialist forces
which was biased towards American investors - Concentrate all efforts on the social struggle for
• Scholarships and Grants quality, progress, and freedom for all citizens
- Kennedy administration sent Peace Corps to give - Do away with all forms of oppression and
technical assistance exploitation
- Scholars sent to US to learn “Americanized way of - Struggle against a system which chains the
life” peoples of the Third World to a life of poverty,
- Trained AFP personnel in US ignorance, and underdevelopment
- Public Safety Program trained local police forces •
for counter-insurgency purposes
• Multilateral aid
- Aid no longer direct, but from multilateral
financial institutions (IMF, WB, etc) formed durin
the Bretton Woods Conference
• International Monetary Fund (IMF)
- Fostered free flow of commodities within
capitalist world by managing currencies
• World Bank
- Gave loans to attract foreign investments

• New Momentum of Nationalism

- By Claro M Recto
- Responses to nationalism stated in George
Taylor’s book The Philippines and the United
States: Problems of Partnership
• Lapiang Manggagawa and the Socialist Party
- By the labor sector
• Malayang Samahan ng Magsasaja
- By the peasantry
• Kabataang Makabayan
- By the students

- America ready to accept Philippine Social-Democrats

and Christian Socialists as long as socialism was
democratic in theory and practice
- Built Philippine military to fight communism in Asia
- Nationalism evolved from wishing for political
independence, to fighting against the predatory
activities of transnational corporations.
- Nationalism now meant being anti-imperialist.

• Cultural Nationalism
- Interest in pre-colonial history and society
- Assertion of racial worth