Letters and Memorandum
of
His Excellency Sergio Osmeña
President of the Philippines
To the High
Commissioner to the Philippines and the
Heads of
Various Government Departments and Agencies
[Released Immediately on October 26, 1945]
The President has sent the following letters and memorandum to the
High Commissioner to the Philippines and the heads of various Government
departments and agencies, recommending specific steps to carry out the
United States program of assistance to the Philippines:
To the High Commissioner to the Philippines:
In the provinces near Manila thousands of share croppers organized
some years ago to demand a more equitable division of the product of their
labor. For several years there was no effective solution of the problem.
During the war the tenants organized a guerrilla army which reportedly did
good work against the enemy. After the enemy was defeated in their
localities, they did not disband and today they constitute a special problem
which threatens the stability of government. On the other hand, their
legitimate claim to fair treatment and the assistance they rendered in
resistance to the enemy require that they be not dealt with in a ruthless
manner.
I therefore request you to order a prompt investigation of agrarian
unrest in the Philippines with the cooperation of the Commonwealth
Government, and to recommend the remedies or reforms which ought to be taken
by the Commonwealth government and by the United States Government.
To the Alien Property Custodian:
The United States Army has found and taken custody of considerable
valuable property belonging to enemy nationals in the Philippines. Enemy
property includes agricultural leaseholds held through “dummies”. It is
desirable that all property in which the enemy has or had interest should
pass under the civil control of the United States government which is
responsible for its custody under the usually accepted terms of
international law.
I therefore direct that the Alien Property Custodian vest title in
all enemy property in the Philippines and make lawful disposition of it.
Should these operations extend beyond the date of independence, I shall,
endeavor to arrange by treaty, or otherwise, for the completion of the
processes of vesting and liquidation.
To the Attorney General:
While the mass of the Filipino people and many of their leaders
remained staunchly loyal during invasion and rendered invaluable assistance
to our arms, it is necessary to admit that many persons served under the
puppet governments sponsored by the enemy. Some of these, especially those
engaged in health and educational work, remained at their posts of duty with
an evident intention to sustain the physical and cultural welfare of their
people. Others of the clerical and custodial services continued in office in
order to earn their accustomed livelihood and participated in no way in
enemy policy. But, regrettably, a number of persons prominent in the
political life of the country assisted the enemy in the formulation and
enforcement of his political policies and the spread of his propaganda.
Others in the field of trade and finance seized upon the occasion to enrich
themselves in property and money at the expense of their countrymen.
Reports have appeared in the press which indicate that a number of
persons who gave aid and comfort to the enemy are now holding important
offices in the Commonwealth government. Reports further indicate that the
Commonwealth government is only beginning to investigate, charge, and try
the offenders. It is essential that this task be completed before the
holding of the next Commonwealth general election.
Considering that disloyalty to the Commonwealth is equally
disloyalty to the United States, I request that you send experienced
personnel to the Philippines to discover the status and to recommend such
action as may be appropriately taken by the United States. Such
recommendations should be made through the United States High Commissioner
to the Philippine Islands. I am further requesting that the Secretaries of
War and Navy direct the staffs of their intelligence sections to cooperate
with you and make available to you all records and evidence bearing on this
important problem.
Representatives of the Federal Bureau of Investigation assigned to
the Philippines should be directed to report through the United States High
Commissioner in connection with this and other operations in the Philippine
Islands.
To the Secretary of War:
As a result of prolonged enemy occupation of the Philippines the
law enforcement agencies of the Commonwealth Government were seriously
disorganized. Bearing in mind the fact that the War Department was
responsible originally for the organization of the Philippine Constabulary,
which had such an excellent record prior to the war, I believe that the War
Department should assist in every possible way by the assignment of officers
and men and the transfer of necessary equipment in reorganizing the
Constabulary on a non-military basis.
President Osmeña has advised me that the War Department has already
been of assistance in this task and that considerable progress has been made
by the Commonwealth Government. Both he and I feel, however, that continued
assistance until the reorganization is completed would be helpful.
I ask that this continued assistance be extended to the
Commonwealth Government so that law and order may be fully restored in the
shortest possible time, and that you submit a report to me as soon as a
program has been formulated.
