Policies and Programs of Philippine Presidents

Policies and Programs of Philippine PresidentsSergio OsmenaManuel RoxasElpidio QuirinoRamon MagsaysayCarlos. GarciaDiosdado P. MacapagalFerdinand Marcos

Sergio OsmenaSecond President of the CommonwealthTerm: August 1, 1944- May 27, 1946Filipino statesman, founder of the Nationalist Party (Partido Nacionalista) and President of the Philippines from 1944 to 1946.

Foreign PoliciesUnited Nations CharterPresident Osmea sent the Philippine delegation, which was headed byCarlos P. Romulo, to the San Francisco gathering for the promulgation of theCharter of the United Nationson 26 June 1945. Other members of the delegation were Maximo Kalaw,Carlos P. Garcia, Pedro Lopez, Francisco Delegado, Urbano Zafra, Alejandro Melchor, and Vicente Sinco. The 28th signatory nation of the United Nations, the Philippines was one of the fifty-one nations that drafted the UN Charter. Once approved by Philippine delegation, the UN Charter was ratified by the Congress of the Philippines and deposited with the U.S State Department on 11 October 1945.

Foreign PoliciesForeign Relations OfficeTo prepare for the forthcoming independent status of the Philippine, President Osmea created the Office of Foreign Relations.Vicente Sinco was appointed as its first Commissioner, with cabinet rank. In this connection, President Osmea also entered into an agreement with theUnited States Governmentto send five Filipino trainees to the U.S. State Department to prepare themselves for diplomatic service. They were sent by U.S. State Department to the United States embassies in Moscow andMexico Cityand consulates inSaigonandSingapore.

Foreign PoliciesInternational bankingOn 5 December 1945, President Osmea appointed Resident CommissionerCarlos P. Romuloas his representative to accept Philippine membership in theInternational Monetary Fundand in the International Bank for Reconstruction and Development, which bodies had been conceived in the Bretton Woods Agreement, in which the Philippine had also taken part. Romulo signed said membership on 27 December 1945 on behalf of the Philippines.

Foreign PoliciesBell Trade ActOn 30 April 1946, theUnited States Congress, at last approved theBell Act, which as early as 20 January had been reported to the Ways and Means Committee of the lower house, having been already passed by the Senate. President Osmea and Resident Commissioner Ramulo had urged the passage of this bill, with United States High Commissioner,Paul V. McNutt, exerting similar pressure.The Act gave thePhilippineseight years of free trade with the United States, then twenty years during whichtariffswould be upped gradually until they were in line with the rest of the American tariff policy. The law also fixed some quotas for certain products: sugar 850,000 long tons;cordage 6,000,000 pounds;coconut oil 200,000 long tons; cigars 200,000,000 pounds.

Foreign PoliciesBell Trade ActThe great aid this legislation meant for thePhilippineswas coupled with that to be obtained from the recently passed Tydings Damage bill, which provided some nine hundred million dollars for payment of war damages, of which one million had been earmarked to compensate for church losses. The sum of two hundred and forty million dollars was to be periodically allocated by the United States President as a manifestation of good will to theFilipinopeople. Additionally, sixty million pieces of surplus property were also transferred to thePhilippine Government.

Manuel Acua RoxasLast President of the CommonwealthTerm: May 28, 1946- July 4, 1946First President of the Third Republic of the PhilippinesTerm: July 4, 1946- April 15, 1948Political leader and first president of the independence republic of the Philippines.

Foreign PoliciesTreaty of General RelationsOn August 5, 1946, theCongress of the Philippinesratified the Treaty of General Relations that had been entered into by and between theRepublic of the Philippinesand the United States on July 4, 1946.Aside from withdrawing her sovereignty from the Philippines and recognizing her independence, the Treaty reserved for the United States some bases for the mutual protection of both countries; consented that the United States represent the Philippines in countries where the latter had not yet established diplomatic representation; made the Philippines assume all debts and obligations of the former government in the Philippines; and provided for the settlement of property rights of the citizens of both countries.