MEMORANDUM to the Secretary of the Treasury and
the Secretary of
War:
It is my understanding that due to a shortage of legal currency in
certain areas in the Philippine Islands early in the war and continually
thereafter until the reoccupation of the Islands by forces, a considerable
quantity of emergency currency was issued, some by properly authorized
officers of the United States Government and some by representatives of the
Philippine government. It would appear that to the extent that this currency
was used either directly or indirectly for the prosecution of the war, its
redemption is a responsibility of the United States Government.
I request that the War and Treasury Departments make a careful
analysis of this situation and submit recommendations as to the necessary
steps which should be taken to discharge the obligations that are properly
responsibilities of the United States Government. Any arrangement proposed
for the redemption of this currency should include provisions designed so
far as possible to avoid any windfall to speculators.
To the Secretary of the Treasury:
During the period of their military invasion of the Philippine
Islands, the Japanese issued an unbacked fiat peso and tried unsuccessfully
to force its parity with the legitimate Philippine peso. The issue was so
unlimited that it came to be worthless, and upon our landing in Leyte it was
officially and quite properly declared not to be legal tender. However,
during the invasion period it had a rapidly declining value as a medium for
local trade, and numerous contract which involved the enemy currency were
settled or entered into. While it would be against the public interest to
validate completely these contracts and settlements, a measure is needed to
serve as a standard for judgments between debtors and creditors.
Since you have representation in the Philippines through a mission
of the Foreign Funds Division, I request that you cooperate with the High
Commissioner and the Commonwealth Government in drawing up a schedule
showing the relative trend of the purchasing power and exchange rates of the
Japanese Philippine peso during the period of invasion.
To the Surplus Property Administrator:
Prolonged enemy occupation and active warfare in the Philippine
Islands have left in their wake a tremendous problem of relief and
rehabilitation. It seems apparent that there must be large supplies of
surplus government property now available which could be used to great
advantage in the Philippines in the program which must be undertaken there
by the Philippine Government. Such items as construction equipment, medical
supplies and hospital equipment are badly needed.
Where such supplies can be used directly by the government of the
Philippine Commonwealth, I believe this Government should make the supplies
available without cost to the Commonwealth. It might perhaps be desirable to
arrange the transfer on such terms as would prevent the property from being
later offered for sale to the general public.
Since there is at present no legal authority to effect such
transfers, I believe we should seek such authority.
To the Administrator of Veterans’ Affairs:
In connection with a general program of reestablishment of orderly
government in the Philippine Islands and the discharge of just obligations
of the United States Government therein, I request that the Veterans’
Administration make a careful analysis of all phases of past and current
benefits payable in the Philippine Islands to American and Filipino
veterans, and submit to me at the earliest possible date a report which
should be accompanied by recommendations for any new legislation which may
be required.
To the President of the Export-Import Bank:
In connection with the rehabilitation of the Philippine Islands and
the restoration of the normal economic life of the Islands, I believe that
the Export-Import Bank should participate in this program. It should, it
seems to me, be possible to work out a program to operate in the Islands on
a purely business basis which would be of great assistance in restoring
normal economic conditions.
May I have your comment on this suggestion, and in the event that
you feel that the bank is at present without legal authority to function in
the Philippines, your suggestions as to steps that might be necessary to
permit it to do so?
To the Administrator of the War Shipping Administration:
In connection with the rehabilitation of the Philippines and the
restoration of normal economic life of the Islands, I am very anxious that
all possible steps, consistent with our obligations elsewhere, be taken to
supply adequate shipping to the Philippine Islands.
I would be glad to have a statement from you as to the plans of the
War Shipping Administration and the amount of tonnage which is expected to
be available for Philippine trade, particularly in the near future.
To the Chairman of the Reconstruction Finance Corporation:
The almost complete lack of consumers goods in the
Philippines–goods ordinarily imported from the United’ States–has brought
about serious price inflation and black markets which cause great distress
among the people. An excellent start has been made by the Foreign Economic
Administration in cooperation with the War Shipping Administration to
eliminate inflation by facilitating normal import trade.
You are, therefore, requested to direct the United States
Commercial Company to use resources and personnel within its jurisdiction to
continue and to advance the Philippine program which it has undertaken, and,
where necessary, to sell goods on credit terns not exceeding two years in
duration.