Foreign PoliciesUnited States Military BasesAlthough Roxas was successful in getting rehabilitation funds from the United States after independence, he was forced to concede military bases (23 of which were leased for 99 years), trade restriction for the Philippine citizens, and special privileges for U.S. property owner and investor.

Foreign PoliciesParity Rights AmendmentOn March 11, 1947, the Filipino people, heeding Roxas' persuasive harangue, ratified in a nationwide plebiscite the "parity amendment" to the1935 Constitution, granting United States citizens the right to dispose and utilize of Philippine natural resources, or through parity rights. The night before the plebiscite day, Roxas narrowly escaped an assassination by a disgruntledTondobarber, Julio Guillen, who hurled agrenadeon the platform atPlaza Mirandaimmediately after the President addressed the rally of citizens.

Elpidio QuirinoSecond President, Third Republic of the PhilippinesTerm: April 17, 1948- November 10, 1953Political leader and second president of the Independence Republic of the Philippines.

Foreign PoliciesIn 1950, at the onset of theKorean War, Quirino authorized the deployment of over 7,450 Filipino soldiers to Korea, under the designation of thePhilippine Expeditionary Forces to Korea or PEFTOK.

Foreign PoliciesQuirino-Foster AgreementBy the time of the creation of the integrity board, moreover, the Bell Mission, led by Daniel W. Bell, an American banker, and composed of five members, with a staff of twenty workers, following their period of stay in thePhilippines, beginning in July 1950, finally submitted its report on October of the same year.

Foreign PoliciesQuirino-Foster AgreementThe Report made several proposals, most noteworthy, of which were that the United States should give the Philippines 250,000,000 dollars over a period of five years, but the Philippines, in return, ought to reform its tax structure, enact a minimum wage law for agricultural and industrial labor, initiate social and land reforms, as well as a sound planning for economic development, For all the strong language of the Report, which, in some quarters merited bitter opposition, President Quirino gamely and patriotically, took in the recommendations and sought to implement them.

Foreign PoliciesQuirino-Foster AgreementThus in November 1950, President Quirino and William Foster, representing theUnited States Government, signed an agreement by virtue of which the former pledged to obtain the necessary Philippine legislation, in keeping with the Bell Mission Report, while envoy Foster promised the necessary by the same Report.

Foreign PoliciesHowever, much as he tried to become a good president, Quirino failed to win the people's affection. Several factors caused the unpopularity of his administration, namely:Economic distress of the times, aggravated by rising unemployment rate, soaring prices of commodities, and unfavorable balance of trade. Quirino's vaunted "Total Economic Mobilization Policy" failed to give economic relief to the suffering nation.Frauds and terrorism committed by theLiberal Partymoguls in the1947,1949and1951 elections.

Ramon del Fierro MagsaysayThird President of the Third Republic of the PhilippinesTerm: December 30, 1953- March 17, 1957Best known for successfully defeating the communist led Hukbalahap (Huk) Movement. Idol of the masses, champion of democracy, and freedom fighter.

Foreign PoliciesSEATOThe administration of President Magsaysay was active in the fight against the expansion of communism in the Asian region. He made the Philippines a member of the Southeast Asia Treaty Organization (SEATO), which was established in Manila on Sept. 8, 1954 during the "Manila Conference". Members of SEATO were alarmed at the possible victory of North Vietnam over South Vietnam, which could spread communist ideology to other countries in the region. The possibility that a communist state can influence or cause other countries to adopt the same system of government is called the domino theory.

Foreign PoliciesSEATOThe active coordination of the Magsaysay administration with the Japanese government led to the Reparation Agreement. This was an agreement between the two countries, obligating the Japanese government to pay $800 million as reparation for war damages in the Philippines.

Foreign PoliciesDefense CouncilTaking the advantage of the presence of U.S. Secretary John Foster Dulles in Manila to attend the SEATO Conference, the Philippine government took steps to broach with him the establishment of a Joint Defense Council. Vice-President and Secretary of Foreign Affairs Carlos P. Garcia held the opportune conversations with Secretary Dulles for this purpose. Agreement was reached thereon and the first meeting of the Joint United States-Philippines Defense Council was held in Manila following the end of the Manila Conference. Thus were the terms of the Mutual Defense Pact between the Philippines and the United States duly implemented.

Foreign PoliciesLaurel- Langey AgreementThe Magsaysay administration negotiated the Laurel-Langley Agreement which was a trade agreement between the Philippines and the United States which was signed in 1955 and expired in 1974. Although it proved deficient, the final agreement satisfied nearly all of the diverse Filipino economic interests. While some have seen the Laurel-Langley agreement as a continuation of the 1946 trade act, Jose P. Laurel and other Philippine leaders recognized that the agreement substantially gave the country greater freedom to industrialize while continuing to receive privileged access to US markets.The agreement replaced the unpopular Bell Trade Act, which tied the economy of the Philippines to that of United States economy.

Foreign PoliciesBandung ConferenceBilled as an all Oriental meet and threatening to become a propaganda springboard for Communism, a Conference was held in Bandung (Java) in April 1955, upon invitation extended by the Prime Ministers of India, Pakistan, Burma, Ceylon, and Indonesia. Although, at first, the Magsaysay Government seemed reluctant to send any delegation, later, however, upon advise of Ambassador Carlos P. Romulo, it was decided to have the Philippines participate in the conference. Ambassador Romulo was asked to head the Philippine delegation. At the very outset indications were to the effect that the conference would promote the cause of neutralism as a third position in the current cold war between the democratic bloc and the communist group. John Kotelawala, Prime Minister of Ceylon, however, broke the ice against neutralism. He was immediately joined by Philippine envoy Romulo, who categorically states that his delegation believed that "a puppet is a puppet", no matter whether under a Western Power or an Oriental state.

Foreign PoliciesReparations agreementOn August 12, 1955, President Magsaysay informed the Japanese government, through Prime Minister Ichiro Hatoyama, that the Philippines accepted the Neri-Takazaki agreement. In view of political developments in Japan, the Japanese Prime Minister could only inform the Philippine government of the Japanese acceptance of said agreement on March 15, 1956. The official Reparations agreement between the two government was finally signed at Malacaan Palace on May 9, 1956, thus bringing to a rather satisfactory conclusion this long drawn controversy between the two countries.

Carlos Polestico GarciaFourth President of the Third Republic of the PhilippinesTerm: March 18, 1957- December 30, 1961Famous for his austerity program and policy. He maintained the strong tradition ties with the United States and sought closer relation with non-communist Asian countries.

Domestic PoliciesFilipino First PolicyPresident Garca exercised theFilipino First Policy, for which he was known. This policy heavily favored Filipino businessmen over foreign investors. He was also responsible for changes in retail trade which greatly affected the Chinese businessmen in the country. In a speech during a joint session of the Senate and the House of Representatives on September 18, 1946, President Garcia said the following:We are called upon to decide on this momentous debate whether or not this land of ours will remain the cradle and grave, the womb and tomb of our race the only place where we can build our homes, our temples, and our altars and where we erect the castles of our racial hopes, dreams and traditions and where we establish the warehouse of our happiness and prosperity, of our joys and sorrows

Domestic PoliciesAusterity ProgramIn the face of the trying conditions of the country, President Garca initiated what has been called "The Austerity Program". Garca's administration was characterized by its austerity program and its insistence on a comprehensive nationalist policy. On March 3, 1960, he affirmed the need for complete economic freedom and added that the government no longer would tolerate the dominance of foreign interests (especially American) in the national economy. He promised to shake off "the yoke of alien domination in business, trade, commerce and industry." Garca was also credited with his role in reviving Filipino cultural arts.

Foreign PoliciesAt the time of the sudden death of President Ramon Magsaysay, Vice President and Foreign Affairs Secretary Carlos P. Garca was heading the Philippine delegation to the SEATO conference then being held at Canberra, Australia. Having been immediately notified of the tragedy, Vice President Garca enplaned back for Manila. Upon his arrival he directly repaired to Malacaan Palace to assume the duties of President. Chief Justice Ricardo Paras, of the Supreme Court, was at hand to administer the oath of office. President Garca's first actuations dealt with the declaration of a period of mourning for the whole nation and the burial ceremonies for the late Chief-Executive Magsaysay.

Foreign PolicyBohlenSerranohis administration, he acted on the BohlenSerrano Agreement which shortened the lease of the US Bases from 99 years to 25 years and made it renewable after every five years.

Domestic PoliciesAusterity ProgramThe main points of the Austerity Program were:The government would tighten up its controls to prevent abuses in the over shipment of exports under license and in under-pricing as well.There would be a more rigid enforcement of the existing regulations on barter shipments.Government imports themselves were to be restricted to essential items.The government also would reduce rice imports to a minimum.An overhauling of the local transportation system would be attempted so as to reduce the importation of gasoline and spare parts.The tax system would be revised so as to attain more equitable distribution of the payment-burden and achieve more effective collection from those with ability to pay.There would be an intensification of food production.The program was hailed by the people at large and confidence was expressed that the measures proposed would help solve the standing problems of the Republic.

Diosdado MacapagalFifth President of the Third Republic of the PhilippinesTerm: December 30, 1961 - December 30, 1965Poet, politician, lawyer, diplomat, statesman, economist and intellectual.Best known as the "Champion of the Common Man."

Foreign PoliciesSabah ClaimOn September 12, 1962, during President Diosdado Macapagal's administration, the territory ofNorth Borneo, and the full sovereignty, title and dominion over the territory were ceded by the then reigning Sultan of Sulu, HM Sultan Muhammad Esmail E. Kiram I, to theRepublic of the Philippines.The cession effectively gave the Philippine government the full authority to pursue their claim in international courts. ThePhilippinesbroke diplomatic relations with Malaysia after the federation had included Sabah in 1963.It was revoked in 1989 because succeeding Philippine administrations have placed the claim in the back burner in the interest of pursuing cordial economic and security relations withKuala Lumpur. To date, Malaysia continues to consistently reject Philippine calls to resolve the matter of Sabah's jurisdiction to theInternational Court of Justice. Sabah sees the claim made by the Philippines' Moro leader Nur Misuari to take Sabah to International Court of Justice (ICJ) as a non-issue and thus dismissed the claim.

Foreign PoliciesMaphilindoMaphilindo was described as a regional association that would approach issues of common concern in the spirit of consensus. However, it was also perceived as a tactic on the parts ofJakartaandManilato delay, or even prevent, the formation of theFederation of Malaysia. Manila had its own claim toSabah(formerlyBritish North Borneo),and Jakarta protested the formation of Malaysia as a British imperialist plot. The plan failed whenSukarnoadopted his plan ofkonfrontasiwith Malaysia. The Konfrontasi, or Confrontation basically aims at preventing Malaysia to attain independence. The idea was inspired onto President Sukarno by the Partai Komunis Indonesia (PKI), or literally the Indonesian Communist Party. The party convinced President Sukarno that the Formation of Malaysia is a form of neo-colonization and will later affect tranquility in Indonesia. The subsequent development ofASEANalmost certainly excludes any possibility of the project ever being revived.

33

Foreign PoliciesVietnam WarBefore the end of his term in 1965, President Diosdado Macapagal persuadedCongressto send troops toSouth Vietnam. However this proposal was blocked by the opposition led bySenate PresidentFerdinand Marcoswho deserted Macapagal'sLiberal Partyand defected to theNacionalista Party.

Ferdinand Emmanuel Edralin Marcos, Sr.AFilipinolawyer and politician who served as President of the Philippines from 1965 to 1986. He ruled undermartial lawfrom 1972 until 1981. Marcos took his oath of office on June 30, 1981 at the Luneta Park, he announced the establishment of a "New Republic of the Philippines".

35

Foreign PoliciesRelation with Communist State in AsiaPresident Marcos announced to the Filipino people his policy of establishing relations with communist countries such as the People's Republic of Chine (June 9, 1975) and the Soviet Union (June 2, 1976).

Relations with the United States was modified. It was no longer based on the "sentemental ties" but on mutual respect for each other's national interest. Thus, the military and economic agreements between U.S. and the Philippines were amended to reflect this new relationship. In the amendments to the RP-U.S. Military Bases Agreement of 1947, the U.S. acknowledged the sovereignty of the Philippines over the American military bases in the country (Subic and Clark). These bases would have a Filipino commander and would fly the Philippine flag. IN addition, the U.S agreed to pay rentals to the Philippines for the use of the bases.

36

Foreign PoliciesMarcos established closer ties with the Asian countries. The Philippines became a leading member of the Third-World the collective name for the developing countries at that time.

Joining International Organizations.The Philippines actively participated in such world conferences as the United Nations Conference on Trade and Development (UNCTAD) meeting held in Nairobi, Kenya, in 1976 and in the International Meeting on "Cooperation and Development held by the heads of 21 nations in Cancun, Mexico, in 1981.

First term (19651969)Vietnam WarTo the surprise of many, soon after becoming president, Marcos wanted the Philippines to become involved in theVietnam War. He asked Congress to approve sending acombat engineer unit to South Vietnam. When the previous Philippine president, Macapagal, suggested in 19641965 to send troops it had been Marcos who had led the opposition against this plan on both legal and moral grounds. Congressional approval and Philippine troops were sent from the middle of 1966 as the Philippines Civic Action Group (PHILCAG), PHILCAG reached a strength of some 1,600 troops in 1968 and between 1966 and 1970 over 10,000 Filipino soldiers served in South Vietnam

Second term (19691972)First Quarter Storm1970 was a period of leftist unrest in the Philippines, composed of a series of heavy demonstrations, protests, and marches against the government from January to March 1970, or the first quarter of 1970. It was one of the factors leading to the declaration of Martial Law in 1972.From the declaration of martial law in 1972 until 1983 :the U.S. government provided $2.5 billion in bilateral military and economic aid to the Marcos regime, and about $5.5 billion through multilateral institutions such as theWorld Bank.

Foreign investment was encouraged: an export-processing zone was opened; a range of additional investment incentives was created, and the Philippines projected itself onto the world economy as a country of low wages and industrial peace. The inflow of international capital increased dramatically.To finance the boom, the government extensively resorted to international debt, hence the characterization of the economy of the Marcos era as "debt driven."

By 1976 the Philippines was among the top 100 recipients of loans from the World Bank and was considered a "country of concentration." Its balance of payments problem was solved and growth facilitated, at least temporarily, but at the cost of having to service an external debt that rose from US$2.3 billion in 1970 to more than US$17.2 billion in 1980.

There were internal problems as well, particularly in respect of the increasingly visible mismanagement of crony enterprises. A financial scandal in January 1981 in which a businessman fled the country with debts of an estimated P700 million required massive amounts of emergency loans from the Central Bank of the Philippines and other government-owned financial institutions to some eighty firms. The growth rate of GNP fell dramatically, and from then the economic ills of the Philippines proliferated.

In 1980 there was an abrupt change in economic policy:The Philippine government agreeing to reduce the average level and dispersion of tariff rates and to eliminate most quantitative restrictions on trade, in exchange for a US$200 million structural adjustment loan from the World Bank. Exports did not increase substantially, while imports increased dramatically. The result was growing debt-service payments; emergency loans were forthcoming, but the hemorrhaging did not cease.

43

Prepared by:Ma. Lourdes BuracBPS III-1End of the Presentation